Organisations nowadays have devised their own automated system or set of systems catering to their specific needs.
This is in the aim of producing timely financial data and other outputs, such as visualisations.
According to non-profit research organisation APQC, when these systems are optimised and are able to produce reliable data that finance professionals and senior leaders trust, then automation can reduce the number of full-time equivalents (FTEs) needed in this area, even during busy seasons.
If instead financial systems that are meant to increase efficiency generate inaccurate or unreliable results, APQC says it might be time to add personnel to improve system inputs and performance.
Skills needed
In terms of the skills people need in these positions, APQC says any finance professional must have the required accounting or actuarial know-how and related technical skills to do the job.
Interpersonal skills are also important, as analysts and modelers can be tasked with communicating complex financial data to colleagues in other functions or locations, or with quickly educating senior leaders.
Further, these people might also need to lead tough conversations about resource allocation. In this area of the organisation, resilience is another important trait, as staff members in finance experience notoriously high rates of turnover and burn out.
It is also a good idea to look into past performances as a key indicator, as looking back at the accuracy of past budgets and predictions is critical for determining whether current processes and staffing levels are adequate for achieving business success.
Business leaders should monitor this performance closely, because the forward-looking financial information these team members produce is ultimately used to steer the organisation.
APQC says business goals can also influence headcount decisions in finance, as if one company is going through a growth cycle, whether increasing sales volume or expanding to new locations, adding finance experts might help them achieve the desired performance.
Conversely, shifting economic conditions such as an oncoming recession or other shocks that stimulate rapid downsizing may signal the need for greater investment in the accuracy and reliability of financial plans, budgets, and projections.
Budget cycles, seasonal fluctuations, or other periods of low and high financial planning and forecasting activity can also prompt leaders to add or reduce finance staff. Ultimately, finance leaders need to assess their specific industry, business, and situation to make the best staffing decisions for the organisation.
