Souters Training’s Post

A popular misconception is that everyone who chooses a finance role is ‘just an accountant’ however professional finance roles are now very diverse as they’ve adapted to, and evolved with, technology, generationally complex workplaces, and a challenging economy. Check out the various pathways in the world of finance today. #finance #accounting #cfo

Transactional Finance Vs FP&A – What is the difference?   FP&A, or Financial Planning and Analysis, is becoming an increasingly popular career route amongst candidates, but do you know the difference when compared to the more traditional accounting methods? How could this impact your recruitment? Stereotypically, the role of an Accountant is often considered to be more of a heads-down role, with the introduction of FP&A, I would argue this is not the case. The traditional and more transactional side to the role remains incredibly important to employers, as it is vital that reporting deadlines are not just met, but also that accounts are accurate and meet compliance requirements. These duties typically have more of a focus towards the historical performance of the business and are quite process driven. In addition, the relationships that are built tend to be with more external stakeholders and the finance function can often feel separated to the rest of the business. By contrast, the tasks associated with the FP&A function have more of an emphasis on the future performance of the business, and include: variance analysis, budgeting, and forecasting. This can provide internal stakeholders with vital financial insight to positively impact profitability. Individuals can be partnered with various parts of the business to look at operations, sales, or marketing, and those who can communicate the financials effectively, can be very valuable to the business. Whether you are a candidate or a client, understanding the difference between the two is incredibly important. Skillsets can suit some tasks better than others, and if you require someone to come in and handle the day-to-day finance function, you need to be sure this matches their strengths. Likewise, if you are looking for an Accountant to drive performance through financial analysis, they need to have the ability to be a storyteller and simplify financial data for your non-finance stakeholders. While the above outlines many of the differences between transactional finance and FP&A, there is a real demand for both if you are looking to optimise the performance of your business. From a candidate’s perspective, the ability to add that personal touch when working within FP&A can make these roles more attractive - a trend I have picked up on over the past 6 months. I am seeing FP&A vacancies more frequently, and am currently working with several businesses looking to grow this part of their finance team. If you are considering adding to your existing finance team or want to discuss the current needs of your team, please feel free to reach out to me on LinkedIn or give me call on 01223 803055. #financerecruitment #Transactionalfinance #financialplanningandanalysis #financejobs #accountancyjobs

The post compares Controllership, Financial Planning & Analysis (FP&A), and Strategic Finance, outlining the key differences and responsibilities of each role within the finance function of an organization. Here are some insights and comments on the distinctions mentioned in the post: 1. Controllership: • Focuses on accounting and financial reporting, ensuring accuracy, timeliness, and compliance with accounting principles. • Roles include Controller, Assistant Controller, and Accounting Manager. • Competencies involve accounting, financial reporting, budgeting, forecasting, internal controls, and regulatory compliance. • Key relationships with other finance functions and departments like operations, sales, and procurement. 2. Financial Planning & Analysis (FP&A): • Concentrates on providing insights into financial performance for strategic decision-making. • Responsible for guiding strategic business decisions based on financial data and analysis. • Roles include FP&A Manager, Financial Analyst, and Budget Analyst. • Competencies encompass financial modeling, data analysis, budgeting, forecasting, strategic thinking, and communication. • Key relationships with other finance functions and various departments to support decision-making. 3. Strategic Finance: • Emphasizes long-term financial planning, investment decisions, mergers and acquisitions, and capital raising. • Provides insights into strategic financial matters and opportunities for the company. • Roles include Director of Strategic Finance, Corporate Development Manager, and Treasury Manager. • Competencies include financial analysis, strategic thinking, investment evaluation, mergers and acquisitions, capital markets, and communication. • Key relationships with other finance functions and departments like legal and operations to execute investment and acquisition strategies. The delineation of these finance roles highlights their unique functions, responsibilities, and skill sets within an organization’s financial operations. Understanding the distinctions between Controllership, FP&A, and Strategic Finance is crucial for professionals aspiring to excel in these areas and contribute effectively to the financial management and strategic decision-making processes of the organization. Each role plays a vital part in ensuring financial accuracy, providing valuable insights, and supporting strategic initiatives for sustainable growth and success.

Once you make CFO, you don't have to do accounting anymore. This is wrong. But maybe not for the reasons you're thinking. Accounting is foundational to the entire finance system. It's responsible for collecting data in a way that will be useful later. It's also responsible for ensuring correct information. So if accounting is bad, finance will be bad. A CFO's job is to oversee the entire finance and accounting function. It's crucial to design a system that will produce useful, accurate information. At smaller, fast-growing companies, it's necessary for the CFO to be integrally involved in building the system from the ground up. I know some CFOs at startups that do the whole thing: record transactions, reconcile, month end close, reporting & analysis, forecasting, capital structure, and strategy. At some point, you can't do it all. And you shouldn't. A CFO should be focused within the finance system. However, designing the accounting system will make the entire finance system better. Personally, I've worked on dozens of companies. There have been times when I didn't want to step on the toes of the controller. I let them do their thing and I did mine. It didn't work well. Not until we worked on the whole system together

