Traditionally, finance has been seen as the back-office support for handling numbers and reports, but times have changed. Today's finance professionals, especially finance BPs (Financial Business Associates), need to have a deeper understanding of every aspect of the business than ever before.
Let's recap how Huawei's Ren Zhengfei illustrates this role shift. He pointed out that finance people without business knowledge are like ships without a compass, which will only make the business less efficient. Financial personnel who have a good grasp of the company's operations can point out the direction for the enterprise and accelerate operational efficiency.
Ren Zhengfei emphasized that financial personnel should be integrated into the business: "All financial personnel who are not familiar with the business must find time to learn Xi business, and all business personnel must know the finance and economics, so as to make the weft management excellent, and the weft will be connected, so that our operation efficiency will be accelerated." Only by knowing who to serve can we truly provide valuable services and deeply understand the meaning of financial services. ”
How can Finance BP help companies set their course for success?The key lies in three directions:
First, devote yourself to project management. By participating in project management, Finance BP is able to understand every stage of the business cycle, from initiation and execution to closing. This process allowed Finance BP to gain valuable front-line experience and deepen its understanding of how the business works.
Second, actively participate in business analysis. This requires finance bps to look beyond budgets and reports to uncover the actual business dynamics behind the data, such as market changes, cost efficiencies and process optimization. After the analysis, the financial BP needs to put forward constructive suggestions to help the company identify improvement measures and move forward.
Third, intervene in the budgeting process。Budgeting is no longer a rigid numbers game, it is connected to every business activity and decision. In doing so, Finance BP not only needs to be financially accurate, but also works closely with the business to ensure that the budget is both realistic and forward-looking. As a result, budgeting is a powerful tool for foreseeing the future and guiding the right allocation of resources.
Driven by refined management, Huawei proposes that financial personnel should have "five understandings":
Understand the project,This means that the financial BP needs to be an expert in project management, understand the changing requirements at each project stage, and carry out flexible resource allocation and cost control accordingly.
Understand the contract,The financial BP should be well-versed in the terms of the contract to ensure that the interests of the business are protected in the commercial agreement and at the same time avoid potential financial risks for the business.
Understand the productProduct knowledge is the cornerstone of cost and profit analysis in financial BP, and only by deeply understanding product characteristics and production processes can we effectively carry out cost control and value evaluation.
Understand accounting,From accounting standards to internal controls, finance BP needs to ensure the accuracy and compliance of business processes and financial records.
Understand performance,Finance BP should not only focus on the financial performance of the project, but also design a reasonable performance management system to motivate the team to achieve the goal, and it is also the driving force for continuous improvement**.
Integrating into the business doesn't happen overnight, it requires constant learning and adaptation Xi finance BP. For example, when participating in project management, finance personnel need to understand the human resources and funding arrangements at different project stages, and dynamically adjust budget allocation to support the smooth progress of the project. At the same time, they need to have an in-depth understanding of the payment terms in the contract, which is critical for cash flow management and risk control.
In terms of understanding the product, financial BP requires an understanding of the product's life cycle, market positioning, and its impact on costs and profits. These are not covered by traditional financial reporting, and finance personnel need to take the initiative to go deep into the business and work closely with other departments.
In order to take full advantage of "knowing accounting", Finance BP needs to continuously improve its professional knowledge and familiarize itself with the latest accounting standards, tax law changes and compliance requirements to ensure the accuracy of the company's financial reporting and provide a reliable basis for the company's decision-making.
In terms of performance management, financial BP should build and improve the performance evaluation framework, which can help enterprises clarify goals and quantify performance, so as to adjust strategies in time when performance is poor. Finance BP can also help companies identify potential growth opportunities and areas for improvement through performance data analysis.
The role of financial BP is not only the application of financial knowledge, but also the in-depth participant of the business and an important contributor to strategic decision-making. In this role, financial experts can better serve businesses and help them make more informed decisions by having a deep understanding of the business.
Profile of Mr. Dazhi.
He is a certified tax agent in China, a senior accountant, a senior financial and tax consultant, with 18 years of practical experience in financial management.
He has served as the financial director and manager of Internet listed companies, head e-commerce companies, top 500 manufacturing companies, logistics and other group companies, with a broad vision and solid financial skillsHe has accumulated rich practical management experience in the fields of enterprise financial and tax structure construction, financial accounting, comprehensive budgeting, business analysis, business and finance integration practice, tax planning and other fields.