Replacing administration with capital management

Capital management is an umbrella term for various activities and skills that contribute to a company’s overall success. It includes the ability to form strategy, create budgets, develop financial plans, determine the return on investment (ROI), and find new ways of managing cash flow. All of these tasks are usually managed by executives but they can also be outsourced or delegated to lower level managers.

In this article we'll look at what capital management entails and how it can replace administration work in your business so you're free to focus on more important matters. We'll also examine what skills are needed for this type of job, as well as its salary expectations and potential career progression opportunities.

What is capital management?

Financial management is one of the most important aspects for any kind of business and encompasses several tasks, such as cash flow management, capital budgeting, investment analysis, and risk financial analysis. However, these tasks are often performed by different people and sometimes even in-house. An experienced project manager can be a great asset when it comes to streamlining processes and making sure all the necessary checks are completed in time. They’ll be familiar with all areas of the company so they can handle everything from payroll management to PR initiatives.

Capital management is essentially the same thing, except it encompasses several more tasks. It also covers a lot more than just financial reports and checklists. There's a lot of extra work involved which means it's best for companies that lean towards lean management practices or if you're working alone and no one else can oversee certain areas of your business.

What skills are needed?

When you take on the role of capital manager, expect to be spending most of your time in your office or on the phone with clients. You'll be expected to handle any questions that their accountant may not have the answers to and make sure all the information is documented correctly.

This might sound like a lot of work, but essentially you're creating an internal auditing system so your clients can focus on what they do best. It's a great way for small businesses to outsource tasks such as:

Cash flow management – This includes forecasting sales, creating budgets and forecasts, and calculating the company’s current cash position. You'll be responsible for making sure that all this information is published on time so your clients are able to make informed decisions when it comes to their budgeting process.

– This includes forecasting sales, creating budgets and forecasts, and calculating the company’s current cash position. You'll be responsible for making sure that all this information is published on time so your clients are able to make informed decisions when it comes to their budgeting process. ROI – This is where you calculate how much you're spending on staff and how much they're bringing in. You should also be able to predict whether or not any kind of investment will pay off.

– This is where you calculate how much you're spending on staff and how much they're bringing in. You should also be able to predict whether or not any kind of investment will pay off. Investment analysis – This is where you come up with new ideas and decide where the company can save time, money, and effort. You’ll also be able to work out which investments have paid off in the past and where they're likely to pay off in the future.

– This is where you come up with new ideas and decide where the company can save time, money, and effort. You’ll also be able to work out which investments have paid off in the past and where they're likely to pay off in the future. Risk financial analysis – This is necessary for any kind of business because it can help them assess their risk versus return on investment . As the capital manager you'll be responsible for identifying risk and managing it.

– This is necessary for any kind of business because it can help them assess their risk versus return on investment As the capital manager you'll be responsible for identifying risk and managing it. Budgeting – This is usually done by someone in a department but if there's no one to do this or they're too busy then expect to take on this role. You'll need to create your own budgets based on what the market is doing as well as predicting potential issues that might affect sales or production.

– This is usually done by someone in a department but if there's no one to do this or they're too busy then expect to take on this role. You'll need to create your own budgets based on what the market is doing as well as predicting potential issues that might affect sales or production. Forecasting – As a capital manager you'll be responsible for looking into the future and identifying opportunities for profit. You'll need to analyse current sales trends, gather data on how competitors work, and identify areas where your business could save time and energy.

What's the salary like?

Not all capital managers will earn the same amounts because they're still considered an emerging profession. Some companies may have a more lenient approach to hiring them while others may have a more stringent policy. In most cases you'll start off making somewhere between £30,000 and £70,000 depending on your experience level and how long you've been working in the industry.

The good news is that those who do well for themselves will be able to earn much more than this amount. You should also expect to work regular weekends, nights and public holidays if necessary or when required by your clients’ deadlines. As for salaries for senior positions vary greatly depending on the company you work for but can reach as much as £120,000 per year or even more.

Do you need a degree?

The good news is that you don't necessarily have to have a degree to be an effective capital manager. Most of your time will be spent analysing data and making reports so whether you've study finance or not doesn't really matter. However, if you do want to work in this field then it's best to get some kind of training first as you'll need to be familiar with the latest techniques and software. One of the most popular methods is through ICMA where the courses are specifically designed for those who want become capital managers.

How can Capital Manager help?

At Capital Manager we offer a range of financial services which includes debt collection, invoice management and more.

Conclusion

Capital Manager may not be a well-known profession, but it's one that has been steadily growing for a number of years. Because of this, the role has become very popular and you can now apply for almost any job in this field. You don't necessarily need to have an accounting degree to qualify but it will help if you have some experience in the industry. Just make sure that you're highly motivated and always willing to put in extra hours so you can keep your client's businesses thriving.