course hero: what new or deeper understandings do you have about the finance function?

by Elizabeth Pouros 10 min read

What can you learn about finance while on the job?

It’s also possible to learn about finance—particularly how it impacts your organization and role—while on the job. Quarterly budget meetings, if your company hosts them, can offer insight into the financial health of your organization and the metrics that are important to it.

What is financial understanding and why is it important?

Financial understanding will give you the tools needed to gauge how well your department is performing, both by itself and as part of the greater company—key insights for anyone in a managerial role. It will help you determine the answers to questions like:

What are the duties of Finance?

One of the primary duties of finance is to determine which projects show the most promise for a positive return on investment, and to prioritize those over projects which would contribute less effectively to the company’s strategic goals.

Is your finance department a mystery?

All too often, a company's finance department is shrouded in mystery. Many employees are unable to explain what the department is, what it does, or how it impacts the work they do. But the truth is, finance affects each and every person.

Why is financial understanding important?

Financial understanding will give you the tools needed to gauge how well your department is performing, both by itself and as part of the greater company—key insights for anyone in a managerial role. It will help you determine the answers to questions like:

What is the primary job of finance?

One of the primary duties of finance is to determine which projects show the most promise for a positive return on investment, and to prioritize those over projects which would contribute less effectively to the company’s strategic goals.

How does finance communicate?

Finance communicates the overall health of an organization , explains how an individual’s actions impact the company’s success, creates guidelines for future goals and initiatives, and sets meaningful metrics to determine performance across departments.

How does finance affect productivity?

Productivity. All too often, a company's finance department is shrouded in mystery. Many employees are unable to explain what the department is, what it does, or how it impacts the work they do. But the truth is, finance affects each and every person. Finance communicates the overall health of an organization, explains how an individual’s actions ...

How is personal investment managed?

Your personal investment portfolio is likely managed through a broker, or packaged into a mutual fund. And, of course, the interest rates on everything from your mortgage to your credit card are impacted by the actions of the Federal Reserve, which often takes its cues from larger economic trends.

Why is it important to have a solid financial knowledge?

A solid foundation in financial knowledge can help you navigate the tricky questions that are often related to these considerations. For example, it might enable you to better judge whether an investment opportunity makes sense for your financial goals—whether that be growth, safety, or a mix of both.

Why is it important to develop financial skills?

On a more granular level, developing your financial skills will help you understand how the work you perform specifically contributes to the financial health of your company —information you may be able to leverage to negotiate a raise, promotion, or increase in other benefits.