SlideShare a Scribd company logo
1 of 22
Download to read offline
Finance trends
Modernizing finance
in private companies
So where is finance today?
On average, CFOs/
finance leaders
spend almost
one- quarter of their
time on reporting
financial position and
operations—more
time than they spend
on any other activity
87%
Almost nine out of
10 finance teams
(87%) struggle to
keep up with their
current workload
1/4 85%
Of CFOs/finance
leaders believe their
CEOs place a high
priority on the finance
team providing
insights to senior
management
Source: Deloitte Canadian CFO/Finance leader survey, 2016
Where would finance like to be?
More than 9/10 of
CFOs/finance leaders
believe improved
tools for forecasting,
reporting and/or
budgeting would be
effective in helping
them achieve
greater success
94%
Of CFOs/finance
leaders feel that
automating manual
tasks would be
effective in helping
them achieve
greater success
9/10 92%
Of CFOs/finance
leaders say better
aligned skills in
the finance team
are needed
Source: Deloitte Canadian CFO/Finance leader survey, 2016
Private company growth
The evolution of a typical private
company begins with a start- up
stage, where growth is slow,
but steady. This is followed by
a stage of rapid growth in the
first five years of operation, after
which the growth curve levels off
as the company reaches maturity.
Many private company finance
leaders anticipate the need for
their teams to mature and acquire
greater competencies as the
business grows.
Leading private companies are
investing to modernize finance
All private companies can
build finance’s capabilities by
focusing on three critical needs:
1.	 Improving the efficiency
of reporting
2.	Providing better
operational insights
3.	Building a stronger, more
client-focused finance team
Reporting to stakeholders
consumes so much of finance’s
time because of:
Automation
Most teams still rely
heavily on manual
journal entries
Disparate systems
Many companies
use multiple
disparate systems
in the financial close
and reporting cycle
Lack of
communication
People involved in the
reporting process are
often unclear about
the work done by
others and how their
work interrelates
1 Improving the efficiency
of reporting
Overuse of spreadsheets
Almost all CFOs and their
teams use spreadsheets for
financial reporting,
forecasting, and providing
financial insights—while
useful tools, as businesses
grow and become more
complex, there is increased
risk of corruption, version
control and general errors.
1 Improving the efficiency
of reporting
Solutions are available
A growing number of
finance teams are replacing
spreadsheets with cloud- based
software, planning and
forecasting tools, and
data visualization tools to
automatically generate data
and provide end users with
the ability to drill down into
that information.
Solutions are feasible
The tools available to connect
the financial process across
the organization have changed
dramatically in recent years.
Finance leaders who research and
assess the options currently available
will likely find that the time, effort
and money needed to implement
tools to automate processes, embed
control, and empower end users is
significantly less than they expect.
1 Improving the efficiency
of reporting
Questions to consider:
1.	 What is your finance
systems strategy?
2.	Is this system right for me?
3.	When should I adopt?
4.	How do I implement?
Private company finance teams
produce volumes of static
spreadsheet reports as different
users want information about
different aspects of the business.
It takes a significant amount of
manual effort to adapt/revise
each report to meet users’ needs.
2 Providing better operational
insights into the business
2 Providing better operational
insights into the business
Data visualization tools can be used to bridge
the translation gap between finance and the
business owner and other leaders and allow
for business conversations.
These tools enable finance teams to reposition
and repurpose the data they collect to present
it in a way that is more meaningful and clearly
present the business’s performance drivers in
a user friendly, more meaningful manner.
Many finance leaders have a hard time:
1.	 Developing and retaining their
current team members
2.	Finding the right people,
at the right price, to fill gaps
3 Building a stronger, more
client-focused finance team
