Quote "The finance person in a company of any size plays a crucial role in supporting management and their decision making." (Source: David Irving, unlimited.co.nz, Feb 08).
The finance person is a critical cog in the wheel to ensure the smooth running of an organisation. They may not always have all the right answers but they should be providing all the right data.
Knowing how accountants get their data isn't as important as understanding what the data says and applying it.
Here is an extract - "The monthly accounts are a more comprehensive picture of the company performance, covering all costs in revenues and any other activities. Quarterly reviews typically capture seasonal fluctuations where monthly numbers are too arbitrary a period. Ice cream sales may be crucial in the first quarter of the calendar year while soup sales lead the way during the winter months. Annual accounts, of course, have a very traditional layout but need to be written in a form that give value to the reader when comparing this year to previous years and seeing the consequences of any changes resulting from management decisions made during the year."
These are basic principles that can be the making or the breaking of a business, organisation or group.
Note - Interestingly the article was originally published in February of 2008 - just 5 months before the start of the global financial crisis.
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