eBooks
Issue link: https://read.uberflip.com/i/909382
The 5 questions to ask your controller 7 Can we integrate our financial information and our operating metrics? Because many financial systems can now accommodate analyses of operating metrics to create a richer, fuller picture of the business, the controller is assuming a role as the provider of financial visibility—once the domain of financial planning and analysis (FP&A) teams or the CFO. Merging financial data and operational metrics could help your organization in the following ways: • Spot the opportunities: By virtue of their intimate involvement in virtually every accounting transaction, controllers have a unique perspective on corporate performance—and should be able to identify subtle (and not-so-subtle) opportunities to maximize revenue and minimize expense. • Emphasize operational metrics: The rising importance of operational metrics gives controllers the ability to collaborate with other areas of the company to manage their functions in non-financial terms� Examples include product shipments, raw-material inventories, delivery performance, returns, customer acquisition cost, churn, and more� Ultimately, these operational metrics reconcile 100-percent with GAAP financials. • Establish the financial truth: A single, merged reporting system ensures everyone works from the same playbook� If you have two or more reporting systems, you will spend unproductive time reconciling differences and untangling conflicting definitions. Revenue may be reported differently for GAAP, sales compensation, and board reporting purposes but should all be sourced from the same system� Key takeaway: Implement a single reporting system to eliminate unproductive reconciliation time. Q5