What is a financial partner and do you need one?
Every business needs a financial partner to weather times like recession and so on. These professionals will be there for the sole purpose of rendering financial services to the company.
Acquiring a financial partner is very crucial for any business as it determines how cash flow enters the business. It also determines how well your business can thrive even during downtime.
A financial business partner is typically interested in a company's management team, information and technology department, and accounting department.
The departments mentioned above are the most important in any organization.
Indeed, they are either involved in the management of the company, keeping information and technology up to date for growth, or in the finances of the company.
Some companies like to work without financial partners for one reason or another because they don't know who the financial partners are and if they need them.
What is a Financial Partner?
Recently, people confuse financial partner and strategic partner, but they have different meanings. A financial partner is an individual who is looking for companies with high potential and capable of generating income.
He or she can also be considered a private investor, a business, a hedge fund company, an individual, and even a family. A finance business partner cannot function without the help of an accountant as they must be analytical and friendly with the ability to communicate.
They also need forecasting skills. These people are highly trusted by anyone who makes a deal with them because of their abilities.
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Is financial partnership a good job?
Being a financial partner is fun and rewarding work. However, this job has a lot more to do with your personality and not just the job. Financial business partners who have succeeded in this arena are seen as leaders capable of making and changing decisions that go beyond finance.
They can also communicate their message to the required audience in a very user-friendly manner. To be a successful financial partner, you need to possess certain skills such as analytical skills, challenge and negotiation skills. You also need decision-making, strategic thinking, and relationship management skills.
In all the skills mentioned, you'll notice that some of them have a lot more to do with your personality, not just a skill you've learned and developed. To be good at it, make more friends with people who aren't just in finance. You should also volunteer for field-related projects.
Also learn how to use tools like Balanced Scorecards, Activity Based Costing, and more. Next, develop leadership skills and try to hire a coach to guide you.
Finance Business Partner Job Description
A financial business partner has so much work to do in any organization because most of the financial decisions start from his desk. These decisions will also affect other departments in the organization and their competitors.
The job of a financial business partner is to:
Improve financial reporting on company performance.
Provide analytical data for better understanding of business strategy.
Make sure goals are met.
Build partnerships and maintain good relationships with all teams.
Assistance in the preparation of budgets.
Assistance with financial forecasts.
If, as a Financial Business Partner, you cannot perform all of the tasks listed above, this job is not for you. You must have all the qualities required for this job because it is very important for the internal and external growth of the organization.
You will not just be a normal accountant but a qualified one with either an ACA, ACCA or CIMA coupled with the required skills.
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Qualifications of financial partners
As a Financial Business Partner, you will need to meet at most 100% of the qualifications and at least 90% of them. The more degrees you have, the more likely you are to be hired. To qualify as a financial partner, you must meet the following qualifications.
Bachelor's degree: You will need to have at least a bachelor's degree in a related field such as finance, economics, accounting or any other related field of study.
Level of experience: You must have a minimum of 5 years of experience to be able to work as a professional financial partner in any organization, whether private or collective. If you have up to 10 years of experience, this is also an added advantage for you as it will make you employable or retainable for certain employers.
Communication skills: A financial partner must have good verbal and written communication skills. You must be able to present your data and decisions well to the public in written and verbal form for better understanding. You can't be good at speaking and not be good at writing, it should go hand in hand.
Analytical skills: They must be able to disassemble information into pieces so that decisions are easier to make. To be analytical, you will be logical, critical in your thinking, good at research and also good at analyzing data.
In addition, a financial business partner must also be creative.
Negotiation skills: This has to do with settling disputes between two parties. For a negotiation to be successful, one party must have made compromises for both parties to come to an agreement.
This skill is very important for financial partners because they will need to know when to compromise and when to persuade in order for a transaction to succeed.
Negotiation skills include active listening, emotional intelligence, expectation management, patience, adaptability, persuasion, planning, etc.
Multitasking skills : This involves the ability to control and engage in multiple responsibilities by doing one and supervising the other tasks. This skill is highly sought after by employers.
To multitask, you'll need to create a to-do list, choose your priority, then group similar tasks together, avoid secondary distractions, and delegate those that need to be delegated.
