Name the first term in the associative array connected with financial specialists’ work. Let me guess, it’ll be something like ‘number-crunching’ or ‘balance sheets’. But, if to break it down with some hard figures, a strategically crafted financial plan, meticulously executed, can translate into millions in cost savings, boost profitability by a substantial double-digit margin, and ensure optimal capital allocation for maximum returns.
This isn’t just theory; it’s a data-driven approach that holds the key to a company’s financial well-being and overall performance.
Let’s delve into the exact mechanics of how financial specialists drive value for businesses, supported by real-world examples and figures that emphasise their pivotal role in the corporate landscape.
Give it a 360-degree perspective
An effective financial department is one that works closely with all other teams, ensuring that every decision we make is in perfect harmony with our strategic goals. This means keeping a watchful eye over financial planning and conducting in-depth analyses, all to safeguard the company’s financial well-being and guarantee its long-term sustainability.
At Evoplay, our collaborative framework is designed such that any decision originating from any department finds its way through the review process of the finance department. It’s not solely a matter of numerical figures; it’s the comprehensive understanding of the entire company’s dynamics – a 360-degree perspective.
The objective here extends far beyond conventional accounting and report consolidation. The pivotal role is to act as a driving force behind the company’s expansion and prosperity.
Know your business inside out
To truly grasp the inner workings of a business, you’ve got to put in the time and dedication to stay in the know and actively involved. A Head of Finance who’s not only on top of financial intricacies but also tuned into the bigger picture of the business is in a prime spot to make meaningful contributions to the company.
The initial mission of an effective financial specialist goes far beyond creating a finance system; the primary goal is to attain a holistic comprehension of the entire business. Delving deep into a company’s history and operations is absolutely essential. This in-depth exploration allows you to spot trends, assess past financial performance, and pinpoint areas that need improvement. The historical analysis yields invaluable insights for shaping future financial strategies, helping you identify what’s been successful and where changes or enhancements can be made to boost the company’s financial well-being and performance.
In general, you must have a solid grasp of the past, a keen awareness of the present, and the ability to craft strategies for the future.
To illustrate Evoplay’s example, a comprehensive evaluation of data from previous years resulted in the identification of spots for improvement, particularly concerning cash flow and income/cost management. The subsequent financial plan for the new year was rooted in a principle that emphasised not merely slashing costs but recognising their value and aligning resource allocation with our financial performance and cash flow. This strategic approach ultimately led to a remarkable +101% growth in Evoplay’s annual P&L.
Another important toolbox for knowing the company from A to Z is communication and networking.
Interacting with leaders and teams across various departments is a must. It fosters an understanding of how each function contributes to the company’s success. The key to effectively addressing any issue lies in building dependable partnerships and assembling a team of skilled professionals and consultants from various fields. Networking is also paramount, given that, for the most part, companies in the industry face similar challenges. So, understanding the industry and the people within it is indispensable.
Turning data into dollars via forecasting models
Forecasting models are like a crystal ball in the business world. They help financial experts see around corners and navigate the twists and turns that lie ahead.
The approach to financial forecasting isn’t a one-size-fits-all deal – it depends on a bunch of factors, like your industry, your company’s uniqueness, strategic goals, and market conditions. Some companies might swear by the classic yearly forecast, while others go all-in with scenario-based or real-time models.
Scenario-based forecasting can be a lifesaver, especially when you’re dancing in the uncertainty of the markets. It’s like having a backup plan for your backup plan.
But here’s the exciting part – we’ve got some fancy tools like artificial intelligence and machine learning stepping into the game. They can crunch through mountains of data, finding those hidden trends that might be challenging for humans to identify. But remember, they’re not all-knowing. They need good data and human smarts for that fine-tuning.
Speaking of smarts, financial forecasting is more of an art than a science. It’s a mix of numbers and gut feelings. As a Head of Finance, you’ve got to blend the quantitative data with your own expert view on this to deliver the best decisions.
To ride this wave of trends and innovations, every company needs to look in the mirror and figure out what suits it best. What does your business need, and how does it fit into your industry’s domain? Keep your eye on the ball, stay updated, and you’ll stay ahead.
Playing the long game is the biggest value
For the sustained success of an iGaming business in a fiercely competitive and ever-evolving industry, a well-defined long-term financial strategy and vision are crucial. These strategic blueprints offer clarity, guidance, and a structured decision-making framework, which are indispensable for achieving financial stability and fostering growth.
Contrary to the misconception that financial specialists and accountants are mere number-crunchers, they play a far more significant role. They have a unique talent for translating the actions of various departments into numbers. This enables them to assess how these figures impact the overall health of the company. Their insights, stemming from a deep understanding of the business, go well beyond numerical reports. They function as strategic partners, capable of identifying weaknesses and roadblocks that hinder growth and progress. In this way, financiers play a pivotal role in the company’s ability to adapt, thrive, and flourish in an ever-shifting market.
So, here we witness the true value that an effective Head of Finance brings to the company. No chaos, no uncertainty. Instead, a company secures its roadmap to financial prosperity, and it’s where financial experts win the day.