Finance directors shift focus to beat recession

News Article - 04 December 2009
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A recent survey suggests the focus of finance departments has shifted dramatically due to the recession, and may have changed permanently. The survey, commissioned by Cashflow Confidence, questioned one hundred financial decision makers from FTSE 250 companies regarding their priorities for the next financial year.

The results of the survey suggest financial departments are ‘unrecognisable’ from a year ago because FDs are increasingly committing resources to tactical goals. Questions concerning their business objectives suggest a decline in the strategic role they previously played. Tactical objectives, such as cost saving and improving cash flow, are now seen as the best ways a business can achieve their financial objectives over the next twelve months.

Evidence suggests the tactical goals adopted by finance departments have helped businesses cope with the financial strain brought about by the credit crunch. 88% of survey respondents said they were either confident or extremely confident that new measures would help them improve cashflow. 96% reported a belief that their finance department would meet its financial objectives at the end of the next year.

Ian Little, Finance Director at Access, believes a tactical focus can benefit financial departments during the credit crunch, but must not be implemented at the expense of their strategic role.

“Financial considerations are inevitably at the forefront of decision-making,” explains Ian. “However finance departments must retain a close link to other departments involved in the decision-making process to ensure strategic decisions are made with full financial disclosure in mind.”

To ensure the finance function don’t lose their ability to provide strategic support in the decision making process, the right systems must be in place so information can be processed and shared easily. With reduced time available for strategic objectives, finance departments will increasingly benefit from an organisation-wide business and accounting software solution that automates both major and minor processes, reducing the time spent completing manual administrative tasks. Many advanced solutions are designed with this in mind.

Workflow forms software from Access, for example, can create an electronic version of any offline form, such as HR forms or health and safety forms, which can automatically be sent to staff and managers to fill in extra information or to be authorised. Other solutions, such as those for project management and service management automation, ensure that all data is kept in once central location and provides increased visibility and information on demand. This means projects will be invoiced quicker and transactional information that was once held in spreadsheets more readily available for analysis, providing the FD with a more accurate financial status on the business. Using dashboard reporting tools, he or she can also view any new data in real time.

For FD’s looking to expand the tactical role of the finance function, or to solidify departmental links and streamline the decision-making process, they stand to benefit from an organisation-wide business system. It provides the time and the tools necessary to help the FD – and the business as a whole – achieve their goals.

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