The professionals really should engage themselves into the business planning not only simply doing the Audit / Accounting / Taxation, their contribution is required to integrate all the department in order to identify the derived contribution on spending even single rupees.
They should not act as a fear factor to the other department, they should approach each and every transaction from all the aspect and aware the concerns to identify the risk associated behind, advice to overcome those risks in order to achieve business potential goals.
The entire accounting system is working to support only to the business, if the business is grown then only the survival of this accounting body is ensured. So there is no limit / boundary for the F/A department employees. There should realize they are the backbone to the company growth.
The Finance / Accounts department professional should provide fruitful MIS not only to MD/CEO, they need to give to all department heads in order to improve their contribution. Because the F/A is having entire recording data and documents, from their profession they know how to analysis the data from financial point of view.
Example
- Contribution for new appointment of person.
- Suggestions for purchase source alternative.
- Asking reason for increasing the current assets from all the department.
- Analysis the gap of deviation between potential growth and achieved growth
- Discussion on alternative business ideas.
- Industry comparison to improve the standard.
- Strategical planning to analysis the incremental cost on each activity. That is Just mealy implementing the cost-cutting policy indiscriminately should impact on reverse side, the detailed analysis is important before implementation.
Example
- Analysis of Incremental cost i.e. if you reduce the cost Rs.10, the benefit will get reduce Rs.15
- Identify real contribution of such activity for which you are reducing the cost.
- Down line suggestion is important for all the decision, rather than desk work decision.
Work in field
If you are the real financial manager, please don’t do the table work, run around the company & work in the field to identify the things where the cost is being under absorbed /over observed.
Discuss with technical persons to improve the utilization at 100% whatever you are spending.
In an organization, one single person’s could not improve the company and one single department could not achieve the goals, the team coordination is important this should emerge from the F/A department.
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