Question

What 5 issues is your finance department concerned with?

Answer 1

Finance department in an organization deals with managing money, proper way of utilization, and investments. In the process of doing so the department faces various issues; these are discussed below:

No.1) How to get money: this is very common question. Money should be arranged in a way where there is the minimum obligation of repayment – this is the reason why company’s stocks are issued but not taking loan. On the other hand, being a small firm (like my company) the finance department searches a way of getting loan at the minimum interest.

No.2) How to investment in project: My finance department faces issues of investing because of future uncertainties – if invest in long-run the return would be high but having risks.

No.3) How to manage funds: There are so many offers and benefits from the government (like tax reliefs, subsidized loan, etc.). The finance department is constantly looking into it but faces issues, since availing those require so many formalities to be fulfilled.

No.4) The issue of working capital: this is the excess amount of current assets over current liabilities. It requires for day-to-day running of the business; but sometimes the finance department faces problem of arranging it because of inflation.

No.5) The issue of customer credit: The amount of sales which is done on credit becomes due. The finance department keeps follow-up with them; but still there are provisions and bad debts for non-recovery.