The CFO office should function as a source of process improvement ideas; as well as business development recommendations. It is in this location where production data meets financial data. It is expected that your CFO will perform the necessary analysis to understand why actual results differ from Plan results. But the analytical process does not stop there.
By comparing actual results between you and your competitors (benchmarking) or comparing activities within different regions of a company, you should be able to identify variations in revenues and expenses. There may be perfectly good reasons for the disparities, but the questions must be asked. More often than not, differences will be explainable. But if not, you may have found a process that needs improvement to save the company real dollars.
This analytical discipline is also needed when considering new products and services, or expanding the distribution of current products and services. The initial concept review is performed by the CFO – analysis, modeling, and planning. Once approval is provided by the CEO, the CFO will pull in the affected departments, to implement the plan, i.e. HR, IT, Compliance, Legal, Sales…© Copyright 2012 Regis Quirin, All rights Reserved. Written For: CFO Tips - What you need to know, to be a CFO TODAY!