Finance for non-finance: Why all managers in your organisation need it
Not all leaders or managers have a degree in finance comfortably tucked in their belts. In fact, many top CEOs have not held finance portfolios before finding themselves right at the top. There are various finance courses available for not only finance managers but for those who manage non-finance functions in an organisation.
Howard Schultz graduated from Northern Michigan University with a bachelor’s degree in communications on a football scholarship before becoming director of retail operations and marketing for the Starbucks Coffee before becoming CEO and Chairman of Starbucks.
As finance is the language of business, every person in an organisation will need to speak the same language of how they will make money for the business.
According to Van Auken, author of Financing small technology-based companies: The relationship between understanding of capital and ability to price and negotiate investment. Journal of Small Business Management, “business owners lacking in knowledge about the possible impact of the decisions made by them, may lead them to the risky choices and lessen the business inflows.”
Managers adept in financial knowledge generally make better decisions that are sustainable and benefit the organisation. In fact, in a post-pandemic world, budgeting or cost-cutting measures will occur and everyone in the organisation will feel the impact.
In response, managers that have sound financial knowledge and skills will be able to use resources wisely to benefit the entire organisation. This can only happen when managers understand that decisions that are made in an organisation at higher levels-this help align with organisational strategies and corporate goals.
Finance matters do not only affect the organisation but also has a wide-reaching impact on stakeholders. As a manager in charge of presenting financial reports, strong knowledge needs to be exhibited to influence and convince the stakeholders on financial grounds.
Without a grasp of some basic financial concepts, it can be easy to take what appears to be a wise decision, but one that nevertheless is ill-informed and adversely affects the financial health of the business.
Why organisations should provide training through finance courses for non-finance professionals
While there are various programmes, courses, books, and webinars available online for non-finance managers who are keen to upskill themselves in this field, organisations will benefit greatly from providing training in finance for their non-finance managers.
Finance for non-finance managers courses typically covers all the important aspects of finance that will enable managers to understand and apply the concepts of accounting and finance, as well as become adept in key accounting and finance terms.
These broad courses will enable decision-makers to apply accounting concepts in business processes.
There are courses designed for non-finance managers that focus on project budgeting and accounting.
Additionally, managers can develop an understanding of managing cash and become more efficient in budgeting which is highly beneficial for not just the particular department but the organisation as a whole.
Business leaders can also opt to provide training through finance courses that will help their managers become more effective in developing a cost management plan as they grow adept at factoring the different types of costs in their planning.
This will be useful when planning the budget for projects, allowing them to effectively control costs, thus benefiting the organisation.
There are also workshops designed to take on a more hands-on approach with financial education for managers.
These finance workshops impart the knowledge of tools and techniques to help managers understand and apply data from financial and accounting reports through a more hands-on approach.
Alternatively, non-finance managers can opt for online courses available on MOOCs and even gain knowledge in finance from these books.
Encouraging or incentivising self-paced learning will not only prove beneficial to the individual but can ensure growth for the entire organisation as a whole.