How To Be Creative CFO?

"To do accounts for account" is Majority People who work in financial work have gone through, for example, when a business is a fait accompli, when a financial manager finds a problem, he can only complain. "It's the business department's trouble. Finally let's remedy it." handling this situation not only takes time and cost to dredge the relationship, but also needs to be constantly monitored and questioned by the inspectors. People who work in this state are nervous and inefficient, let alone create value for enterprises.

Breaking loose and changing roles

To become an innovative and valuable CFO, First You can't wrap your mind in numbers. We must get out of the financial department and consider the problem from the whole process of enterprise operation. That is, emphasizing process, process, plan, resource, distribution and planning, not only thinking of the problem, but also at any time in thinking and planning what kind of innovative management tools and techniques to prevent the occurrence of such problems, and ensure that business processes are smooth and high. Therefore, the role of CFO must be changed from ex post analysis and judgment to advance participation, design, planning and operation. It is ready to respond to any questions raised by the operation Department and CEO on the business and business plan, and must provide the most economical and efficient implementation plan for the implementation of these plans.

To accomplish this series of changes, financial executives need to make corresponding adjustments and adaptations in terms of work time distribution, business attitude, problem perspective, communication and communication. For example:

Time allocation ratio:

Most of the time needs to be spent on "non". Finance Thinking and planning enterprise resources, considering new business ideas and business plans, and communicating and communicating with different stakeholders.

Attitude towards accounting standards and rules:

Policy and regulations should not be ignored, and policies should be considered and analyzed in many fields. On this basis, we design company management procedures and rules with company characteristics.

Principles of implementation:

Starting from the way the company creates value and the profit model of enterprises, considering the impact of existing company processes and regulations on company value and enterprise resources, the process and enterprise resource allocation reports are submitted to management to improve the company's efficiency.

"Extroverted" communication interface:

Take the initiative to contact stakeholders, especially with investors. Understand the business needs and concerns of different stakeholders. Get others' understanding and support for the company.

Based on the above analysis, value CFO must have the following abilities.

Positioning financial management value orientation

The first thing that value treasurers need to consider is how to accurately locate the direction and value orientation of enterprise financial management. On this basis, planning the focus of financial management, especially judging and planning the flow of enterprise resources, should be based on whether the existing profit mode and value creation mode are the decision-making factors.

Because the profit mode, value creation mode, competitive advantage and strategy of the enterprise will influence and decide the orientation of the financial management direction of the enterprise. The traditional financial management mode does not consider and locate the value direction of financial management. It simply believes that finance is the monitoring of business behavior. The consequence of this is that a lot of work in financial management is consumed in transactional nature, which leads to the lack of directivity in the direction of financial resources and the direction of investors. The value orientation of financial management is to focus on the core strategy, profit mode and value creation mode of enterprises in this period, and to provide resources protection for the core businesses by concentrating the limited resources of enterprises.

Different profit models, the value orientation of financial management is also different.

The value orientation of positioning financial management is that the financial officer guides the enterprise resources to lean towards the core value creation mode and strategic investment direction of the enterprise, formulates the financial management system conforming to the enterprise creating value pattern and the enterprise investment strategy, and with financial technological innovation and constructing the new financial management team, enhances the enterprise value creation ability and the effective utilization of the enterprise resources.

Innovating financial technology and information system

Financial technological innovation, especially the ability to deal with financial information (related: securities, finance and Economics) is the basis and prerequisite for all financial value work. If the information flow is not smooth, or the accounting information can not objectively reflect the characteristics of the business, not only the objectivity and relevance of the accounting records are challenged, but also very passive in the negotiation process with the external auditors and tax officials.

Establishing accounting standards and subjects that meet the characteristics of enterprises.

Accounting is a business language, and it also reflects the objectivity, authenticity and relevance of accounting. All countries in the formulation of accounting standards, especially the description of accounting subjects are based on universality and universality, and formulate the principles and criteria of broad categories.

Although international accounting standards are increasingly converging, many multinational companies, when formulating corporate accounting subjects and accounting procedures, are also designing and formulating accounting subjects and accounting procedures that conform to enterprise operation, product characteristics and mode of production under the framework of accounting standards, tax laws and business regulations. I have experienced three European and American enterprises, each enterprise's accounting subjects have their own characteristics: for example, the OTIS elevator company's asset class subjects have pre Invoicing; and LOI -THERMPROCESS asset class has unfinished contract cost items.

Focus on the focus of enterprise management

The accounting, processing and recording of capital flow, logistics and expenses should be symmetrical, relevant and authentic. For example, an enterprise that produces large equipment is based on "project management" and adopts the independent budget assessment of the project, which involves the use of funds, consumption of materials, manpower, and operation cost of projects. The company CFO in the design company accounting subjects is to regard the project as the most basic unit of accounting subjects in the financial system. When accounting personnel input information, the definition and ultimate destination of information is defined under the independent project name. Information only needs input once, and the state and result of project running can be obtained from the financial report. For example, independent projects such as cash flow, material consumption, profit level and other key indicators.

Flexible handling of accounting standards

The biggest change in China's new accounting standards is that it has increased the judgment and explanation of the business itself, and has a higher demand for CFO in financial technology. In view of the handling of such accounting information, the common feature of accounting standards and auditing procedures both at home and abroad is that accounting records should conform to objectivity and particularity. At the same time, CFO is required to be consistent and unified when processing information. For example, when considering the future cost and expected withdrawal of services, maintenance and projected loss reserves, CFO should design equipment quality margin according to the percentage of sales according to the cost and risk tolerance of enterprises, and skillfully choose the time in the enterprise to enjoy the preferential income tax relief period. Next year, there is a constant proportion of the amount of money borrowed and net transferred. It not only digested the cost in the first time, but also provided guarantee and reserve for later operation cost pressure and risk control.

