The universe of SMEs is vast, and it is impossible to represent the peculiarities of each company with a general characterization. It is, however, important to underline that many authors emphasize the lack of importance given to administrative and inadequate management of the executive function. Especially for companies that operate in very dynamic sectors or work on orders, there is a tendency to organize in detail the aspects of production and distribution and neglect the financial aspects of business management.
By defining the organization as a set of rules and procedures that help the company manage and develop internal and external resources, it is possible to understand how each structural model represents the solution to only some organizational problems, leaving others open: to fill these gaps in each company, a solution is sought to the limits of each model through the introduction of complementary and corrective “operational mechanisms” that allow the organizational structure to function.
In the case of SMEs, the functions are not always formalized. They are usually present in an explicit and well-articulated way only in those subjects who possess a vast organizational capacity, imposed by the company’s size or by the characteristics of the reference market. These companies, in general, retain a strong link with the figure of the entrepreneur and cannot ignore an enhancement of human resources. The administrative function can be considered the mirror of all this. This is more sensitive to changes and the evolution of the company. In small businesses, the entrepreneur tends to take care of, or in any case, directly control, the performance of all activities, even of an economic and financial nature.
He is the interlocutor of the client and suppliers. He takes care of the relationship with the banks, and among his tasks appears the coordination of the operational and administrative sectors.
As the company’s size grows, there are many possible variants of managing the administrative function. Often, management’s administrative and accounting aspects are delegated outside the company. This practice has an immediate advantage in exploiting “mature” professionalism and skills but takes away something in terms of flexibility and programming skills. As a general rule, the authoritative capacity in SMEs and fostering the administration and arranging of the monetary and bookkeeping issues of the organization facilitate the exercises connecting with clients and providers and plays out a control work on current practices.
According to a hierarchical perspective, in most organized organizations, this capacity has the undertaking of carrying out monetary and monetary command over the administration of the organization, assessing progressing or arranged drives, giving administration speedy and itemized data on the organization, dealing with administrative and charge commitments. The board control business is performed beginning from the bookkeeping information, appropriately created: these, treated luckily, are submitted to the administration, which should methodically get general and logical data on the heading.
According to an essential perspective, this capacity is liable for assessing speculations performed utilizing analytical and factual instruments. Specific significance is figuring out the monetary assessment of present and future ventures. In practice, among the responsibilities of the administrative function, the following are particularly prominent:
- The management of general accounting and analytical accounting
- The care and development of the business management system (planning, programming, management, and control)
- Cost analysis
support for management control (reporting and analysis of the financial statements);
Given the infrastructural viewpoint, these exercises expect that powerful hierarchical straightforwardness is scheduled according to the authoritative perspective, which regularly conflicts with the adaptability and versatility of the capacity and the assets in question.
One more central viewpoint in the administration of this capacity, in medium-sized or semi-organized organizations, concerns the job and abilities of the capacity facilitator.
An individual should cover this job with a full specialized engraver who, simultaneously, should have talent and mediation abilities.
It is fundamental to have devices to help excellent skill in a private venture, be it a facilitator or an expert. The hypothetical readiness and constant refreshing are vital attributes to accurately deal with every one of the systems and errands that allude to the authoritative exercises.
Muddling what is going on is the risky relationship less coordinated organizations have with credit questioners. The new standards using a credit card, Basel 2, will help those subjects ready to offer clear and ideal data. The evident outcome is that organizations less prepared to administer managerial and monetary exercises will have an issue of admittance to credit channels.
Therefore, corporate finance assumes a central role, which will often be decisive if external growth opportunities are also brought into play. This determines the greater importance of financial functions within companies and greater attention to the planning of resources and development processes. Therefore, a fundamental step is outlined for companies: the finance function becomes as important as the commercial, organizational, and technological one.
Furthermore, it is clear that applying the ideas, fashions, and procedures proposed or put into practice by the various “gurus” in a slavish manner to dynamic and sensitive realities such as those of SMEs can be harmful, and that there are no two perfectly similar organizational structures, a good starting point is to promote greater awareness of one’s resources and skills.
This discourse assumes even greater importance for a sector such as the administrative one, which, for what has been said, turns out to have transversal tasks to the entire company work.
A mapping process based on simple rules allows management to monitor the skills and procedures used in carrying out the administrative function and the people involved to understand their role better. It involves putting into practice small rules of common sense, more effective communication (making meetings more frequent, using a plan, reviewing reports …), encouraging employee collaboration (asking for an opinion on even marginal aspects of work …), Paying more attention to continuous training, more tremendous respect for roles.
In practice, introducing a series of good habits capable of improving the corporate climate and favoring the correct execution of the various procedures is a question. However, the hypothesis of selecting a formal development of the financial structure remains valid. This does not involve a series of rules and formalisms for their own sake or, in any case, applied only “on paper.”
Planning, in fact, behavior that is usual for almost all larger companies, will have to become a habit also for smaller companies as it will be an unavoidable need to prepare and follow a business plan that integrates industrial management with administrative, commercial, tax, and financial.