In our September blog – Redefining the Role of the CFO – we drew an Olympics analogy: a team’s success depends on the contributions of every member. Incomplete teams simply can’t compete with those that are well-rounded. This fact rings true in the business arena, as well. When an organization circumvents a specific position – specifically the CFO role – it cannot achieve the desired business outcome.
Another parallel is that businesses and Olympians adhere to routines as they rotate through their cycles. Time is carefully carved up into stages, including preparation, competition, and the all-important post-game wrap up. Athletes and trainers convene for a replay of events to discuss the peaks and valleys of each performance. They glean wisdom by reviewing past events but then they turn the page and prepare for the next event. Likewise, after certain events, business leaders examine what worked well and what needs improvement as they march forward.
As we move into the fourth quarter, this is prime time for organizations to reflect on their processes during 2021. Many organizations have already left the starting blocks – they are getting a head start on tying together their business processes to avoid a last-minute scramble in December.
It’s not only bad actors who can inflict harm – an employee can unintentionally make one error that will send shockwaves through an organization. Leaders realize the importance of protecting their assets but in many instances, taking the time to clean house can be pushed to the sidelines.
Getting your fiscal house in order is easier if you have a year-end checklist. Below are topics that you will want to include.
● Risk Compliance Assessment: By periodically conducting a risk assessment, you will discover your areas of weakness – whether they are internal or external. For example, fraud is prevalent in most industries. In extreme cases, companies can suffer a several financial loss and irreparable damage to their brand.
● Tax Compliance: Tax codes and new legislation are fluid and demand attention. Keeping current with regulations is essential to ensure you adhere to the latest releases.
● Cybersecurity: No sector is immune from sophisticated cybercriminals. They only need one person to open a phishing email to invade your perimeter. Even within a traditional office, digital work has introduced a new level of risk. It is significantly elevated when people are working from home in an unsecured environment.
● Financial Management: To improve financial management, you will need to widen your focus, as it transcends budgeting and forecasting. Organizations that still rely on legacy should consider taking the quantum leap to automation.
● Leverage Technology: The race to invest in new technologies has accelerated, as companies are discovering that efficient and accurate financial controls are time and cost efficient. Currently, there is a heightened effort to automate and integrate these processes into their existing ERP systems: project management, HR, marketing, and time-management.
The topics highlighted above are just the tip of the spear; a multitude of other issues must be examined to ensure your business is operating at optimal levels. An expert CFO advisory team is ideal, as they can conduct risk assessments, ensure tax compliance, detect red flags in your infrastructure, and enhance your financial management. An astute CFO advisory with deep industry insights and expertise can accomplish this by leveraging technology.
In the past 18 months, businesses have faced many factors outside of their control but there is one facet within your control: ensuring business compliance. If you want to discover how you can benefit from CFO Advisory services, give us a call. We will ensure you can wrap up all your compliance issues – before the new year.
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