Nobody knows better than you. After all, you're the CEO. You know what the engineers are doing; you know what the production managers are doing; and nobody knows better the sales process. You know who carries the weight and who does not. That is, unless we talk about financial and accounting executives.
Most CEOs, especially small and medium-sized businesses, come from operating or sales backgrounds. They have often gained some knowledge of finances and accounting through their careers, but only to the extent necessary. But the Chief Executive is to judge the performance and competence of the accountants as well as the operations and sales managers.
So, how do you care about the company's financial and accounting functions with the careful CEO? The CEO often assigns a qualitative value to the quantitative message. In other words, if the Controller provides a positive, positive financial report, the CEO will receive positive emotions towards the Controller. And if the controller sends a whimsical message, the CEO will have a negative reaction to the person. Unfortunately, "the messenger's recruitment" is not uncommon at all.
The hazards inherent in the approach must be obvious. The Controller (or the CFO, Accountant, Anyone) can recognize that numbers need to look better than in reality to protect their careers or to focus attention on negative matters and focus on positive issues. This increases the likelihood that important issues do not get the attention they deserve. It also takes on the likelihood that good people can lose for bad reasons.
Large Enterprise CEOs have a big advantage when evaluating the performance of the financial department. They have the audit committee of the board of directors, the auditor, the SEC, the Wall Street analyst and the public shareholders, which gives feedback. In smaller businesses, however, the CEO has to develop his own methods and procedures to evaluate the performance of financial managers.
Some suggestions for Small Business CEO:
It is possible that at some point in your career you are advised to insist on the "timely and accurate" financial statements of the accounting group. Unfortunately, he is probably a very good judge in time, but he may not be as good as the judge. Of course, I do not have time to test the transactions and check the accuracy of the reports, but there are things you can do and do.
- Insist that financial reports include comparisons for different periods. This allows you to judge the consistency of registration and reporting transactions
- Make sure you explain all anomalies
- Repetitive expenses, such as rents and utilities, must be reported at the appropriate time. The explanation is – "There are two rentals in April because we paid it early" – unacceptable. May rent should be reported as May expenditure
- At times, please remember the company's revenue and cost savings policy, and so on.
Beyond Monthly Financial Reports
You can expect to receive information on your accounting and financial groups on a daily basis, not just on the expiration of monthly financial reports. Some good examples:
Uniform Workplace Habits
We all knew people who were easier on weekdays and then spent a full night to comply with a deadline. Such controversial working methods are a strong sign that an individual does not pay attention to the processes. It sharpens the likelihood of mistakes in the crazy last minute.
The Chief Executive Officer must make clear to financial / accounting executives that you are looking for sincere and honest information and will not be the victim of "shoot the messenger" thinking. If this is the guarantee, financial managers should be an organizational part of the company's management. You should not be reluctant to express your concerns or concerns to yourself or to other department heads.
Source by sbobet