Every business needs a financial partner to withstand 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 to any business because it determines the way cash flows into the business. It also determines the extent to which your business can thrive even in downtimes.
A financial business partner is usually interested in a company’s leadership team, the information and technology department, as well as the accounts department.
The departments mentioned above are the most important in any organization.
This is because they are either involved in managing the firm, keeping the firm up to date with information and technology for growth, or the firm’s finances.
Some companies like working without financial partners due to one reason or the other because they do not know who financial partners are and if they need them.
Who is a Financial Partner?
Recently, people mix up a financial partner and a strategic partner but they have different meanings. A financial partner is an individual who searches for companies with good potential and the ability to generate revenue.
He or she can also be seen as a private investor, a firm, a hedge fund company, an individual, and even a family. A financial business partner cannot operate without the help of an accountant because they need to be analytical and friendly with the ability to communicate.
They also need forecasting skills. These people are highly trusted by anyone who gets into a deal with them due to their capabilities.
Is Financial Partnership a Good Job?
Being a financial partner is a good and rewarding job. However, this job has a lot more to do with your personality and not just the job. Financial business partners who have made it in this field are seen as leaders that can make and change decisions that go beyond finances.
They also can communicate their message to the required audience in a very friendly way. To be a successful financial business partner you have to possess some skills such as analytical skills, challenge, and negotiation skills. You also need decision-making skills, strategic thinking, and relationship management skills.
In all the skills mentioned, you will notice that some of them have a lot more to do with your personality, not just a skill you learned and developed. To be good in this field, make more friends with people that are not only in the finance business. You have to also volunteer for projects relating to the field.
Also learn to use tools like balanced scorecards, activity-based costing, etc. Then develop leadership skills, and try getting a coach to guide you through it.
Financial Business Partner Job Description
A financial business partner has so much work to do in any organization because most of the financial decision starts from their office. These decisions will affect the other departments in the organization and their competitors as well.
The Job of A Financial Business Partner Is To:
- Improve the financial reports on business performance.
- Provide analytical data for a better understanding of business strategy.
- Make sure that targets are met.
- Build partnerships and also maintain good relationships with all teams.
- Assist in preparing budgets.
- Assist with financial forecasting.
If as a financial business partner you cannot carry out every single task listed above then this job is not for you. You have to possess all traits needed for this job because it is very important for the internal and external growth of the organization.
You won’t just be a normal accountant but a qualified one with either an ACA, ACCA or CIMA coupled with the required skills.
Financial Partner Qualifications
As a financial business partner, you will be required to possess at most 100% of the qualifications and at least 90% of them. The more qualifications you have, the higher your chances of being employed. To qualify as a financial partner, you must possess the following qualifications.
Bachelor’s degree: You will be required to possess a minimum of a bachelor’s degree in a related field like Finance, Economics, Accounting, or any other related field of study.
Level of experience: You have to possess a minimum of 5years of experience to be able to work as a professional financial partner in any organization, whether private or group. If you have up to 10 years of experience, then it is also an added advantage to you because it will make you employable or retainable to some employers.
Communication skills: A financial partner should have good communication skills both verbal and written. You should be able to present your data and decisions well to the audience in a good way both written and verbal for better understanding. You can’t be good with verbal and not be good with writing, it should go hand in hand.
Analytical skills: They should be able to disassemble information in pieces so that decisions will be easier to make. To be analytical, you will be logical, critical in your thinking, good with research, and also efficient with data analysis.
Additionally, a financial business partner must also be creative.
Negotiation skills: This has to do with settling differences between two parties. For a negotiation to be successful, one party must have compromised for both parties to reach an agreement.
This skill is very important to financial partners because they will need to know when to compromise and when to persuade for a deal to be successful.
Negotiation skills comprise active listening, emotional intelligence, expectation management, patience, adaptability, persuasion, planning, etc.
Multitasking skills: This entails the ability to control and engage in several responsibilities by doing one and watching over the other tasks. This skill is highly sought-after by employers.
To multitask, you will have to make a to-do list, choose your priority, then group similar tasks, avoid any side distractions, and delegate the ones that need to be delegated.
Problem-solving skills: This is the ability to handle heavy and complex problems. It helps determine the source of a problem and also comes up with solutions to the problem.
To be a problem solver you should possess the following; active listening, analysis, research, creativity, communication, dependability, decision making, and team building.
All these are all qualifications that a financial partner should possess before seeking a job in the field. So much is expected from a financial business partner and that is why all these skills are required of them before employment.
Financial Partner Salary
As of November 2021, a financial partner’s salary was $120,793. This will be $58.07 per hour, $2,323 per week, and $10,066 per month. Experts in the field earn about $180,500 and entry-level earn about $65,000 while mid-earners earn around $95,000. The financial partner salary is quite a mouthwatering one.
There are some cities where a financial partner earns above the national average. This salary varies though depending on education, certifications, and also the experience you have acquired in the field. It is a very lucrative job in any part of the world and it also entails a lot of work from the person involved.
Check Out Businesses That Make Money Right Away in 2022 before you start that business.
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 how they handle their financial resources? How the company handles its lack of capital, inadequate planning, and also how they mismanage its cash flow and marketing budgets affect the company to a large extent.
Any business without a financial partner is already facing its troubles because a financial partner helps them plan their cash flow and resources. If you’re looking for how to choose a financial partner or assess the one you already have, then check them out below.
- Brush up your vocabulary on financial terms.
- Create a list of what you want.
- Investigate and interview potential partners.
- Do a reference check for alignment.
You have 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 everything starts and accounting is where everything ends. Though having an accountant covers both areas in any organization.
A financial expert is not needed in an accounting office; this 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 company’s needs.
Before making that choice you should 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 business, what is my budget, what is my preferred working arrangements, either online or on-site?
You should also be able to investigate and interview potential financial partners since you have a comprehensive list of individuals. You can start by interviewing applicants from trusted sources. Once you’re done with the interview you can then think of investigating their profile.
If you’re planning on starting any business, you definitely would be asking what is Premium Tax Credit is? How Does It Work?
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 summary is that for a company to grow you need a financial partner for cash inflow and there is the strategic partner that studies your products and client base.
A strategic partner is a person whose job description is to study your products. He or she must also know your market share and your client base.
They are less interested in the business manpower and also look to make more money for the business by increasing the technology used, increasing their market share, and also increasing or changing products if need be.
A financial partner is only looking out for his investment and he checks an investment well before going into it. A financial partner finds it difficult to run a business compared to a strategic partner.
These people are also as important as strategic partners because they help close deals that will bring a huge inflow of cash to the company. It takes them less time to complete a transaction compared to a strategic partner.
Frequently Asked Questions
What is FPCU?
They are Financial Partners Credit Union and they help people with solutions to their financial problems such as loans, savings, and checking of accounts.
How do you 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 to finding the right ones.
What are the tips for finding the right financial partners?
First of all, you have to seek investors, gather data on everything that will be required of you, then maintain the connections.
Is a strategic partner beneficial than a financial partner?
Both of these partners are good and highly needed in any organization. A financial partner brings in the cash inflow while the strategic partner manages the cash and makes sure the company yields more on the investment made.
Why do I need a financial partner?
You need a financial partner to manage the cash inflow in your organization or business. They are also needed to help the business withstand financial crises especially in times of recession.
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 withstand financial crises. For your business to thrive, you should consider employing the services of one.