For any business, keeping track of the finances is very important. The current financial status of the business is an indicator of how the business is doing. Adjustments can then be made on the company’s business strategies depending on the evaluation of different financial indicators. Moreover, financial statistics can be used to predict future income and expenditures of the company.
Finances and accounting of the company is done by the accounting department. They do all the technical work regarding expenses, profit, and projections. However, it is also very important for the managers of all other department to understand finance and accounting so that they will be able to understand how accounting data are made and how their decisions affect the company as a whole. By this they will have an idea how a budget request is justified and they will be able to evaluate and adjust the strategies of their respective departments to the best interest of the entire company.
Finance and accounting for non-financial managers is a common course to educate non-financial management on the financial aspects of a business. It teaches them the very basics of accounting, from the obtaining and reporting the financial data, to how the data are used for analysis, evaluation, and decision making. Aside from teaching the technicalities of accounting, a finance and accounting for non-financial managers also demonstrates how these apply to actual business decisions. With finance and accounting for non-financial managers, leaders of every department would learn how to utilize their department’s budget and find ways to make their strategy more efficient.
After having a thorough knowledge of finance and accounting, all managers should be able to apply their leadership for results that translates into profit. We all know that leadership attributes include excellence in the field, being passionate, commitment, integrity, selflessness, charisma, and many others. But how do we validate if a leader is indeed a good leader?
There is no other way to measure leadership than from the results. Leadership for results should be the main criteria on how to evaluate a leader’s effectiveness. Understanding leadership for results is what leaders or aspiring leaders should focus on for them to be able to effectively handle the group of personnel under him. Leadership for results focuses on achieving good results in the different bodies that make up a company – the organization, the employees, the business partners, and the customers. In the leadership for results approach, effective leadership is leadership attributes combined with positive results.
Simply put, for a company to be able to climb greater heights, leaders should be trained and equipped with the technicalities of finance and accounting, as well as the leadership for results approach when leading their group.