Chapter 8: The operating levels of the finance function

• Insights provided by Financial reporting

  • All financial statements
  • Analysing the effect of changes in accounting standards on future financial performance
  • Dashboard of financial ration based on draft financial statements to predict share price
• Insights provided by Management accounting

  • Monthly management accounts
  • In depth analysis of variances
  • Real time monitoring of financial performances
  • Monitor KPI
• Insights provided by Treasury


  • Working capital reports
  • Advice on appropriate sources of finance
  • Predicting effect of future currency and interest rates
  • Predict demand for new shares
• Insights provided by Internal Audit

  • Analysis on the effectiveness of internal control systems
  • Monitoring and predicting the effect of changes to the business environment on the organisation
  • Analyse and quantify effects of key risks to organisation
• Financial planning and analysis (FP&A)


  Team that helps companies to set, monitor and evaluate their progress in achieving goals and objectives
• Insights provided by FP&A

  • Suggestions on how to use surplus assets
  • Verdict on overall financial health of company
  • Budgeting, forecasting, and data analytics to support major decisions
  • Analyse economic and business trends
  • Identify which products generate highest portion of net profits
  • Develop master budget
• Taxation


  Specialist tax experts providing support on all tax matters to minimise risk and create value
• Insights provided by Taxation


  • Impacts future projects will have on tax liability
  • Ensure correct tax treatment of transactions
  • Adapt to tax rule changes
  • Identify tax loopholes
• Project management


  Teams that work to ensure projects are delivered on time, with right quality and within the budget
• Stages of project management

  1. Initiation

  2. Planning

  3. Executing

  4. Controlling

  5. Review and close
• Initiation


  The need for the project is identified
• Planning


  Project plan is created covering communication and resources needed
• Executing


  The team performs their roles under leadership
• Controlling


  Progress, cost and performance are monitored
• Review and close


  Project signed off and team disbanded
• Project appraisal teams


  Analyse the financial and non financial aspects of potential projects
• Strategic partnering for value


  The concept of business partnering but on a senior level. Its role is to influence, support and achieve decisions.
• Strategic leadership of the finance function

  • CFO (Finance Director)
  • Senior Finance managers
• Attributes of the finance team

  • Knowledge
  • Skills
  • Experience
  • Balance of knowledge, skills and experience
• Knowledge


  Technical skills which are given by professional qualifications
• Skills


  Ability to perform a role or apply knowledge
• Experience


  Overall familiarity and mastery of particular area