6 things Finance can do better to transform business
Traditionally finance teams support multiple business functions and help them run smooth and improve their efficiencies. Knowing its role and the impact it has on the business, finance functions can do better and change the way the business is done for better.
Perhaps, the most important function, finance teams provide timely intelligence and advice with their business understanding and information.
Product Mix .
Pricing decision, Volume discount/Rebate .
Sales Channel Analysis – Direct selling Vs Leasing Vs Distributors .
Customer Account/Territory/Salesperson planning .
Investment ROI Analysis
Demand Forecasting, Manufacturing and Cost Analysis .
Ad-hoc reports of the past performance.
Depending on the company strategic planning is done for a 3–5-year period and budgeting is an annual exercise. By providing and adjusting the right data and insights, Finance teams can challenge and influence the sales performance .
Part of the budgeting, forecasting will continuously adjust the plan to conditions and provide right explanations for the actual variance.
As custodians of business data, Finance teams assume leading role in designing the business intelligence for the company. This is critical for making sure accurate and timely intelligence is provided across the company consistently.
Finance teams work with multiple business teams, for example, with sales teams to collect the receivables from customers, with acquisition teams to make on-time goods receipts and payments, with employees for on-time expense reports.
Accounting in accordance with compliance standards and closing the books on time with consistent reporting practices avoids fines and improves investor’s overall confidence in the marketplace.