Integrating information technology and business strategy

CFO should act as the promoter and scheme designer and planner of enterprise informatization construction, and realize the docking and transformation between information flow and business flow. Building a forward-looking enterprise information platform is not only collecting more data, integrating upstream and downstream suppliers and customer resources, but also an important means to extend the business chain, control and allocate more enterprise resources, and enhance the value creation ability of enterprises. For example, an equipment supplier of a number of original factories, a few years ago, the company's strategy has been greatly adjusted, retaining core areas such as design, product development, market and supervision, and shutting down redundant factories. When manufacturing is transferred to low cost areas, the manufacturing mode changes the way of self built factories in the past. Instead, it adopts external subcontracting. With the transfer of enterprise strategy, the focus of corporate financial management is shifted from factory manufacturing cost monitoring to quota management for main sub contractors, and networking and information docking between the company's information system and the main processors. According to this model, the company's performance and contract amount exceeded several times in the past.

Focus on external resources, enhance financial management efficiency and transform monetary resource capability

CFO needs to pay close attention to the new varieties of service provided by the external financial services institutions, try new ways of cooperation between banks and enterprises, improve the efficiency of financial management and transform the ability of money resources. In recent years, new listed commercial banks have provided some financial services for some enterprises. For example, the transfer of funds between the parent company and its subsidiaries, the payment of the reserve fund, and the monitoring and management of the authorized amount of the branch account can manage and monitor the capital chain between the parent company and the branch through the bank network.

Diversified management to explore business potential

The connotation of modern financial management has extended to enterprise operation and decision support. Risk control and prevention are not only checking data.

Building a diversified financial management team

The composition of the new financial management team should be diversified in terms of profession, interest, culture, skills and experience. The greater the professional background and experience between members, the more complementary they can be in thinking and judgment, and filling the mentally active non financial professionals into the financial management team, which helps the team form a thinking mode of combining business and finance. It is a good choice to find suitable candidates from the operation Department. For example, when choosing a person who has worked as a purchasing assistant or material manager, and is responsible for dealing with system customer management or inventory management, their familiarity with goods is far greater than that of financial staff.

Financial management "move forward"

In reality, the cost of financial problem solving depends largely on the time of intervention and the speed of follow-up. In order to cope with the new commercial competition environment, CFO needs to lead the whole financial team to move forward the working time, integrate the financial personnel's business viewpoint and intelligence into the operation of the enterprise, and effectively prevent and defuse the risk of the enterprise.

When the resources and business objects are the same, the different business understanding and the choice of different business paths that integrate into financial thinking will have a huge impact on the net profit that the enterprise can finally achieve.

Have the courage to try "new"

In the changing business environment, organizational structure, business model and business strategy of CFO in the mall, we need to adjust the financial management structure to support and activate the new business mode. Therefore, it is not necessary to confine our thinking to existing management models, such as vertical management and flat management.

There is no "fixed law" in management. The principle of choosing management mode is to tilt the focus and value orientation of financial management to value creation. For example, with the help of advanced business information system, each subsidiary or branch company is authorized to be an independent "profit center", and equipped with relevant resources and business operation authority to carry out business assessment. Headquarters financial functions will be implemented in the internal control of innovative means, the "profit center" risk assessment, value creation index audit, operational performance audit, enterprise resource use audit, etc., can effectively activate the potential of subordinates to create value.

Where does creativity come from?

Take time to think.

Ideas are mostly worked out in a non working state. Thinking is not always right, but relaxing is often the only way to think. For example, walking and going to work before going to work to maintain excitement and physical vitality. Before entering the working state, clear thoughts and recollection of what has happened, maybe different thinking arises.

Changing environment

People tend to be most numb when they are in the office. Choose to leave the office for a while and change the place to rethink the problem. For example, choosing a BAR not far away from the company, listening to music, relaxing nervous nerves, looking at documents, reexamining old problems, new ideas or different views on the original problems may be miraculous. After thinking mature, return to the office to lay out specific plans.

Expand communication interface

One of the characteristics of finance is that "tension" is very large. Some inspiration from other fields often activates the idea of CFO. More exchanges with other fields, such as sales, IT technology, marketing planning, management consulting, business media, etc., can effectively improve CFO's knowledge structure, know the latest business information and trends, and boost financial creativity.

Grasp a typical example and you will grasp the whole category

The language used in finance is the most boring, the most unimaginative, relatively rigid and rigid, and it is more direct and effective to cultivate people's perceptual knowledge from the non professional fields. For example, the information people get in tourism is much more vivid and vivid than the information obtained from books, which is in line with the traditional Chinese culture of "ten thousand miles" and often receives the effect of "no intention". For example, when traveling to some Nordic countries such as Germany, as long as we are careful, we can see that the industrial elements of these countries are similar to the climate of the country. On the contrary, in southern European countries, such as France and Italy, warm colors of consumer goods and luxury goods are the mainstream of Commerce. These seemingly unintentional discoveries and experiences can enhance the existence of transnational business culture and humanistic culture that CFO thinks and feels different from different perspectives. When confronted with cross border financial management, new answers can be found from these differences.