How do you know if your current Finance structure and capabilities are sufficient, or if it’s time to upgrade or make a change to your talent?
Following tips describe how people, processes and systems in finance can cause fuel when it comes to company’s growth.
1. Key Metrics, Data & Insights – Finance should not report just data and information to management & business partners. Finance should turn data into actionable insights and foresights by leveraging analytics to answer what’s going to happen and how can we make it happen in the form of actionable, integrated and future oriented KPIs (ensuring maximum forecast accuracy).
2. Leadership Team Meetings – Finance should provide all the relevant information to the business lines before the meetings, so the time spend during the meeting is to distill insights into actionable intelligence. It’s not possible for finance to generate insights by sitting in the finance or accessing the ERP, it should be discussed with the business partners in these meetings and then leverage analytics to generate insights as mentioned in point no.1.
3. M&A Deals – If company is opting for inorganic growth via mergers & acquisitions, finance leader should ensure that (apart from financial plan) there is a playbook with a plan to integrate teams, systems, culture etc.. in order to avoid any frictions & ensuring how you are going to unlock the value. Usually, accounting & finance teams are less involved as dealmakers don’t want finance slowing down the process, adding due diligence & potentially kiboshing the opportunity,
4. Systems & Processes – Some companies need small army to reconcile between business systems, ERP & excel reports and tremendous time is spent on these low value activities, causing errors as well and leaving less or no time for finance to contribute in high value activities. Companies having modern finance stack with business intelligence and advanced analytics enables them to grow their revenue say 115% while growing their headcount in Finance by just say 15%. Their business leaders can look at data visualizations and variances themselves in real-time. Their ERP has machine-learning capabilities which allows us to reforecast in a matter of minutes, which is something that used to take weeks in the past.
5. Fundraising – With lack of rock solid financials, it’s extremely painful for management to tell the story, as it takes a significant amount of management time and took people away from the day-to-day to get the data, build the deck and tell the story with the CEO. Solid financials makes your fundraising process much more painless and can actually impact your valuation because it gives potential buyers incredible confidence.
6. Finance Team Development – Most important strategic assets of any organization is people and same applies to finance organizations. Learning & development programme to upgrade the skills of finance teams is necessary to support overall business growth.
Author : Muhammad Zeeshan Taqi
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