Introduction

In today’s economy, everything is about partnerships. You cannot succeed as a finance business partner unless you have a firm grasp of industry trends and developments. And that’s why we’re here to help you! We’ll outline the critical points you need to know to be a successful finance business partner in this article.

You are in luck if you’re also looking for a great finance business partner. We will cover everything you need to know in this article to ensure that your company gets the most out of its finance staff and functions. From understanding the basics of accounting and financial planning to setting up a system that works for you and your business, we will cover everything you need to get started. Therefore, whether you’re a new or established business, continue reading to learn how a finance business partner can assist you!

At the end of this article, finance and non-finance professionals alike should be able to have answers to the following questions:

• What steps should you take to prepare to be a finance business partner?

• What does the term “finance business partner” mean?

• What makes a great finance business partner?

• What value does a finance business partner add?

Overview

A finance business partner is more than just a financial expert; they must have the ability to be an invaluable asset to their client to keep them coming back and working with them repeatedly.

Being an effective finance business partner has more to do with the relationship you have with your non-finance team members than it does with the numbers you provide them or even the tools you choose to track those numbers with.

Nowadays, the term is thrown around very loosely, but what exactly makes an effective finance business partner?

What are the expectations of a finance business partner?

• A finance business partner should be comfortable with taking risks and working with uncertainty.

• A finance business partner should confidently present valuable insights to an organization’s appropriate authority.

• A finance business partner must be able to communicate effectively between finance and operations.

• A finance business partner should have an impact on daily decisions by influencing the company’s policies and guidelines.

• A finance business partner should be financially savvy and capable of anticipating the needs of the organization for which they work.

• A finance business partner should have strong business acumen.

Finance Business Partnering Skills

The following are the fundamental competencies of a finance business partner:

1. Decision-making skills

The finance business partner role is a step up from that of an accountant, as you will be involved in making critical strategic business decisions for the company’s benefit. You will become involved in new initiatives and provide general assistance to commercial decision-makers.

2. Communication Skills

Finance business partners are critical to the success of the company because they evaluate raw data and communicate it to non-finance colleagues in marketing, sales, and operations. The objective is to organize and appraise data before engagingly presenting the findings to the appropriate decision-makers. The finance business partner can communicate the story and construct a compelling picture in both the finance and operations languages. Successful performance in this position involves a combination of commercial intelligence, logical reasoning, and the ability to develop relationships, and persuade.

3. Influence

An effective finance business partner can persuade others through their confidence and clear, concise messages. They see current trends in the market and can adapt quickly, while still having an unclouded vision of where they plan to take the company.

4. Leadership Skills

Excellent finance business partners set a good example for their teams and inspire them. They are cooperative, optimistic, and resilient, and they are willing to go the extra mile to deliver.

5. Change Management Skills

Finance business partners are prepared to meet the ever-changing business needs. The ability to adapt will be just as important as financial analysis skills.

How to go about being a great finance business partner

Here are some key points to consider when considering how to be an effective finance business partner and build a great working relationship with team members and clients who are unfamiliar with finance jargon.

1. Understand the business

Although it may seem obvious, you cannot be a good financial business partner until you understand what your firm does. Understanding not only its products and services but also how it makes income and interacts with consumers will help you approach financial decisions in a way that is consistent with your business goals. And, while it may appear obvious (yet again), remember that sometimes something is so simple or clear that we take it for granted.

Take the time to understand what your company is doing and why it is doing it. Do not just mindlessly follow instructions. If you understand what you are doing, you will be able to perform it better because you will know exactly how and why it fits within your company. It will also provide suggestions for areas where things could be improved or streamlined.

2. Read, research, and educate yourself.

To be a successful finance business partner, you must first understand (as stated above) how each of these components interacts with one another and where they do not. While you can learn some things internally, it is also a clever idea to look for external books to study to expand your knowledge. Read everything; even if it is not immediately relevant, the experience will come in handy later when you are drafting reports or giving presentations. The more you learn, the more likely you are to assist others in making sound financial decisions.

Reading industry journals is a great way to stay up to date on trends and developments not only within your organization, but also across industries. Investigate research papers for specific industries or firms in which you are particularly interested; knowing more about these players can have a significant impact when making business decisions for your organization or clientele.

3. Work together as a group

Your business partner in finance could be your CEO or CMO. It could be someone from another department in your firm (like IT or HR). Regardless of who you collaborate with on finance initiatives, you must work as a member of their team. This includes showing an interest in what they are doing, offering information when appropriate, and being careful of how your actions may affect theirs. The more you understand them and their roles—and vice versa—the more effectively you can collaborate as partners. Sometimes that means giving up some time so they can get what they need from you; other times, it means going the extra mile or even putting one assignment ahead of another.

When it comes to creating value, business partners are more effective when working together. Finance can be a great business partner for other departments like marketing and operations. When these groups collaborate, they create the potential for cross-pollination. For example, if your company wants to launch a new product or upgrade its IT infrastructure, try incorporating finance into the discussion early on so that you can properly set expectations about resource and capital requirements. And, when deciding on projects and product offers, use data from numerous sources, including finance, to make smarter judgments that add more value to customers. When everyone works as a team, each group may offer its skills and produce greater business results for everyone.

4. Document Everything

If you want to be a great finance business partner, make sure to properly document everything. Any questions you have about past results should be documented in detail and delivered as soon as possible so your team can find out what happened. Take notes on any updates they provide you with during your meeting. It will be easier for everyone if they can jot down notes on what has been said and refer to it later if you write it down on paper rather than in an email or other digital format.

