Every business has a financial management aspect in contemporary society. Financial management draws focus to debts, equities, and probable ratios ( Anderson et al., 2018 ). It also incorporates capital raising and being alive to research as well as maximizing the firm’s value to benefit all stakeholders ( Weber, 2019) . Managers are pro-actively faced with decision making points with regard to budget, capital approvals, operations and the hiring and firing of personnel ( Langemeier, 2018 ). Markedly, the financial management skills also capture administrative functions in an organization.
The first skill is the analytical Ability. Notably, the managers are faced with financial analysis of strategic initiatives and capital investments. These are normally designed to improve financial and operational productivity ( Weber, 2019) . In a bit to be efficient, the managers’ analytical ability should make them alive to the assumptions that do underlie the financial analysis of a particular project. This is especially because most of them are championed by leadership perspectives. Remarkably, a faulty financial analysis directly results in mega losses, sometimes to the tune of millions of dollars ( Anderson et al., 2018 ). With regard to the future, analytical ability is an integral part in depicting financial implications of the decisions made in the long term ( Langemeier, 2018 ). The financial information accrued because of the leadership and the manager’s analytical ability safeguards the company from hitting a crisis in future ( Weber, 2019) . For example, the managers who do not analyse the implications of the concept of Return on Investment (ROI) and the eventual interpretation of the common financial techniques will in the long term end up negating the Internal Rate of Return (IRR).
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Second are the interpersonal skills. In modern day work layout, especially in management, a leader and manager ought to have great interpersonal skills ( Langemeier, 2018 ). The ability to build successful relations by finance and accounting professionals is key in the eventual success of the business ( Weber, 2019) . The narrative has moved from primarily crunching numbers to more frequent interactive sessions with clients. The ability to build good relations with customers and colleagues is critical ( Anderson et al., 2018 ). The implication it has on the future is that clientele that regarded services given as satisfactory will always return to do business with the organization ( Langemeier, 2018 ). Future referrals may also be given by the customers, and this in extension not only boosts the revenue of the business, but also the managers general repute in business circles.
To conclude, the problem- solving skills are equally vital. In contemporary business organizations, it is essential to have the ability to tackle complex and simple problems that may be brought about by different dynamics in the industry ( Anderson et al., 2018 ). It may be addressing major financial implications of the business structure, or devising personalized solutions unique to different clients ( Weber, 2019) . These skills go a long way in being able to being visionary, as they can solve issues at hand, which may be severe in future.
References
Weber, A. (2019). Financial Management Skills and Entrepreneurial Success: Evidence from Transaction-level Data . Working Paper.
Anderson, S. J., Chandy, R., & Zia, B. (2018). Pathways to profits: The impact of marketing vs. Finance Skills on Business Performance. Management Science , 64 (12), 5559-5583.
Langemeier, M. (2018). Assessing Financial Management Skills. farmdoc daily , 8 .
