Growth and Optimization
Navigating Tech and Best Practices for New Finance Leaders
As a new finance leader,?you¡¯re ready?make a meaningful impact on your organization. But the first 90 days in your new role will be busy. You¡¯ll be diving into all aspects of the business to gain a deep understanding of how things get done at your company.
It might be daunting. But starting with a framework can make this a more manageable experience and help you establish successful working relationships in your new role.
This post¡ªthe first in a series of three¡ªcovers how to get to know your company¡¯s finance processes and best practices.
Here¡¯s how to establish your key goals and build critical areas of understanding of the business in your first 90 days as a new finance leader.
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1.?Dive into the numbers and know?your?spend
Start by?getting?up to speed on?the financials to see how the business?makes and spends its money,?and how it runs across all departments.?
Gather?the primary financial reports and data that business owners and the C-suite focus?on, including:??
- Income statement
- Cash flow statement
- Balance sheet
- Budget vs. actual reports
- Annual reports
- Accounts receivable aging report
- Current and past forecasts
If?the?company has?automated?its?finance and accounting?processes, you should have?access to real-time data?and?a?clear picture of?the day-to-day numbers.?Also find out which dashboards your leaders look at?every day.?This tells you what¡¯s important to them and to the business.?
Download a detailed checklist on finance systems and processes?for the first 90 days in your new role as a finance leader.
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2.?Know your industry and its financial best practices
Having a solid grasp of?your company¡¯s industry?is?crucial to your success?as a finance or accounting leader.
If you¡¯re new to the industry,?you can probably learn the key basics?relatively quickly. If you¡¯re a veteran,?brush up on the basics and catch up on the latest trends.?In any case, consider joining industry groups (check professional online communities and LinkedIn) and try to attend at least one industry tradeshow or event every year.
Also, get to know?how your company acts within?industry norms. You¡¯ll learn these things while on the job.?Proactively seek out information from company documents and subject matter experts.?This is also where you¡¯ll learn more about?your products, business development, sales,?and customer service.?
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3.?Be proactive about using your company¡¯s financial systems
Navigating?a company¡¯s financial?processes?and technology can be a?major?hurdle. Get?a list of finance and accounting systems?within your first couple of days¡ªall systems, logins, and details for navigating them.
Look for systems for accounting, payroll, spend management, customer relationship management, enterprise resource planning, and financial forecasting, plus any other relevant systems and technologies specific to the company.
Then, set aside time each week to learn the systems so you can confidently navigate?them.
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4.?Get to know what makes your company run
The?general business fundamentals include,?but aren¡¯t limited to,?the company¡¯s products, services,?solutions,?and customers.?And they¡¯re usually well documented. Review the company¡¯s website, products on resellers¡¯ sites,?product?or company review sites, and sales and marketing materials.?
Look at reports in your CRM system?to?see?who your top customers are?and what they¡¯re buying.?And talk to your customer service?team.?Knowing what your company sells and why customers buy?from you?will help you?be a better-informed finance leader.
Then, when you make?financial decisions for the business,?like?cutting a product?line?or deciding where to invest for the future, you¡¯ll know what impact these?decisions?could have.
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5.?Get a handle on AP, vendors,?and spend
Vendors?often?make up a large percentage of a?company¡¯s?spend. When reviewing the numbers, you¡¯ll see which vendors are the?largest¡ªbut?you might?not?see?which ones are the most important.?So, you¡¯ll have to investigate to get the full picture.
Find out which departments and individuals deal with your vendors and set up meetings with them to learn more.?Find out what these vendors supply, why it¡¯s important to the business,?and what their?relationships are.
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Build your 90-day?action plan
Building a plan for your first 90 days?can set you on the path to success in your new role. By your third month, you should have a clearer picture of how to help the company manage its spend, optimize cash flow, and chart a stronger path forward.
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Read the next article in our series: Build Relationships in Your First 90 Days as a Finance Leader
