Lifting the barrier between finance and the rest of the company
The finance team is often overlooked as a key player in driving the business towards success. Usually termed the ‘bean counters’ in the company, they’re left to make sure the books add up, chase receipts at the end of every month, and find the company card that’s been misplaced (again).
The finance team and the way it collaborates with teams has untapped potential – something we’re exploring in this year’s Beyond 2024. This year’s edition of Pleo’s flagship event will allow finance and business professionals to explore a new and superior dimension for finance teams and their ways of working with the rest of the business.
The power of collaboration
You’ve heard the saying before: We’re stronger together. And this rings true in business, too. From emotional intelligence to the importance of collaboration and knowledge sharing.
And this is something Ann-Sophie Manzeschke, Reward Partner at Personio, can vouch for too, especially when it comes to HR.
"The biggest connection between HR and finance teams is the company’s most valuable asset - its people. The collaboration of both teams drives organisational performance, effectively managing the company’s workforce while ensuring healthy investments are made. Although the two teams might be coming from different perspectives, they are connected in their mission to foster the company’s employees and its growth."
As businesses navigate continued uncertain economic times, now more than ever, it’s crucial to consider the finance department as a key enabler in helping companies to scale all whilst ensuring they’re evolving. With an unmatched skill set and insights into business performance, finance holds the keys to managing profitability and producing data-driven decisions.
When there’s a relationship built between finance and other departments, the entire business can work more efficiently with clear, streamlined processes — all whilst working towards the same goal.
So, why is collaboration between finance and the rest of the company so important?
Improved decision-making, relying on accurate data
Decisions that are backed and informed with up-to-date financial information can often be the ones that make the difference. Having finance and the rest of the company playing on the same team is a win-win situation. Finance has eyes on the potential financial risks of certain investments allowing everyone to mitigate risks more effectively.
Making informed decisions backed by data is something Ciaran Chaney, Director, Real Estate, Workplace & IT at Pesonio, prioritises for their team — and thanks to finance, it’s possible. Our playbook ‘Good work: A playbook for stronger collaboration between HR and Finance’ goes into all the details.
“By having visibility into this key data from HR and Finance, I can make more informed decisions about IT resource allocation, prioritise projects that have a strong financial impact and ensure that IT infrastructure effectively supports the evolving needs of the workforce.” Ciaran Chaney, Director, Real Estate, Workplace & IT at Pesonio.
All hands on deck for cost control
Finance has budget insights that could help every team in the company optimise their spending, whether that’s for expenses or an allocated spend on campaigns. When finance collaborates with other teams, they can track performance, and spot opportunities to save or invest in certain areas. Cross-department collaboration also helps streamline workflows that answer every team’s priority, making it easier to work towards financial and operational efficiency.
For example, marketing and finance could (and should) be a match made in heaven — especially when it comes to budgeting. In our recent ‘Marketing meets finance: Smarter budgets, better results’ eBook, Emilia Lungu, Commercial Finance Lead at Pleo, shed light on why this collaboration is a win-win for everyone involved.
“Marketing is one of the biggest costs for most companies after payroll, so it’s in the finance team’s best interest to optimise the budget. When finance has a full overview of the financials, they can help the marketing team to spend more efficiently.”
Increased adaptability and resilience
If we’ve learned anything from the past few years in business, it’s that resilience is more important than ever. Cross-functional collaboration between finance and other teams allows the business as a whole to adjust to changing circumstances and strategies quickly.
Having finance siloed and working independently in the corner increases risk, leaving the rest of the company blind to making decisions about resources and budgeting.
Taking the first steps towards better collaboration
Collaboration can’t happen without everyone in the company invested and on board. To get the ball rolling, teams need to build partnerships across departments (and maybe even offices), foster a culture of open communication, and stay continually aligned with goals and strategies.
As mentioned before, this is something we’ll be exploring further at Beyond, and there’s even more on the way...
Our upcoming report will take an even closer look into the power of cross-functionality and the current state of collaboration between finance teams and businesses across Europe. Backed by data. We’ll provide more insight into why it’s the key to business success, and how to get teams working together.
Keep your eyes peeled. 👀
