This episode comes with a flavor of Finance 101 for beginners, and we have the best guest to give that introduction. Mohamed ELRouby is a sessional finance leader and a well-known Finance active that promotes the value creation of Finance and the important role of Finance business partners in business.
We have started the episode with the myth and truth about Finance, which is essential to highlight before introducing the Finance function.
1- Cutting budget vs ROI partnering:
Finance wrong perception that they always cut the budget and use every opportunity to be slim on the budget to maximize profit regarding the business understanding or need. However, Mohamed shared how Finance can partner on how to spend the money more rationally, ensuring ROI, and we're gearing resources in the right direction, asking the right questions to align investment with company strategy.
2- Numbers Only vs What is behind number:
Another point has been shared that Finance only focuses since most of their work on numbers, so they got obsessed with only numbers, which is again not true and the role of Finance to understand what is behind the number, the business story behind numbers, commercial drivers and business logic that generates these numbers.
3- Process and System oriented vs business oriented:
The last point is that Finance is obsessed with processes and systems and doesn't belong to business; however, it should be business oriented, which is critical for the company's value creation and protection.
Non-Finance professionals need to understand who is doing what in Finance and who they should approach for different financial support required to grow the business.
Finance planning and Analysis ( FP&A) or commercial Finance:
Accounting and controlling:
Treasury:
Tax:
Internal audit and control :
Mohamed ELRouby shared that a great concept about Finance business partners is a mindset that is not linked to seniority or entry-level within Finance. Suppose you are keen to support business, turn data into insights, and have the curiosity to understand business and what is behind numbers. In that case, you're a true finance business partner, but if you act like a policeman. Some people label the CFOs as CFNOs as CFOs keep saying Nos to all requests, and partners are avoiding dealing with them.
"Finance business partner is not a title; It's a mindset, "said Mohamed
