In the recent years, the number of companies involving a finance team for playing a major role in their business has increased significantly. This is not surprising as finance teams make a great impact on the business and its annual profits. They help you choose which risks to take and which ones to avoid. This helps ensure that your business does not end up making a terrible decision that could cost you a fortune. Besides this, they also help manage your taxes and investments which makes them an integral part of any organization. However, these finance teams sometimes do not perform at their peak or may not give you everything they have to offer.
So, here are some key ways to make the best of your finance team:
These are some core responsibilities of your finance team and include tasks relating to accounting, auditing and budgeting. This department is important as it controls all the other ones in your business and are supposed to manage overall financial efficiency. Their tasks mostly relate to compliance and minimizing existing costs.
This task usually is a response to requirements that new businesses have such as growth, acquisitions, market value and growth. The main goal of this department is to manage the efficiency and costs of growing businesses.
The services department needs to provide better financial insight on business decisions and on involving customer retention data. This is often done by the use of advance analytics.
FT or Finance Transformation can be loosely defined as “strategic initiatives aimed at improving finance within a company”. It may involve a range of tasks relating to company finance. These may include things like reducing the period of a budget cycle or adding a new accounting software or even something basic like reducing overhead costs.
The primary goal of FT is to align financial planning into the overall company strategy. This helps the company become more efficient and provide better customer support for its loyal customers.
Limits and Hurdles
Even though FT is an extremely efficient step towards improving the progress of a finance management team of a company, it encounters various hurdles towards successful growth. These are:
Sole focus on costs
This is ironic as managing costs is what a finance team must to. However, only focusing on costs can leave the team unprepared for an evolving business.
Chasing universal customer satisfaction
Trying to please everyone is a futile goal and must be avoided by the finance team.