Data provided by the finance team has always been important in the running of a business. In the last few months this information has proven vital for survival and success. Many finance teams have increased their reporting from quarterly to weekly and sometimes even daily for certain data. Being able to adapt quickly is important for the success of any business. The information provided by finance teams allows for strategic discussions regarding the future of your business and for informed decision making to be established quickly.
A good finance team will take the time with the initial data to make sure it is cut in such a way that it presents clearly the information you really care about seeing. Once these initial reports are set up with the right systems in place this can be largely automated and then provide real time updates of how your business is faring.
Finance teams have been an indispensable resource over the last few months for providing leadership teams with information on what a business needs in order to protect it. They ensure that the right infrastructures are in place to easily present a view of how profitable and stable your business is now and in the future.
Alongside real time data, forecasts are also incredibly important in protecting your business as they allow information on slows or stops in cashflow. This enables your finance team to plan how they handle debtors and also put a plan in place to build up your cash reserves for such a situation. A good finance team will work seamlessly with other areas of your business to help inform their plans e.g. credit control should work closely with sales to inform a complete view of the customer, which in turn will impact further selling activity.
Good finance teams should have financial modelling capabilities to enable owners to run scenarios and support contingency planning. These models are an essential tool for creating a clear picture of how different outcomes could impact cash flow, revenue and profit.
If you don’t have a full finance team in place, outsourcing can be a good option for many businesses. An outsourced team will have already gone through the process to ensure that you have experienced and knowledgeable people in place from day one offering an outside perspective and often saving you time and money in the long run.