How a modern day FC has changed from the traditional model.
The role of Finance, and everyone who works in it, has changed dramatically over the last 10 years. And the Financial Controller’s position has changed dramatically, for the better, to a much more strategic, tactical, and visionary position.
Two key areas form part of what every business and FC should be focussed on: strategy and speed. Unrelenting changes in business models, greater demand for information and squeezed margins mean that FCs are at the heart of your finance function making it the best it can be.
Financial Controllers support strategic business planning
It’s now not uncommon to expect Financial Controllers to be heavily involved in strategic planning, risk mitigation or management, and talent management.
Leading the day-to-day operations of a finance department means it is crucial to understand how strategic decisions affect operations and expected results.
Utilising your Financial Controller in a strategic position enables proactive planning of operational changes and role configurations within a finance department, and also forecast the financial implications of these things in the wider team. It also enables them to prepare and coordinate suitable reporting packs demonstrating the KPIs that drive business results.
Speed, speed, speed – the modern day FC supports financial automation
Automating repetitive tasks and accelerating existing processes is more important than ever. Big data is an overused term, but relevant and timely information is essential for any business owner or Director to make strategic decisions and outmanoeuvre their opposition in an ever-changing landscape
Many companies are still comfortable closing month-end in 10 days, but in order for any information to be useful this timeframe has to be reduced to no more than 2 or 3. Utilising a Financial Controller to accelerate those timelines through six sigma or lean methodologies, automation or simply common sense is essential to create impact. Impact to adapt to real time events quickly.
A Financial Controller can adopt four duties across your business, which of these you choose will benefit you in different ways. But we think a combination of these deliver the best results:
Stewards manage risk and protect the company’s existing position.
Operators focus on optimising the efficiency and efficacy of financial operations.
Strategists provide insights, oversee risk management, and contribute to the company’s future direction.
Catalysts act as drivers of change, focussed on results and execution.
Adapting your business and ways of working to allow more trust in your Financial Controller and Finance Team will yield much better results.
The quicker you ask them to supply more and help them adapt to do so, the quicker your business will reach its goals.