This is especially true when you are working on projects with other departments or people outside of your organization. Effective communication is essential, and you cannot communicate something that you do not know. Make sure that you take detailed notes while talking with clients, vendors, etc., so that if issues arise, you have an accurate account of what was said and what it pertains to. It might seem like overkill at first, but it will save time and money eventually. Also, make sure that everyone involved has an accurate representation of all transactions being made as well as any additional projects being developed by other parties involved in these transactions. This helps avoid misunderstandings down the road.

5. Keep up with current trends

Keeping up with current trends is critical if you want to effectively participate as an advocate for your clients/partners and meet their needs. The same is true if you want to be a valuable member of your company’s leadership team. To make sound decisions, all leaders require other viewpoints, ideas, and experiences. If you stick to your ideas, you will end up following old paths rather than forging new ones. As a result, consider staying up to date on current accounting standards, tax changes, and other business-related news so that you can always make informed judgments about your clients’ or your organization’s finances.

Another factor to consider is that the finance industry, like technology, moves swiftly. To help their company stay competitive, finance business partners must stay on top. The first step for a finance business partner is to determine how its organization views its relationship with technology and where it wants to go from there. This would certainly entail integrating IT goals with those of other departments to gain leadership support; one important way to do so is to link IT activities to larger company goals like growth, profitability, employee satisfaction, or new product development. After you have discovered that link, investigate how technology might help your company’s strategic plan.

6. Communicate Effectively

Communication is one of the most important abilities to have as a business partner. It makes no difference how high-level your finance job title is or how much money you make; if you cannot explain things to non-finance professionals, they will not listen to you. Arm yourself with financial language to demonstrate your worth. Maintain your education by examining accounting and balance sheets daily, so you can speak effectively about financial problems in ordinary language. That way, if someone ever disputes one of your stats, they will not take it personally if you point out their lack of understanding in that area—you were simply trying to help!

Communication is one of the most vital tasks in finance. As with many company functions, you should come prepared with solutions to your colleagues’ financial questions. Knowing what is going on in sales, marketing, and operations will allow you to deliver concise explanations to your colleagues about how these company components affect revenue and profit. It also better prepares them to assist you if they ever find themselves in your shoes. Marketing, for example, understands that providing people with things they want and are willing to pay for is part of their job; if they don’t do their jobs well, revenue growth will suffer, affecting profitability. Knowing what to say and when to say it is critical for gaining the needed support.

7. Recognize which data is important.

There is an infinite amount of data available, but knowing which data is relevant at any given time is critical for proper decision-making. Effective business partners must be able to evaluate what data is relevant and how it will impact their financial decisions. This may appear to be a basic concept, yet many individuals lose sight of it when they become engrossed in irrelevant information. The first step in evaluating which data is important is knowing how to discard information that will not help you make better financial decisions. Analyzing your objectives for using specific metrics or information to help your organization thrive is beneficial because it will provide insight into which measures are more important than others.

When exploring data sources across departments (marketing, operations, and HR), make sure you understand what is important to each team and align with them rather than simply asking for figures because they exist.

8. Be adaptable.

As your company’s needs evolve, you must be as adaptable as possible. Work with your team to determine which tools, methods, and resources make your life easier (and which do not). There are numerous strategies to become more adaptable, some of which have nothing to do with technology. Adjusting office hours or modifying the way teams work might help everyone on your team accomplish their best job and stay focused. When it comes to projects, meetings, or presentations, use project management software like Slack or simply a whiteboard so that others can see where you stand at any given time—and jump in when they need or want to.

Whether you have financial experience or not, you will need to be nimble and fluid in your thinking. Because you will certainly be a part of every major financial debate, it is critical that you understand the fundamental factors that drive major decisions. You should also add value by performing proactive analysis, such as following competitors or digging down into market share, so that decision-makers know where their organization stands and may take appropriate action. It is about getting people on board with your vision for problem solutions.

9. Look beyond the financial data

Digging into financials and financial data is critical, but there is more to being a great finance business partner than money. Understanding how your business affects – and is influenced by – your sector, company-wide efforts, and so on is critical. It will provide you with a better understanding of how your department can effectively serve other sections of your organization. It also provides you with a better understanding of what elements are aiding or hindering success. When you have all that information at your disposal, it is much easier to make strategic recommendations. (Pro tip: Don’t leave home without it.)

Many employees in finance get caught up in data analysis, especially when it comes to performance reviews. However, there is more to your company’s overall performance than just figures. Look for the factors that contribute to your company’s and departments’ triumphs as well as failures. What do others do differently than you? Are there any external elements or competitors that you should be aware of?

Rather than focusing on where other teams could have done better if they had done things exactly like you, concentrate on these areas and make suggestions on how they could improve. It is critical to comprehend everything from its non-financial perspective.

Conclusion

It is not enough to have the right skillset to be a great finance business partner. It is also important to be able to communicate effectively and build trusting relationships with your clients. As a finance business partner, you play a significant role in your colleagues’ growth and success. By following the guidelines laid out in this blog, you can improve your skills and become an essential part of the team.

Finance Business Partnership entails more than just numbers crunching. Because the FBP is so crucial in day-to-day operations, it is critical to focus on strengths and provide intelligent suggestions on how to get things done effectively.

• Accounting teams who genuinely wish to be seen as valuable partners should consider the following:

• Be proactive in considering systems and procedures that can save money or increase revenue streams.

• Do not be hesitant to step beyond your comfort zone.

• Maintain an open-door policy and let your coworkers in.

We offer comprehensive training and courses at myCFOng that will help you become a better finance business partner. By acquiring the necessary skills, you’ll be in a better position to offer sound financial advice, prevent conflicts from arising, and build lasting partnerships with your clients. Don’t put it off any longer; sign up for one of our upcoming courses today!