As CEO / MD, you’ll know when you have to improve your finance team because the numbers side of your business just won’t feel right.
- You won’t be seeing reliable numbers in good time
- Routine work takes too long or just doesn’t get done at all
- Cashflow should be better
- Customers may be taking ages to pay
- Decision making is poor
- Growth is held back
A robust finance department isn’t just about number crunching; it’s about strategic financial management, risk mitigation, and informed decision-making.
If you’re concerned that your finance team isn’t meeting your business’s evolving needs, it’s time to take action and transform your finance team.
Where are we today?
You can’t change if you don’t know where you’re starting from so review and evaluate:
Staff Competency
Do your current team members have the necessary skills and qualifications? Are they up-to-date with the latest financial regulations and technologies?
Processes and Systems
Are your financial processes streamlined and efficient? Is your finance technology up-to-date and integrated with other business systems?
Strategic Contribution
Does your finance department contribute to profit improvement, strategic planning and decision-making, or are they merely handling transactional tasks?
Five steps to improve your finance team
1. Upgrade skills and expertise
Finance moves with the times, particularly the technology, but also new regulations and methodologies. So ensure your finance team are trained properly in how to do their work.
Hire experts, perhaps on a part-time basis. An interim FD / fractional CFO maybe just what you need for a while.
2. Embrace technology
Finance teams rely heavily on technology, usually cloud-based, so make sure you have technology that’s fit for purpose but don’t invest in apps just for the sake of it – every app must be useful.
Not all cloud-based accounting software is good at financial reporting. Make sure yours is and that you know how to get the right reports out of it.
Also, get on top of data analytics, such as Power Query and pivot tables to improve your insight. Sometimes you need to play around with data outside of the accounting software so people need to learn how to do it.
3. Streamline processes
Inefficient processes will hold your finance department back and reduce productivity. Streamlining these processes will improve your finance team, save time and reduce errors:
Automate Routine Tasks: Automation can significantly reduce the time spent on routine tasks such as invoicing, payroll, and reconciliation. This allows your team to focus on more strategic activities.
Standardise Procedures: Develop and implement standardised procedures for financial reporting, budgeting, and forecasting. This ensures consistency and accuracy. It also reduces risk and makes work much easier to review. For an FD and MD – this is a massive benefit!
Implement Internal Controls: Strengthen internal controls, such as bank reconciliations, oversight of supplier payments and margin reviews, to prevent fraud and ensure compliance with regulations.
Have you ever looked at Proof of Profit or appointed a Gross Profit Officer?
4. Communication and Collaboration
Ditch any silo mentality across your business – now!
Effective communication and collaboration between the finance department and other business units is essential for profitable business growth.
For sure, you need clear reporting lines and certainty over who is responsible for what. But numbers don’t exist in a sealed container, they exist because people create transactions and those transactions have measurable outcomes – across your business.
Sales, marketing, operations, HR and finance people need to produce, share, understand, discuss and improve all aspects of your business if it’s to move forwards.
5. A wider and deeper role
A forward-thinking finance department should be a key player in strategic decision-making. Foster a culture where finance professionals are involved in:
- Business planning
- Performance metrics across your business
- Risk management
Do you need help to improve your finance team?
We do this transformation work with many businesses of all shapes and sizes and this is what they say about us:
Blue Dot Consulting went above and beyond in helping us navigate not only the transition to cloud-based accounting but also in leading our accounts team through a broader period of transformation.
Can we help you?
Call Michael Austin on 020 7125 0270 or email info@bluedotconsulting.co.uk and let’s have a free-of-charge chat about your business and what it might look like if you can improve your finance team.
Michael – @bluedotmichael
Related links:
Customer timeline report – a window into the soul of your customers
Gross Profit Officer – appoint one today!
Why don’t businesses make better use of accounting software?
Chartered Accountants – Bedford House, Fulham Green, London, SW6 3JW
