As an owner or executive, what would you like most out of your finance function? This is a simple question, but answers vary significantly based on several factors such as the size of the business, ownership structure, industry and culture. Most owners of small and medium sized enterprises (SMEs) talk about cash position, reliable accounts and timely information. However, many have not spent a significant amount of time defining exactly what they want and ensuring there is a roadmap to get there. Instead, they are rightfully focused on more strategic, commercial and operational matters. But understanding what you want from your finance function – and what you should get – can quickly turn your finance function form a repository of accounts and mildly useful analytics to a strategic function that gives you the tools and business insight to drive your business forward.
Rather than view your finance function as purely a back-office tool, I would urge business owners to view it as a strategic and commercial edge that serves to put you a step ahead of the competition by delivering you the insight you need to make the best decisions. You’d be surprised how many business decisions are made without backing (or even knowledge) of the finance function, and this elevates the risk a business faces exponentially.
If you’re convinced by the above, what can you do about it? Engaging experts to perform a rapid assessment of the effectiveness of your finance function is an excellent starting point. A well performed assessment of your finance function can identify significant gaps and help you create a roadmap for change. More specifically, it can ultimately result in:
1) Improved financial management and reporting
2) Identification of inefficiencies
3) Better financial controls and reduced financial risk
4) Strategic financial insights and alignment with business objectives
5) Enhanced decision making
6) Building capacity in your finance team
7) Increase shareholder and other stakeholder confidence
8) Increased support for business transformation and expansion
Transforming your finance function begins with a proper assessment of what it is doing well and, more importantly, what it can do better – or start doing. Relying on your own internal function to tell you what’s wrong with it or how it should improve will yield spotty results at best. For more information feel free to contact us.
