Finance for Non Finance Professionals - Why

 In my opinion, all non-finance managers should build some finance skills too. Here's why and how they can get started: #FinanceWrap #LIPostingChallengeIndia #LinkedInNewsIndia

Finance is the life blood of any person and organisation.  It is important to have a measure, and finance helps check the pulse of the business. 

Everybody is in one way or the other contributing to and is involved in finance whether they realise it or not. It is said that 'Ignorance is not and excuse', so why be ignorant. 

1. Primary goal of every business: Good to know how connected we are, more so in an organisation and even more when it is a business, for the ultimate aim of any business is making profit. So one need to know what is profit, who to measure it, make it, maintain it and manifest it. 

2. Understanding the financial terms and jargons: Unless there is clarity, there would be a disaster in any organisation because of miscommunications. Finance has set terms and jargons, which might be perceived differently by other departments. Non Finance Manager's should be familiar with terms and jargons like, P&L, BS, EBITDA, Depreciation, Assets, Liabilities, Income, Expenses, GRN, PO, DSO, DPO, O2C, P2P, R2R etc.

3. Financial Statements: Non Finance Managers should know to read, if not to prepare the basic three financial statements viz. Profit or Loss also known as Income and Expenditure statement, Balance Sheet and Cash Flow statement. 

4. Financial Planning: One need to be aware of and contribute to the financial planning of the organisation. The critical input for it would come from every department other than the finance and would vary from organisation to organisation. It would involve activities like Budgeting, forecasting; short-term and long-term plans.

5. Collaboration: When every department is well collaborated and have sharing sessions, it will help understand the overall business well, make effective decisions.  This will help in cost savings and cost reductions. With AI and Technology advancements, departments can make single investment, rather than looking at each division separately. There could be sessions like Finance for Non Finance Managers etc. 

Understanding finance will make you more efficient, and enhance the growth of self and the organisation.