#BQs – Should management accounting expand to include external data as well as internal data?

Written by Christopher Argent, Founder Generation CFO

To answer this #BQs (Big Question) let’s first remember why management accounting exists.

For me, the role of management accounts (which feels like an outdated term today) is to provide management with information to “control and measure” across three pillars.

Three pillars of information

  1. Performance Management
  2. Growth
  3. Control

ie: providing information on how the company is performing, how we think it will perform, how we can support growth, how it will grow, and how effective and efficient we are, and how much more can we be efficient.

Data Analytics approach

With reference to my Data Analytics articles, we need to take a good look at what the business needs to ask and answer to manage and grow the business, if this relies on external data (competitor data, benchmarks, external operational data -weather, traffic data, customer persona data) then you will need external data.

Is this likely to be the case in most companies?

In my experience there is a case for external data in all companies, after all, no company is an island, so it will need an external view.

 

Automation redundancy is fake news – here’s why – Part One

By Chris Argent, Founder, Generation CFO

I think the marketeers have got us accounting and finance people wrong…

The current messaging around technology adoption seems to be driven by three fairly negative statements;

  1. accountants and finance are missing out on all new technology benefits
  2. they are all doing something wrong or badly
  3. what we are doing is going to be automated; redundancy is imminent!

Whilst parts of these messages are possibly true, life isn’t so black and white, life isn’t changing at break neck speed and there is always another way of seeing the problem (and solution) especially if you know the profession as I do (and not just the marketing keywords).

Who’s to blame? Continue reading “Automation redundancy is fake news – here’s why – Part One”

#BQs – Why are finance so happy to “piss money up the wall”?

As Alan Sugar, or should I say Baron Sugar, head honcho of the UK TV Series, The Apprentice, once said…

“Business is not about coming in, pissing my money up the wall and saying ‘Oh well, I have learnt from my mistakes and it won’t happen in the future”

So what if we treated our finance processes as if we were the owner of the company?  Would we keep all the behaviour and cash leakage that currently exists?

Continue reading “#BQs – Why are finance so happy to “piss money up the wall”?”