The role of Finance Business Partner in Sustainable Businesss
Driving Strategic Decisions for a Greener Future through Financial Insights and Partnerships
The role of Finance Business Partner in Sustainable Businesss
How important is Diagnostic and Analytics Data Modelling in UAE Competitive Landscape
Understanding the Role of
Finance Business Partners
In generally large-scale companies, the term business partner is referred to someone who connects a specialized department (i.e. finance, IT or human resources) to other parts of the business. Finance business partners are usually finance experts that works in non-finance areas, they dig deeply and manage the financial data analysis and insights. This data is then converted into actionable strategies and makes a great difference in over all growth of business.
FBLs links the distance among the other sectors of a firm with finance department, and guides the non-financial
mangers about the financial terms that help make better decisions, achieve strategic goals and improve financial
performance. A representative example are Key performance indicators (KPI’s) which impacts every department in gaining the insight performances and productivity
Yet not every team has the skill to understand or interpret them, this is where finance business partners play their role. Their importance is beyond the traditional financial duties, they emphasize on the teamwork, proactive analysis and help shape business choices across the company.
Did you know?
According to 2023 pulse survey, which included 100 CFOs, which inquired about the key focus area for the upcoming year, 43% of respondent choose, establishing finance as business partner, Which was the third most common answer
Fuelling Growth:
How Finance Business Partners
Drive Value and Impact
The role of finance business partners in sustainable business growth is beyond doubt, they hold the true potential in fuelling growth and advancement of business in the market. Some key benefits of hiring finance business partners include,
Risk Mitigation
With the dynamic financial reporting, FBP’s can receive up-to-the-minute guidance which reduces financial risks and promote long term growth.
Performance Evaluation
Financial business partners by evaluating key perform ance indicators (KPIs) identify the sectors requiring betterment to cut cost and improve profit margins.
Financial Planning and Analysis
Financial goals and organizational targets are integrated together with the help of FBPs, they get feedback from various branches of a firm and create a relatively effective company’s FP&A which drives growth.
Budgeting and Financial Predictions
Finance Business Partners along with different groups, set an objective to limit expense, revenue targets and forecasts future revenues and expenses. They create budget scenarios and make sure that it stays aligned to its growth targets.
Insightful Recommendations
In the essential decision process, FBPs contributes to offering assessments and revenue predictions which helps in cost saving initiative, business investment and expansion opportunities.
Tech-Driven Financial Management
Finance business partners suggest an efficient Enterprise Resource Planning (ERP), tools and procedures that help in finances. They blend technology and financial services so smoothly that it drives operational excellence.
Finance and Bookkeeping Services
The daily process of book-keeping is usually related to income, expenses, daily transitions and financial activities. FBL look after these bookkeeping and ledgers maintenance tasks to ensure that they are correctly categorized with no human errors. Moreover, they compose a through detailed analysis of finances through gathering important documents like cash flow statement, balance sheet, income statement which provides financial business performance.
Tax Advisory
Finance business planners guide companies about their tax-related matters, by uncovering the tax-reduction strategies and providing updated rules and legislative requirements. They also serve in accomplishing the requirements set by the Federal Tax Authority (FTA) which further benefits in FTA audits.
10 Rules of Business Growth:
The Vital Role of Finance Business Partners
According to Mckinsey’s “10 rules of business growth”, which was based on the in-depth study of the trend of sample companies through different perspectives. Finance business partners play a fundamental role in achieving these 10
requirements for business to surpass and earn more than their peers. Let’s see how,
Competitive advantage is the first step to growth
For a higher competitive advantage higher Return on invested capital (ROIC) is required, Companies with improved financial returns Accelerate growth and yield even higher profit
Role of Finance Business partners:
FBP conducts a detailed analysis on finances and invest capital in high rewarding projects and tracking ROIC in real-time against the competitors. Additionally, by collaborating through various service areas, they make sure that Capital projects align with organizational goals and industry demand which increases the chance of producing higher returns
Turn trends into advantages
Organization needs to prioritize investing in trendy and profitable markets, to maintain a competitive edge.
Role of Finance Business partners:
FBPs carry out an insightful market investigation, and establish resources that are focused on high-potential and trendy markets, with the help of marketing team they keep in-check of the investments and high market demands.
Stay in the lead
Companies need to imply a strong business architecture to outgrow their industry.
Role of Finance Business partners:
FBPs stays updated with the consumer behaviours and on-going trends, further the prompt decision-making, gathering new opportunities, and strategic planning help organizations to outgrow and achieve an enduring growth.
Maximize your growth in core
According to the Mikenseys report, any company cannot strive without the growth in its core industry.
Role of Finance Business partners:
Finance business partners understand this equation of success and emphasize on the key areas of the company by tracking all the departments continuously and focusing on the core developmental areas.
Explore beyond the basics
The 80% of the company’s growth come from its core industry while the remanning 20% is from secondary industry or expansion into new one.
Role of Finance Business partners:
Finance Business partners evaluate, which latest region of growth is at risk or an opportunity for the company by analysing the existing capabilities of the team. They develop clear process to evaluate the growth in new categories.
Know your strengths
Companies that grow in the similar areas with resemblance in portfolio reach higher.
Role of Finance Business partners:
By utilizing core strengths, capitalizing on economies of scale, elevating brand identity, initiating strategic partnerships, finance business partners facilitate businesses to grow similar areas.
Shine as a local leader
Without winning the local market, businesses can’t thrive.
Role of Finance Business partners:
Business partners know the local customers needs, and recommends valuable insights on how a company can utilize local influencers or community leaders that can promote the brand locally. Moreover, they keep a close eye on local competitors and use technology to enhance customer engagement.
When local is tough, expand globally
Companies that expand internationally grows more total shareholder return (TSR) than their peers.
Role of Finance Business partners:
It needs a thorough Market Research to develop a Strong Global Brand and monitor competitors and global market trends. These complex tasks can be handled by Finance business partners by using their expertise in financial analysis and strategic planning.
Build through structured acquisitions
The driving force behind shareholder returns lies in the patterns of deals, rather than merely the total transaction values.
Role of Finance Business partners:
In the assessment and improvement of deal patterns, Finance
Business Partners are vital for maximizing shareholder returns by
building organizational capabilities and covering everything from
strategy formulation sourcing to the execution of integration
plans.
For growth, less is more
If a company is not consistent in growth its better for it to reduce
its size and operations in order to perform better on the core strength and become more productive.
Role of Finance Business partners:
FBP in such cases examine the divesting non-essential assets, find cost-cutting plans and helps restructuring a smaller but more productive organization. To focus on long-term business sustainability, in today’s day and age finance business partners are key to the success of both large and small enterprises
SS&CO:
Pioneers of
Strategic
Financial Planning
When a company outsource financial business planning with SS&CO, we take all of your company’s financial duties off your plate and contribute in structuring effective financial plans. Our key services include,
Our team of experts provides deep harnesses market insights, develop tailored financial strategies, scale down the cost of operations and strengthen decision-making frameworks, we use robust technology to manage finance, tax and accounting functions so you can drive your business toward success with conviction and precision.
- Setting up Compliance Structure and Function
- Prepare and Implement Controls related to Operations Processes
- Advise on Cost of IT Systems and Implementation
- Fully managed Accounting, Finance and Tax Function
- Maintaining External Stakeholders Relationship
Meet the Expert
Mubashir Islam
Senior Manager – Tax and Financial Advisory
Mubashir Islam, Senior Manager at SS&Co, specializes in delivering expert tax and advisory services tailored for fintech innovations.
