The Purpose of Finance is to create an informed environment that is able to create, analyze, and advance planned and forecasted results. Experienced leaders expect the following from their office of finance:
• Probability of Forecasts
• Emotionless, Rational Analysis
• Navigate: Cost & Growth
• Partnership & Collaboration
People think we’re giving away our service…
The first three characteristics speak to the discipline of Financial Planning & Analysis (FP&A). This discipline must be neutral, unbiased, and organized in a manner that allows objective truth telling to reveal issues and opportunities in a rational way. Finance teams must understand the need for growth investment and cost cutting benefits at the same time. A maneuver that requires focusing on steering toward leadership’s vision while maintaining a steady hand on the rudder of budgeting. “Partnership” means there must be trust and incentive alignment to deepen and strengthen the relationship with leadership. And teamwork throughout the organization structure to enhance and support everyone will bring exponential benefits.
What Should I Deliver?
Finance leverages many disciplines such as accounting, bookkeeping, operations, process management, and more increasingly, data management, analytics, and visualization. A strong finance team should be relied upon to deliver:
• Plans & Projections
• Evaluate Trends & Variances
• Evaluate Complex Investment Decisions
• Determine and Increase the Value of of the Business
• Assess Acquisition Candidates or Position the Business for Future Purchase