Some of you may already be familiar with the LASER framework for assessing a finance function. Great finance functions are:
Engaged and above all
The position of robustness at the base of this list is significant: it supports everything else. If accounts are wrong or controls are weak then you can be as lean and speedy as you like, but the finance function is failing to deliver essential elements of its remit: to provide robust information and control profit & cashflow.
So, if you are trying to turn around or transform a failing finance function, getting into a position where financial information and controls are robust should be priority number 1. This means taking action to:
- make sure that you know how much cash you need and that you have got enough of it.
- ensure that the balance sheet is fully reconciled regularly.
- implement clear controls over expenditure and pricing, and make sure they are adhered to.
Crack these and you will start moving in the right direction.
Bellevue Partners helps develop effective finance functions by improving how they connect with the organisations that they serve. Get in touch if you would like to find out how we can help you.