We are not revealing anything new when we highlight the importance of financial area of a company. After all, as we have highlighted in other articles on our blog, having money and being in good financial health is essential and has been so for centuries, since the first businesses were established. Either the balance sheet adds up and profits exceed expenses, or the business is doomed to disappear. This is an irrefutable reality for both large companies and SMEs.
However, developments in society and in the business world in particular have meant that you, as an entrepreneur or financial manager, have to work differently. Rather, as is currently the case, it has meant that you have to adapt to the new digital-based times and rely on what they have to offer. It doesn't matter whether you are applying these new technologies and tools to your entire company or just to its finance department. At easyap , we offer you our support in both areas, which can be great for you to leverage your finance department in this new business landscape.
The financial area of a company by definition
What is the financial department of a company? Let's start with the basics. That is, by defining what we at easyap and as a society understand by a finance department. We are talking about the financial area of a company, by definition, the internal department of any business that is responsible for managing and coordinating the company's financial responsibilities of the company.
The main function of this area is to manage the company's financial assets and make the corresponding payments. It should also be noted that the administrative and financial area in a company is indispensable. Its existence is necessary for the viability of the organization, whether through a department composed of teams with many employees and branches or represented by a single manager.
The functions of a company's finance department
Along these lines, as the objective of the financial department of any company has always been the same, its functions, broadly speaking, have also remained unchanged over time. That is why we could say that the general tasks of any company, regardless of its size and turnover, would be those listed below:
- Fundamentally, balance the financial statements at the end of each month, quarter, and year.
- Prepare budgets and plan what to invest in based on the organization's commercial and business strategy.
- Taking care of payments, whether to institutions (for tax purposes), suppliers, or the company's own employees. This task also includes another function of the company's finance department: taking responsibility for employee expenses for travel, per diems, transportation, etc.
- Plan the financing of the business. In other words, take charge of finding, maintaining, and/or managing the sources from which you will try to obtain money.
- Redistribute actions or tasks among other departments and among the different people belonging to the administrative area of the company and ensure that they comply with the established requirements.
In this regard, it should also be emphasized that manager responsible for the area will be responsible for coordinating all these functions with the various departments and employees concerned. To this end, the department director has the authority to establish financial controls it deems appropriate.
In turn, the finance and administration department will have to be accountable and be the visible face in meetings with other business departments, stakeholders, partners, etc. Of course, this mission will normally fall mainly to the person in charge of the area.
What is the finance department of a company like?
And in line with the previous point, there should always be someone responsible for finance department of any business. Thus, the person in charge of a finance department is what is called and has always been called the chief financial officer. Today, given the tendency to use Anglicisms for everything related to the business world, it is also common for the head of a company's finance department to be referred to as the CFO, which stands for chief financial officer.
However, once a company reaches a certain turnover, its finance department becomes a vital part of the organization. For this reason, the finance department of a large company or SME will also have other positions. Or even other "sub-departments."
For this reason, it is possible to find companies in which, within the administrative and financial department, everything is organized in an organizational chart that includes these areas:
- The area of financial controls to manage the company's assets.
- The tax department, responsible for tax calculations, payments, and collections.
- The treasury department which will handle credit analysis, financial operations, insurance, and other types of financial relations.
- Sometimes, the people and teams responsible for aspects related to human resources are also considered part of the finance department. human resources as well as those who handle financing for general services (materials, facilities, etc.) are also considered to be part of the finance department.
On the other hand, when controlling the finances of any business, as we have been saying throughout this article, it is essential that the accounts comply with the law and relevant tax regulations. That is why certain business trends also place the administrative and financial area of companies the auditing. Whether they are internal company auditors or outsourced, their service is also very important for the viability of any business.
Easyap and its role in the economic area of companies
Now, what about the economic and financial area of a company in today's digital world? And what role does easyap play in it? As we have detailed in many other articles on our financial blog, any company must adapt to this new landscape. The companies of today and tomorrow have to adapt to digital transformation of the world, where everything is online, teleworking is becoming the norm, etc.
This is where we come in: easyap. A team made up of finance and technology professionals finance and technology with extensive experience in projects that combine both disciplines. We offer an electronic invoicing service with multiple benefits for finance departments and directors and which we have already implemented in companies around the world, allowing you to:
- Issue and receive all your business invoices for your business electronically and in one place.
- Monitor the point in the process at which each of these digital invoices are (known as invoice workflow). In turn, your customers and suppliers will also be able to review this information, which will help maintain a transparent and clear relationship with them.
- Stay up to date on tax matters, as the easyap solution adapts to the online tax laws and systems established by each government.
- Add and manage all employee expenses that are generated in your organization.
In addition, all these actions will be integrated into that unique space that is the easyap electronic invoicing software . What's more, our system is compatible with any accounting package or any other ERP, so you won't have to worry about a thing. In less than a week, our team will implement the system in your business so that you, as a manager, can devote your time to other work tasks.
The benefits of our system for a CFO
The fact is that the power digitizing your SME or certain tasks in the financial area of your large company, such as invoicing, will bring you two main benefits: cost savings and much more time. In fact, focusing on cost savings, at easyap we offer two competitive advantages that are of great interest:
- Implementing our billing system for your company's accounting department has no initial setup costs.
- If you already had your billing outsourced, with our software goes from being a fixed cost to a variable cost because the price is per invoice processed.
Above all, and to conclude, the fact that we charge for each invoice processed means that we can adapt to a wide variety of businesses. Companies with high turnover levels, as well as SMEs with lower business volumes. And as we said, in less than seven days, you can have the software fully implemented and invoicing in your business.
Get in touch with us right now in whatever way is most convenient for you: using the form on our contact page, by calling us on either of our two numbers (902 327 927 or 914 562 845), or even visiting us at our office in Madrid, located at Paseo de la Castellana 135, 7th floor. We are waiting for you... and so is the future.