Talents for problem solving: It is the ability to manage heavy and complex problems. It helps to determine the source of a problem and also offers solutions to the problem.
To be a problem solver, you must possess the following; active listening, analysis, research, creativity, communication, reliability, decision-making and teamwork.
As many qualifications as a financial partner must have before seeking employment in the field. So much is expected of a financial business partner and that is why all these skills are required of them before hiring.
Financial partner salary
As of November 2021, the financial partner salary was $120,793.58.07. It will be $2,323 per hour, $10,066 per week, and $65,000 per month. Experts in the field earn around $10,000 and beginners earn around $1,000 while middle income people earn around $1,000. The salary of the financial partner is quite appetizing.
There are some cities where a financial partner earns above the national average. This salary, however, varies according to education, certifications, but also the experience you have acquired in the field. It is a very lucrative job in any part of the world and it also involves a lot of work on the part of the person concerned.
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How to choose the right financial partner
Do you know that 50% of businesses fail before they start or even a few years after they start due to the way they manage their financial resources? How the company handles its lack of capital, inadequate planning, and mismanagement of its cash flow and marketing budgets affect the business to a large extent.
Any company without a financial partner already faces its difficulties because a financial partner helps it plan its cash flow and resources. If you're looking for how to choose a financial partner or evaluate one you already have, check it out below.
Refresh your vocabulary on financial terms.
Create a list of what you want.
Research and interview potential partners.
Perform a reference check for alignment.
You need to brush up on your vocabulary if you want to work as a financial partner. Some people confuse accounting and finance because they both have to do with money.
Some people say finance is where it all begins and accounting is where it all ends. Although having an accountant covers both areas in any organization.
A financial expert is not necessary in an accounting office; it is so that good decisions can be made. As a business person, you should be able to have conversations with your potential financial partners to assess your business needs.
Before making this choice, you must ask yourself what is the vision of my company, what are my values, what do I expect from a financial partner, what are the strengths and weaknesses of my company, what is my budget, what is my preferred work arrangements, online or onsite?
You should also be able to investigate and interview potential financial partners since you have a full list of individuals. You can start by interviewing candidates from trusted sources. Once you have completed the interview, you can then think about investigating their profile.
If you are thinking of starting a business, you will probably wonder what is the Premium Tax Credit? How it works?
Financial partner vs strategic partner
There is a clear difference between a financial partner and a strategic partner. There are also reasons why business owners choose each of these partners. But the bottom line is that for a business to grow, you need a financial partner for the cash flow and there's the strategic partner who studies your products and your customer base.
A strategic partner is someone whose job description is to research your products. He must also know your market share and your customer base.
They are less interested in the company's workforce and also seek to make more money for the company by increasing the technology used, increasing their market share, and increasing or modifying the products if necessary. .
A financial partner only watches over his investment and he verifies an investment well before embarking on it. A financial partner finds it difficult to manage a business compared to a strategic partner.
These people are also as important as strategic partners, as they help secure deals that will bring huge cash inflow to the business. It takes them less time to close a deal compared to a strategic partner.
Frequently Asked Questions
What is the FPCU?
They are Financial Partners Credit Union and they help people find solutions to their financial problems such as loans, savings and checking accounts.
How to find the right financial partner?
It takes patience to find the right financial partner. Some of these partners are there to consume your business, so patience is important in finding the right ones.
What are the tips for finding the right financial partners?
First, you need to find investors, collect data on everything that will be asked of you, and then nurture relationships.
Is a strategic partner more advantageous than a financial partner?
These two partners are good and very necessary in any organization. A financial partner provides the cash flow while the strategic partner manages the cash flow and ensures that the business returns more on the investment made.
Why do I need a financial partner?
You need a financial partner to manage the cash flow of your organization or business. They are also necessary to help the company withstand financial crises, especially during recessions.
Conclusion
The advantage of a financial partner in any business cannot be underestimated. They make most of the financial decisions in an organization and help them weather financial crises. For your business to thrive, you should consider employing the services of one.
References
www.talentlyft.com
www.randstad.co.uk
www.linkedin.com
https://www.ziprecruiter.com
www1.salary.com
https://www.forbes.com
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