Tactics to build a strong team include:
1.	Better performance management processes—
including clear performance goals that team
members are also evaluated against and stretch
targets for each level/role
2.	An increased focus on talent development
and continuous learning—including a formal
learning and growth plan for each level/role
3.	Clear succession planning
3 Building a stronger, more
client-focused finance team
As the business grows
Canadian private companies tend to grow rapidly
in their first five years of operation, after which
they often lose momentum. However, many
private companies create a new growth cycle
through a disruptive event.
An unexpected change
in market conditions
Every private company will face a major
disruptive event at some point in time
A major acquisition or
divestiture opportunity
Transition to
a public company
The need for new financing
through private equity
Transition of ownership
Finance can’t afford
to wait to consider
how to deal with
disruptive events
When private companies encounter
disruptive events, the finance team’s
capabilities will often determine its
success in managing those events.
If unprepared, finance can become
a bottleneck to the business,
limiting, and potentially degrading,
its ability to capitalize on the event,
potentially resulting in a devaluation
of enterprise value.
Finance can’t afford
to wait to consider
how to deal with
disruptive events
These events can arise suddenly,
and companies often have a limited
amount of time to take advantage
of them.
87% of finance teams already struggle
to keep up with their current workload.
Dealing with disruptive events has the
potential to significantly increase the
demands on finance.
Finance can’t afford
to wait to consider
how to deal with
disruptive events
Companies need to determine—
well in advance—what they need
to do to become “event ready”
and then take the steps to build
the required capabilities.
Finance has a key role to play
in successfully managing
disruptive events
Disruptive events put pressure on
companies and their finance teams,
quickly revealing any weaknesses in
people and processes—particularly
with respect to the allocation of time
and effort required to deal with these
new demands. To be prepared, finance
leaders need to perform an impact
analysis and readiness assessment
well before a disruptive event arises.
Readiness assessment
and impact analysis
The readiness assessment
should include the likelihood
of the scenario occurring and
an assessment of the time, effort
and financial investment required
to deal with the new demands
that will impact the financial
processes, technology and talent.
The CFO/finance leader will then
need to determine where the
gaps exist and which can be
improved upon now.
The path between the concept
and reality of the event is
always shorter than expected.
It is always better to perform
the impact assessment
and perform the tactical
elements required to move
the finance team into a better
state to be able to deal with
an event in advance.
But how many finance
teams are actually
preparing themselves?
Unfortunately, many companies
believe they can wait until
a disruptive event is on the horizon
before investing to build their
finance team’s capabilities—and
building those capabilities almost
always takes longer than expected.
Having a plan to modernize the
finance function is important
under normal growth cycles.
But when disruption occurs,
a mature finance team isn’t
just important—it’s critical.
Read the full report
Finance trends
Modernizing finance in private companies
www.deloitte.ca/financetrends
www.deloitte.ca
© Deloitte LLP and affiliated entities.
Designed and produced by the Deloitte Design Studio, Canada. 16-4176T
Contact
Michael Goodfellow
Partner, Audit Advisory
+1 (416) 643 8027
mgoodfellow@deloitte.ca
Bruce Chin
Partner, Audit Advisory
+1 (416) 643 8949
brchin@deloitte.ca
Mike Runia
Partner, Deloitte Private
+1 (613) 751 6693
mrunia@deloitte.ca
Mark Wayland
Partner, Deloitte Private
+1 (416) 601 6074
mawayland@deloitte.ca
Hitesh Peshavaria
Partner, Audit Advisory
+1 (416) 874 4446
hpeshavaria@deloitte.ca
Brandon Weekes
Partner, Audit Advisory
+1 (416) 775 7203
bweekes@deloitte.ca
France Boudreau
Partner, Audit Advisory
+1 (514) 393 5170
fboudreau@deloitte.ca
Kari Lockhart
Partner, Audit Advisory
+1 (604) 640 4910
klockhart@deloitte.ca

