Finance professionals know how to make money

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Every action and reaction in a business can be traced back, in the end, to cash. As the function responsible for accounting for this cash, finance has a privileged perspective on the whole organization. The complex interplay of strategy, execution, and money-making are transparent to us, a unique view that gives us an unfair advantage.

Finance professionals can see how this information is used both internally and by third parties and external stakeholders. Within the business, the transactions that flow through our hands month by month show us the impact of strategies on success. We can see how sales grow over the short, medium, and long term through investment in production and promotion, or how changes in the supply chain impact the bottom line. Externally, we manage reporting in line with all manner of rules, regulations, and accepted practice, giving us an insight into how the consequences of internal strategy will be interpreted by stakeholders from banks and investors to industry commentators and regulators.

These are not just paper exercises. Finance professionals learn the mantra “Cash is King” in their first semester of business school. We can trace every transaction through debits and credits to cash, and we can see the strategies that succeed and those that fail to generate the necessary returns.

In short, we know how to make money.

Finance is at the heart of strategy

If finance has a transparent view of strategy and success, then strategic decision-making needs the finance function in the room. Every element of strategy has its own ripple effect, spreading out beyond the initial impact. As finance professionals, we can see the very edge of those ripples in the transactions we process, and we can trace them right back to the initial execution of a board decision. Once all of this knowledge is put into context in the day-to-day running of the business, we can flip our viewpoint and help to make the decisions that will have the most positive far-reaching consequences.

The importance of context cannot be underestimated. The finance function has a historical reputation of caring only about the numbers. This is largely undeserved, but it’s true that our regular view of transactions is more like the binary code of the Matrix films than the vibrant virtual world. We need to see and experience the business itself, understand the people and the places behind the transactions, and discover the nuanced impact of decisions and the barriers that staff might encounter in achieving success. We make money through our holistic view of the business combined with a depth of detail that only finance professionals can achieve.

Making finance make money

What are the key things we need to do to take our place at the heart of strategic decision-making?

1. We have to look at the transactions processed through the finance function in a new light. Take a moment to understand where they came from, and how they have been influenced by strategy and environment.
2. Finance professionals have a wealth of data at our fingertips - let’s use it to make money. How far do the ripples spread? What changes can we recommend right now to add to the bottom line? What is the impact on reporting to external stakeholders?
3. Communication with our peers at the decision-making table is critical. They need to know that we understand the path from strategy to cash.
4. Context matters. We have to step outside our comfort zone and spend time in the business. By doing this, we can seek out the granular differences between departments, production lines, and staff, and understand how we can support non-finance professionals to manage the burden of record-keeping and build great decision-making data. These things can impact the numbers in ways we never imagined.

When it comes to making money, finance professionals know the score. This is one of the unfair advantages of finance - and one that benefits everyone.?

To earn your place at the table, take that first step now. What is the first piece of knowledge you will share with your operational colleagues that puts you on the path to making money?

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This was the second article in my series "Unlocking the unfair advantage of Finance". You can read the previous article(s) below.

It's time to unlock the unfair advantage of Finance

If you want to learn more about how finance professionals can influence decision-making then check out my latest article series "The Art of Decision-Making" below.

The ultimate guide to decision-making for finance professionals

Do you understand how you make decisions?

Do you make decisions or do you influence them?

From influence to impact - the hardest part of Finance

The art of improved decision-making explained

If you want to become a better business partner, consider?taking our online course "Business Partnering Explained - Value Creation Unlocked " to get a better handle on the role. It's accredited for 5.5 CPD hours.

You can read a lot more articles about FP&A, Business Partnering, and Finance Transformation below. It all start's with “Introducing The Finance Transformation Nine Box ”?where you set the ambition for your transformation. You should join the?Finance Business Partner Forum ,?which is part of the Business Partnering Institute's online community.

The Mindset Change Checklist For Finance Professionals ?(the last article in a series about the mindset change that finance and accounting professionals should make to become business partners)

It's Time To Decide If You Want To Be A Business Partner ?(the last article in a series about the personality traits of business partners)

All Successful Business Partners Are "Leaders" ?(the last article in the series about our new capability model)

Should We Keep Talking About Business Partnering? ?(part of a 17-article series where we deep-dive on the WHY, WHAT, and HOW of business partnering by putting it on a formula)

Your Journey To Successful Business Partnering Explained

How To Create Value Through Business Partnering

Everyone Can Adopt A Business Partnering Mindset ?(part of a six-article series about FP&A Business Partnering)

From Business Partner To Working Within The Business ?(part of an article series where I interview finance professionals about their careers in FP&A and Business Partnering)

Is Your Product Optimized For Value Creation? ?(part of a toolbox series where we look at what tools FP&A professionals should leverage to drive value creation)

How Business Partners Turn Analysis To Insight ?(part of case study series where I interview business partners about how they drive value creation using real cases)

The Future Of FP&A: Two Ways To Take The Reins

What Is The Accounting Profession Paradox?

What Defines A Finance Master?

The New Career Path For Finance Professionals

How Finance People Can Be More Successful

The CFOs Roadmap To Transforming Finance

How To Become A Finance Business Partner

Financial Analyst vs. Finance Business Partner

Finance Business Partner Is A Bullshit Job

How Business Partners Keep A Plan On Track

Anders Liu-Lindberg ?is the co-founder and a partner at the?Business Partnering Institute ?and owner of the largest?group dedicated to Finance Business Partnering ?on LinkedIn with more than 10,000 members. I have ten years of experience as a business partner at the global transport and logistics company?Maersk . I am the co-author of the book “Create Value as a Finance Business Partner ” and a?long-time Finance Blogger ?on LinkedIn with 60.000+ followers and 140.000+ subscribers to my blog. Recently I became an advisory board member at?Born Capital ?to help identify and grow the next big thing in #CFOTech.