The facility cost line is normally the second or third most significant line item in most organizations' budgets. As a result, the Financial Department pays close attention to facilities. As a result, the Facility Manager cannot ignore financial difficulties in order to maintain a positive relationship with this department and the Board. A Facility Manager must have financial data interpretation and presentation abilities, as well as a knowledge of the influence of his budget on the company's financial estate and familiarity with financial terms and techniques.

Excellent facility performance and a group focused on high service delivery and quality to make a powerful foundation to achieve the department's success within the firm, but at the end of the day, every organization is driven by money. The language, tools, and techniques utilized by finance teams are fundamental, and Facility Managers must understand and apply them. The financial knowledge of a Facility Manager must include terms like Immediate Liquidity Coefficient, Return of Investment (ROI), Net Present Value (NPV), Internal Rate of Return (IRR) and Return on Capital Employed (ROCE). This could be the most difficult topic for a Facility Manager to deal with. 

The process of registering, managing, and following up on building expenditures is essential to the department's funding and compliance with mandated reporting requirements. On the other hand, the same process provides essential information on trends, opportunities, and challenges that a Facility Manager requires in order to make effective and efficient decisions and to give explanations for any future action. As a result, Facility Managers must devote some of their time to learning the accounting systems in order to comply with regulatory requirements, budgets and to manage assets appropriately, and to produce financial information 

The work of cost budgeting and provisioning is vital for any Facility Manager. Fixed cost can be considerably cut by using unforeseen expenses. When firms are looking for cost reduction, a lack of understanding of these issues can cause major problems. By comparing historical expenditures to future costs, good financial management can assist forecast future costs. This is an important aspect of financial knowledge for Facility Managers to plan and make future decisions. Normally, enormous number of costs associated with buildings and their services. Hence, financial management should be the highest priority for any Facility Manager.

Reference: 

https://www.fm-house.com/en/financial-management-and-facility-managers/