More Related Content

What's hot

EBITDA Improvement
EBITDA ImprovementEBITDA Improvement
EBITDA Improvement
John A. Bova
 
magnifeye-business-vision-barometer
magnifeye-business-vision-barometermagnifeye-business-vision-barometer
magnifeye-business-vision-barometer
Jason Neale
 
Guest Speaker at CFO of the Future, Institute of Chartered Accountants
Guest Speaker at CFO of the Future,  Institute of Chartered AccountantsGuest Speaker at CFO of the Future,  Institute of Chartered Accountants
Guest Speaker at CFO of the Future, Institute of Chartered Accountants
Susan O'Neill
 

What's hot (19)

Cash is King
Cash is KingCash is King
Cash is King
 
The Future of Finance Function
The Future of Finance FunctionThe Future of Finance Function
The Future of Finance Function
 
Corality - Cash flow management for critical decision making
Corality - Cash flow management for critical decision makingCorality - Cash flow management for critical decision making
Corality - Cash flow management for critical decision making
 
EBITDA Improvement
EBITDA ImprovementEBITDA Improvement
EBITDA Improvement
 
CFO: The Strategist - EU & ASEAN Report
CFO: The Strategist - EU & ASEAN ReportCFO: The Strategist - EU & ASEAN Report
CFO: The Strategist - EU & ASEAN Report
 
5 questions to ask about a budget
5 questions to ask about a budget5 questions to ask about a budget
5 questions to ask about a budget
 
Finance Dept Strategy
Finance Dept StrategyFinance Dept Strategy
Finance Dept Strategy
 
Financial Analysis Series: Operational analysis
Financial Analysis Series: Operational analysisFinancial Analysis Series: Operational analysis
Financial Analysis Series: Operational analysis
 
SME World_Article
SME World_ArticleSME World_Article
SME World_Article
 
The Changing Role Of The CFO
The Changing Role Of The CFOThe Changing Role Of The CFO
The Changing Role Of The CFO
 
30 Questions to Answer Before You Sell Your Business
30 Questions to Answer Before You Sell Your Business30 Questions to Answer Before You Sell Your Business
30 Questions to Answer Before You Sell Your Business
 
The Role of The CFO
The Role of The CFOThe Role of The CFO
The Role of The CFO
 
Do You Know Merger Math?
Do You Know Merger Math?Do You Know Merger Math?
Do You Know Merger Math?
 
Venture Capital Operating Model
Venture Capital Operating ModelVenture Capital Operating Model
Venture Capital Operating Model
 
Best in Class Finance Transformation - Best Practices for the Finance Function
Best in Class Finance Transformation - Best Practices for the Finance FunctionBest in Class Finance Transformation - Best Practices for the Finance Function
Best in Class Finance Transformation - Best Practices for the Finance Function
 
Finance Transformation
Finance TransformationFinance Transformation
Finance Transformation
 
Why Businesses Fail And Some Of The Warning Signs Of Insolvency
Why Businesses Fail And Some Of The Warning Signs Of InsolvencyWhy Businesses Fail And Some Of The Warning Signs Of Insolvency
Why Businesses Fail And Some Of The Warning Signs Of Insolvency
 
magnifeye-business-vision-barometer
magnifeye-business-vision-barometermagnifeye-business-vision-barometer
magnifeye-business-vision-barometer
 
Guest Speaker at CFO of the Future, Institute of Chartered Accountants
Guest Speaker at CFO of the Future,  Institute of Chartered AccountantsGuest Speaker at CFO of the Future,  Institute of Chartered Accountants
Guest Speaker at CFO of the Future, Institute of Chartered Accountants
 

Viewers also liked

Moving beyond multichannel: A Deloitte perspective on customer experience in ...
Moving beyond multichannel: A Deloitte perspective on customer experience in ...Moving beyond multichannel: A Deloitte perspective on customer experience in ...
Moving beyond multichannel: A Deloitte perspective on customer experience in ...
Deloitte Canada
 
About Deloitte 2010
About Deloitte 2010About Deloitte 2010
About Deloitte 2010
Callum Bir
 
152633980 accrual-reconciliation-process-and-troubleshooting-in-r12-pdf
152633980 accrual-reconciliation-process-and-troubleshooting-in-r12-pdf152633980 accrual-reconciliation-process-and-troubleshooting-in-r12-pdf
152633980 accrual-reconciliation-process-and-troubleshooting-in-r12-pdf
narane1976
 

Viewers also liked (19)

Tendances financières Moderniser la fonction finance dans les sociétés privées
Tendances financières Moderniser la fonction finance dans les sociétés privéesTendances financières Moderniser la fonction finance dans les sociétés privées
Tendances financières Moderniser la fonction finance dans les sociétés privées
 
