Q6- Managing The Finance Function & The Model Accountant

Question 1

The position of the finance function in the organisation:

Answer 1

-business partner
-shared service centre (SSC)
-outsourced

Question 2

Business partner advantages:

Answer 2

-> strong relationships with key non-finance roles
-> accountant has increased knowledge of business unit
-> dedicated resource (timely information, quick decision support)

Question 3

Business partner disadvantages:

Answer 3

-> duplication of roles across the organisation
-> lack of opportunities to share best practice and knowledge between finance professionals
-> risks isolation from a wider accounting team

Question 4

Shared services centre advantages:

Answer 4

-> possible savings (economies of scale)
-> shared expertise and knowledge (improve service quality)
-> consistent approach to the management of data

Question 5

Shared service centre disadvantages:

Answer 5

-> communication issues
-> loss of detailed business knowledge
-> accountant seen as outsider (distance in relationship)

Question 6

Outsourcing advantages:

Answer 6

-> possible cost reduction
-> smaller companies gain access to expertise
-> release capacity to add value

Question 7

Outsourcing disadvantages:

Answer 7

-> loss of control
-> potential quality issues
-> data risks

Question 8

Traditional activities of accountants

Answer 8

-> financial reporting
-> compliance and control
-> budget planning
-> product costing

Question 9

Role of the accountant

Answer 9

-> the traditional role is expanding to become a valued business partner with greater strategic and managerial responsibilities
-> moving from transactional focus to more strategic value adding

Question 10

Business partner activities

Answer 10

• involvement in strategy formulation, implementation and communication
• involvement in commercial decision making and negotiations
• leading on business analysis
• being trusted advisor across the organisation

Question 11

Effect of technology (AI)

Answer 11

1. Reduce basic tasks
2. Automation- more time for input into strategic process
3. More data- detailed insight to support decisions
4. Quicker communication

Question 12

New skills required (impact on profession)

Answer 12

1. Business awareness needed to understand what is needed for success
2. People skills needed for communication with non finance managers
3. Leadership skills needed for providing direction and motivation
4. Digital skills needed for use of specialist software/tools
   -> skills according to CIMA competency framework