What CFOs Need to Know to Reach Financial Analytics and reporting Success?
Financial reporting and Analytics provides an accurate and reliable financial information to both the internal and external stakeholders to help them make better decisions. As a part of good governance, the CFO of the company should fulfil the responsibility of maintaining sound and ethical financial management along with reporting, also striving for efficient and productive use of resources and also maintain necessary skills, qualities, and professional standards.
Thus financial analytics and reporting helps in undertaking the review plan of financials, detailed analytics and also preparation of financial reports. The performance is evaluated through industry trends, ratios, comparisons, scrutiny etc. The proposed financial analytics and reporting shall include unified processes which helps in understanding true value added insights, trends, opportunities etc.
Benefits of Financial Analytics and Reporting
- Helps in developing transparency in the business performance of the company through its functions
- Market trends: through analysis and reporting there comes a clear image of the market trends that are prevailing
- Financial analytics and reporting helps in financial restructuring of the company.
- It determines the forecast of future growth and prospects and also helps in the reducing the cost of products and services offered.
Why the Role of CFO is vital in MIS And Board Reporting?
The basic role of MIS (management information system) is to focus on the information relating to organization and also technology systems. It analyzes the problems of the business and prepares designs and maintains computer applications to solve the organization's problems. On the other hand, board reporting is an effort to streamline the financial reporting process and providing the directors a meaningful and timely financial information. It is preparation of a complete checklist for senior management defining the key performance indicators. Thus, it is consolidation and redesigning of financial reports, financial analysis report, investment report, budget report etc. thus this involves both external and internal reporting through preparation of detailed MIS reports.
How sustainability has expanded the CFO’s role towards Investor relations?
In the functioning of a Public company, there is a responsibility for managing and communicating information to the public in aspects of Company's operations, managerial organization and financial standing. Investor relations is a department in itself which is devoted in handling inquiries from shareholders and investors also for the potential investors interested in company's stocks or financial stability. An effective CFO possessing a wide range of experience can help in the process of wide range of investor relations services thereby assisting in undertaking detailed interface with investment analysts and other parties that represent institutional investors. A CFO helps in assisting in preparation of various investor presentations, publishing of research and opinions regarding public companies which influence the investment community.
The functioning of a CFO complex investors demands, such as assessment and implementation of MIS reporting structure. The company's finance team helps in generating MIS reporting structure, MIS reports from their accounting software. A proper training program is held for the finance and accounting team in this reporting accurate financial, data and knowledge. It also serves as a guide in recommending the investors on the key areas to seek comfort from the auditors of the company.
Our CFO Support services in relation to investor is responsible for:
- Identifying the issues of investors and informing the management about these issues.
- Setting up of annual calendar of events to meet with the shareholders of the Company (preferably on location) potential investors, meetings etc.
- Keeping the track of the investor base (databases, external compliance's etc.).
- Analysis of market and company data.
- Ensuring of the information about the company to investors in a well-defined, transparent, consistent and reliable manner.
Beyond reporting – developing the CFO role to create value in SMEs& Developing a sound Turnaround management?
Turnaround management is a dedicated towards corporate renewal. A CFO's duties are to do analysis and planning to save the troubled company and also to find reasons for failing performance in the market and rectify them. Thus, when companies suffer troubles relating to cash flow crises, major losses etc., they require a financial professional to handle the turnaround requirements. There is an outline of steps involved and good understanding of this process will make it easier to identify when applied
What is Turnaround management?
In this process, a clear definition of performance problems are defined and outlined. It helps in identification of the areas of financial stress within the business and steps to be taken.
Strategy to be adopted in effective Turnaround management
once the business is stabilized, it is time to commence the strategic planning process. Also the SWOT analysis shall be done. it is important stage to look internally (strengths and weaknesses) but also to strategically analyses the external environment (opportunities and threats) as well. From SWOT analysis, the long term vision, mission and objectives for the business can be defined. Knowing where the business is heading then allows the development of a strategic plan.
Action and implementation:
the next step is development of action plan. The tasks are the daily, weekly and monthly activities to be done and with this strategic planning process, each one will be contributing to the overall mission. Without the implementation step, all the planning can go waste. It is important that employee are aligned with the overall vision for the business. This is achieved through communication, consultation on regular basis by the CFO of the company.
Review on Existence of turnaround management
the regular reviews are considered after the planning and implementation process. In effect the process of turnaround management is quite similar to the strategic planning, however there are some distinctive areas of stress. For upcoming of this stress, the consultation of turnaround management is required.