Flash news: Finance professional takes up modelling careerSarah Whitworth
Ever wondered what you would do if you didn’t just do Finance?
Imagine if the beans counted themselves, the income stated itself, the cash flow just, well… flowed, the disclosure just managed itself …in multiple GAAPs …outputting to MS Word and MS PowerPoint automatically.
Much of AP and AR has become automated so what’s next?
What would you do then?
Well you could do what other Finance people do and start modelling. No, not the ‘catwalk’ or ‘photographic’ stuff, that’s too easy. The difficult stuff. The ‘working out the business rules and the operational drivers to come up with the best business decision’ stuff. The ‘strategic advisor’ stuff.
What do we mean?
Imagine you work for a retailer, selling 3,500 items; in 8 different sizes if you’re a fashion retailer; across 1,500 shops, in 10 countries, supplied by 4 warehouses. That’s some pretty interesting numbers. Now, who is best placed to work out how you work out, which store gets a blue and yellow striped top, size 10, on Wednesday in Week 33?
Is it the…
Store Manager, because she’s sold out? As have 50 other Store Managers.
Is it the Warehouse Manager, who has received 50 requests for a total of 88 blue and yellow striped tops, size 10, when he only has 30 left in stock?
Or is it you, the ‘Strategic Advisor’ – who might suggest that the job is broader than either of them and what they need is ‘decision support’ that can take all the factors into account. You understand about financial factors and their influence on business performance.
For example, Finance understand that not all stores are equal. Some stores have higher turnover of stock and lower clearance volumes than others i.e. they have higher footfall and they forecast better. Finance understand some irrefutable business laws e.g. the law of diminishing returns i.e. the shorter the time the item has been in a store the more likely it is to still sell.
Finance are also typically familiar with getting the bits of data they need from the various systems used in the business and working out how they relate to each other. Imagine if you applied your knowledge and experience to capturing and analysing all the factors in the decision. The guys in our example did and they helped achieve a €42M increase in Net Income; not just Revenue… because Finance knows that Revenue is vanity and Profit is sanity.
Interested in modelling?
We can’t say that you can add €42M to your net income. But we would love to help you try. So, if you are interested in modelling, and how to make the time for you to do some, then contact HAYNE for an informal discussion.