A common perception exists that the Finance and Admin function of a company is only a cost centre and its sole purpose is to record, report, repeat. Many of our finance professionals and staff are constantly stuck in trying to keep the records up to date or trying to put out the next fire, which leads to finance functions not being able to spend sufficient time on analysing the financial information, predicting trends and being able to predict a cash flow shortage in the future.
We have noticed that many finance departments are so busy being busy, instead of working according to a structured plan and methodology, which could eliminate some of the following symptoms in your business:
- Month-end takes very long to complete and the directors and shareholders are not comfortable that they are able to trust the figures which have been reported;
- Staff are uncertain what their roles and responsibilities are and processes are over complicated and takes long to complete;
- The business is not able to facilitate strategic and business decisions due to outdated information or inaccurate information;
- Staff in your finance function are unsure of what is expected of them and unsure how they will be measured in terms of performance management;
- The business relies excessively on Excel spreadsheets and does not utilise their technology and accounting software to automate routine tasks;
You might already have experienced a few indicators of an ineffective Finance Function but have been unsuccessful in accurately pinpointing the exact area that needs to be improved.
We have developed a detailed Finance Function evaluation which can assist you and your business in easily identifying the opportunities for improvement. If you can identify any of the symptoms which we have listed above, then you are welcome to contact us to discuss how these symptoms can be rectified.
We cannot solve our problems with the same thinking we used when we created them – Albert Einstein
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Occupying a role in a finance function can be stressful due to reporting and month-end deadlines, but with the recent ever unfolding effects of Covid-19, employees are demonstrating...
As a business owner, your operational concerns include security and the protection of personal information. The Protection of Personal Information Act or POPIA, came into effect 1 July...
Specialised Trust Accounting Services and assistance is just one of the valuable services we offer our clients. We pride ourselves on reliable and up-to-date trust accounting and...
Let us assist you with:
If you found this information helpful, contact us now for help with your specific needs