The CA professionals really should engage themselves into business planning not only doing Audit/Accounting work, beyond this their contribution is required to integrate all the departments in one pool to identify the contribution on spending every single rupees.
F/A should not act as a fear factor to the other departments,whereas they should approach each and every transactions from the business aspect rather than finance aspect and to aware concerns to identify the risk associated behind, finally advice to overcome identified risks in order to achieve the planned potential goals.
They should keep in mind always that the entire accounting system is working to support to business, if business survival is important for accounting.Therefore there is no boundary for F/A departments employees. There should realize they are backbone to the company growth.
The Finance / Accounts department professional should provide fruitful MIS not only to MD/CEO, but also to all department heads in order to improve the respective department contribution. Why because the F/A is having entire recording data and documents,from their profession they know how to analysis the data from financial point of view.
i. If new recruitment means calculate the “contribution for new appointment of person”
ii. To purchase Dept provide “Suggestions for alternative course” by applying the relativity costing.
iii. Always keep eye on current assets and ensure its movement.
iv. Analysis deviation between potential growth and achieved growth.
v. If Fund deficit / Surplus discussion on alternative business sources / investment ideas
vi. Ensure to sustain the company by comparing with Industry
Continues strategical planning is required to analysis the incremental cost on each activity. It should not be like implementing the cost cutting policy indiscriminately, if so which may impact on reverse side, hence the detailed analysis is important before implementation any policy.
i. Analysis of Incremental cost i.e. if you reduce the cost Rs.10, the benefit will get reduce Rs.15
ii. Identify real contribution of such activity for which you are reducing the cost.
iii. Take downline suggestion before concluding the policy rather than desk work with seniors.
Work in field
Pls don’t do table work, run around company &work in the field to identify things where cost is being under absorbed. Discuss with technical persons to improve 100% utilisation at whatever the company is spending.
In organization, one could not improve the company and one department could not achieve the goals with our team coordination which should emerge from F/A department.