You are 90% done when you simplify your business processes: Finance Rule #101

Imagine you have to go on a trip, but you are clueless about what to pack, and even if you have packed, you are not sure if you have packed the right things.

The same holds true for business processes as well; many of us need to figure out what to include, and even when we do, it is not always clear whether our operations are efficient or optimal.

One day during my 1:1 consultation call,  I remember a CFO of a fintech company asked me an interesting question that helped me learn about the importance of a simplified business process. He asked, “What is your Finance Rule 101?”

To which I replied – My Finance Rule 101 is the concept of having a structured and simplified business process – the foundation or bible of every business; let go of Finance alone.

My personal rule is, if any process takes more than 45 mins, review it, and review it again until you make it less then 45 mins!

The processes become cumbersome because there was an original process, it got tweaked as business evolved/personnel changed. Then it was tweaked again and more stuff got added on. What you now have is a frankenstein of a process which may not even be relevant for where you are today as a business. So a fresh pair of eyes would always add value!

It implies cutting unnecessary steps and streamlining existing processes in Finance and accounting to make them more efficient. Finally, it means having a framework for finance and accounting processes that is clear, efficient, and easy to follow.

But how do we create one such rule, and is this rule the same for every other finance company, or does it vary?

In my experience, the answer is neither a yes or no. Every company has different processes and needs to be tailored to fit an individual business’s unique circumstances. One size can’t fit all, and one strategy can’t suit all.

However, some common factors can help you in designing your own rule:

1) Level up your automation processes – Imagine you are using the fastest tools in your finance industry, but you still don’t get the desired results. Why? Because automation is not about stagnancy but continuous effort.

It is often assumed that setting up an automation process will give you instant results. However, you need to constantly review your procedures and make sure they are optimized for better efficiency. This includes ensuring all the settings are up-to-date and that any new requirements have been taken into account. Kaizen is the only way!

2) Match your skills with technical advancement – To stay on top of the ever-changing world of Finance, walk along technology trends. By taking courses in new software, attending finance-related seminars, or joining industry-wide networks, you can better match your skills to the advancements in the field. This will give you an edge when responding to potential employers. In addition, you can only update once & run for a while. Because in the 21st century, regular updates and refreshers are crucial to staying ahead of the curve in Finance.

Have you checked this Power BI article that gives you more insights into tech in Finance? Check out:  https://www.linkedin.com/pulse/30-seconds-power-bi-saves-hours-redundant-work-why-would-tejas-parikh/

3) Streamline processes to survive in the competitive world of Finance: In order to remain competitive in the world of Finance, companies must constantly evaluate and refine their techniques. Streamlining processes makes them faster, easier to use, and more efficient. This can be done by adopting new technologies, automating manual tasks, and implementing policies allowing quick decision-making.

Companies should also strive to create a customer-focused culture emphasising responsiveness and customer service. By becoming more efficient, companies have become better equipped to handle the challenges of today’s financial market.

4) Getting a consultant on board: Consulting with a finance expert can help ensure you follow best practices and optimal performance. An experienced consultant can also provide valuable insights into improving existing processes and identify areas where additional resources may be required.

Additionally, a consultant can offer guidance on financial strategies and help businesses create long-term plans for success. Ultimately, consultants can be invaluable resources when it comes to managing finances effectively.

5) Create a funnel for strategies to guide you:

Having a funnel of strategy in place will help ensure you have considered all your goals and objectives. In addition, this will clarify your direction, ensuring you have a clear vision for the future. It is essential to break down your strategies into smaller goals and objectives that can be achieved in a reasonable amount of time.

This will help make sure you stay on track with your overall plan. Finally, this funnel can also help in assessing progress and identifying areas where improvements may need to be made.

So, adapt to a simplified version of processes in your plan, pay attention to the basics of Finance Rule 101, and create an efficient business strategy that gives you clarity over a long-term journey.

That’s how you save time and resources, ultimately leading to better ROI.

Then, if you are still trying to figure out where to start, reach out to my team and connect with us for a deeper analysis of your processes and get them sorted asap.