A constant challenge in the finance area is to ensure that the department is recognized as strategic to the business. And this is not an easy step.
Although finance activities are essential for the health of a company, there are still many paradigms to be broken. One of them is related to the difficulty professionals have in interacting with other areas, which is essential to broaden knowledge about the company and the market in which it operates, in addition to improving interpersonal relationships.
In light of this, one of the financial managers ' missions is to work to develop the technical and behavioral skills of their team, encouraging them to achieve results. To this end, applying metrics and goals to each financial project becomes a necessity.
And this is where the importance of defining specific results indicators that will facilitate team management and the achievement of strategic objectives in each area arises.
Some examples of KPIs used in the financial area are:
# achievement of cash flow planning : assesses whether the venezuela whatsapp data result was different from or close to what was planned.
# result and cost budget (realized versus budgeted) : this is a metric that facilitates the analysis of possible financial discrepancies.
# loan management (monitoring payments, availability of lines and costs) : when we talk about relationships with the bank, it is important to monitor loan costs and check whether the available credit lines and terms are appropriate to the corporation's needs.
# profitability versus liquidity term and profitability versus risks : essential KPIs for evaluating the potential and effective return of an investment.
# Monitoring the capital budget : it is often forgotten to systematically and regularly monitor the results of decisions made in capital allocation. It is used to identify whether the value generated by the project is in line (or not) with expectations.
Adopting the use of indicators is an important step in project management. However, one point that financial managers cannot forget is the need to share isolated knowledge.
What does this mean?
The company's knowledge management is often tacit and exclusive to each employee in the area. Therefore, it is necessary to look for alternatives to automate and share each employee's individual content, seeking to transform isolated knowledge into explicit knowledge.