I’ve noticed the most effective finance professionals and FP&A analysts have familiarized themselves with this managing this process: 🚪 the month end close process What is the month end close process? The month end close process (MEC) in accounting is when a month / period ends, and the accounting team has a list of tasks to complete before they can close out the period and issue financial statements. Examples of these items include: 👉 sales transactions review and ensuring they are in the proper period to properly state revenue (revenue recognition) 👉 expense accruals: if we didn't receive a vendor bill, we need to book an accrual for it 👉 payroll entries - ensure payroll flowing into our financial statements properly There can be a whole host of checklist items on the month end close checklist, but the key takeaway for non-accountants is that: 👀 this cycle takes the accounting team a number of days/weeks before "books are closed." I prefer when “books are close” 10 business days after the month ends. So if you are an FP&A analyst or want to move into a CFO role, having a good understanding of the close cycle and how it can be made more efficient or automated is a huge lever. Remember, financial statements can’t usually be completely automated. People need to involved 99.99% of the time. Just because you log into the accounting system mid-month and "check in on progress" doesn't mean that data is accurate or up to date. It usually takes a full review process before final sign-off. _____________________________________ If you want to learn more about key corporate finance topics like accounting automation, budgeting, and cash flow forecasting, download my free 125pg book and video courses linked in my bio 📕 ✌

Learn the 4 key differences between controllers and CFOs and when to hire a controller, a CFO, or both in the age of AP automation: https://lnkd.in/eBKphxRe #CFO #controller #AP #APautomation #finance #accountspayable

How to structure a finance team as your business grows from 0 to $50M/year: 𝟬 𝘁𝗼 $𝟭𝗠. At this stage, you need a good outsourced bookkeeper. They’ll get you financials you can trust and hand off to your CPA. A step up from that is having a fractional controller overseeing the bookkeeper. $𝟭𝗠 𝘁𝗼 $𝟮𝟬𝗠. You need someone to help you strategize and forecast the future. Someone who can help you plan for what’s possible and chart a path to get you there. You need a fractional CFO. $𝟮𝟬𝗠 𝘁𝗼 $𝟰𝟬𝗠. At this point, you should switch from a fractional CFO to a full-time CFO. You may also need a financial analyst to help the CFO with some of the day-to-day tasks. (Your accounting team can still be outsourced at this stage) $𝟰𝟬𝗠+ At this stage, you likely need most of your accounting and finance in-house. Additionally, you’re likely adding a director of finance and an FP&A manager into the mix on the finance side. Obviously, there are tons of nuances and exceptions to what I’ve outlined, but hopefully, this helps you understand: 1. The difference between accounting and finance 2. What a typical finance org chart might look like at different stages 3. If a robust accounting/finance function is important for big companies, it's important for yours too If you aren’t sure if your finance/accounting org charts are set up well, shoot me a DM. Happy to take a look or help out if I can. Follow me for more finance content.

People often ask me, "What's the difference between an Accountant, a Controller, and a CFO?" There is so much confusion around these roles, especially in small and medium-sized businesses. Here's a general breakdown: 📒 Accountant Performs basic financial record-keeping and can create simple financial reports. Manages accounts payable (A/P) and accounts receivable (A/R). Creates basic financial statements using accounting software. Attention to detail is crucial to avoid costly errors. 💼 Controller Oversees bookkeeping functions. Produces customized financial reports tailored to business needs. Ensures accurate, timely financial statements. Manages financial software and cash flow. A controller looks backwards, ensuring all past transactions are accurate and reported correctly. Essential for growing businesses to maintain financial control, optimize cash management and protecting assets. 💡 Chief Financial Officer (CFO) Manages overall financial strategy and planning. Supervises accounting and operational departments. Analyzes financial statements and drives data-driven decision-making. Develops effective capital structures and manages financial relationships. A CFO looks forward, planning for future growth and financial stability. Integral to the strategic management and long-term success of the business. To Recap: ➡️An Accountant is fundamental for accurate record-keeping, the day to day transactional work. ➡️A Controller adds advanced financial management, analyzing past performance. ➡️A CFO provides strategic oversight and planning, looking forward. Most small and medium-sized businesses can benefit greatly from part-time CFO services to gain these insights without the cost of a full-time position. All businesses need all three functions, just in different amounts that will change over time as the business grows. #FinanceTeam #BusinessGrowth #Leadership #Accounting #CFO #AIOA #Accountinuity #VeracityPros

In a growing business, there comes a time when the owner needs help with the financial side of running the business: accounting, budgeting, forecasting, tax planning and cash management—just to name a few. The question is, should you hire a Controller, a CFO or both? Carlye Dooley can help you decide in this recent blog post. Learn about both roles, their responsibilities and how they can work together within your operation. https://ow.ly/UjuP50Q1Anr #CFO #Controller #businessfinances #financialoperation

Controller vs. FP&A Professional: Understanding the Key Differences Financial Controller: • Responsibilities: • Ensures accuracy and compliance in financial reporting and operations. • Oversees accounting practices, internal controls, and regulatory compliance. • Coordinates audits and addresses findings. FP&A Professional: • Role: • Drives strategic planning and decision-making through financial analysis. • Leads budgeting, forecasting, and performance analysis. • Provides financial modeling and scenario analysis to support decisions. Symbiotic Relationship: • Collaboration: • Financial Controllers focus on maintaining accurate financial operations and regulatory compliance. • FP&A Professionals are forward-looking, concentrating on strategic planning and growth initiatives. • Together, they synergize to ensure the organization’s financial well-being and strategic alignment. Understanding the unique strengths and focus areas of Financial Controllers and FP&A Professionals is essential for leveraging their expertise effectively in achieving organizational success. 💼📊 #FinancialController #FP&AProfessional #Finance #StrategicPlanning #FinancialAnalysis #Compliance #DecisionMaking #BusinessStrategy #Collaboration #OrganizationalSuccess