Disruptive forces: Build your band of heroes
Disruptive forces: Build your band of heroesDisruptive forces: Build your band of heroes
Disruptive forces: Build your band of heroes
 
Corporate reporting: Exploring a new world
Corporate reporting: Exploring a new worldCorporate reporting: Exploring a new world
Corporate reporting: Exploring a new world
 
TMT Predictions 2017
TMT Predictions 2017TMT Predictions 2017
TMT Predictions 2017
 
Finance 2020: Designing a Finance function to meet new demands
Finance 2020: Designing a Finance function to meet new demandsFinance 2020: Designing a Finance function to meet new demands
Finance 2020: Designing a Finance function to meet new demands
 
Moderniser la fonction finance : Pourquoi il importe d’agir maintenant, et co...
Moderniser la fonction finance : Pourquoi il importe d’agir maintenant, et co...Moderniser la fonction finance : Pourquoi il importe d’agir maintenant, et co...
Moderniser la fonction finance : Pourquoi il importe d’agir maintenant, et co...
 
Growth: the cost and digital imperative
Growth: the cost and digital imperativeGrowth: the cost and digital imperative
Growth: the cost and digital imperative
 
Moving beyond multichannel: A Deloitte perspective on customer experience in ...
Moving beyond multichannel: A Deloitte perspective on customer experience in ...Moving beyond multichannel: A Deloitte perspective on customer experience in ...
Moving beyond multichannel: A Deloitte perspective on customer experience in ...
 
Se rendre irrésistible pour une opération de F&A – sept conseils pour vous pr...
Se rendre irrésistible pour une opération de F&A – sept conseils pour vous pr...Se rendre irrésistible pour une opération de F&A – sept conseils pour vous pr...
Se rendre irrésistible pour une opération de F&A – sept conseils pour vous pr...
 
L’analytique et l’avenir
L’analytique et l’avenirL’analytique et l’avenir
L’analytique et l’avenir
 
About Deloitte 2010
About Deloitte 2010About Deloitte 2010
About Deloitte 2010
 
152633980 accrual-reconciliation-process-and-troubleshooting-in-r12-pdf
152633980 accrual-reconciliation-process-and-troubleshooting-in-r12-pdf152633980 accrual-reconciliation-process-and-troubleshooting-in-r12-pdf
152633980 accrual-reconciliation-process-and-troubleshooting-in-r12-pdf
 
Take steps to increase HR Compliance and stay Competitive
Take steps to increase HR Compliance and stay CompetitiveTake steps to increase HR Compliance and stay Competitive
Take steps to increase HR Compliance and stay Competitive
 
Ppt ft 1
Ppt ft 1Ppt ft 1
Ppt ft 1
 
Scope of Financial Management
Scope of Financial Management Scope of Financial Management
Scope of Financial Management
 
Business Financing Options Workshop Batesville July
Business Financing Options Workshop Batesville JulyBusiness Financing Options Workshop Batesville July
Business Financing Options Workshop Batesville July
 
Business Finance Fund 2013
Business Finance Fund 2013Business Finance Fund 2013
Business Finance Fund 2013
 
How best can you finance your business
How best can you finance your businessHow best can you finance your business
How best can you finance your business
 
Time to embrace new opportunities - MBA Finance
Time to embrace new opportunities   - MBA FinanceTime to embrace new opportunities   - MBA Finance
Time to embrace new opportunities - MBA Finance
 

Similar to Finance trends Modernizing finance in private companies

University of rizal system2
University of rizal system2University of rizal system2
University of rizal system2
Imee Limos
 
Corporate Renewal Industry Overview
Corporate Renewal Industry OverviewCorporate Renewal Industry Overview
Corporate Renewal Industry Overview
Jim Huntsman
 
Farrell Advisory Closing Performance Gaps EXT LINK
Farrell Advisory Closing  Performance Gaps EXT LINKFarrell Advisory Closing  Performance Gaps EXT LINK
Farrell Advisory Closing Performance Gaps EXT LINK
David Farrell
 
Forecasting in uncertain conditions
Forecasting in uncertain conditionsForecasting in uncertain conditions
Forecasting in uncertain conditions
TCM infosys
 
Cash management - Exchange - Article 1
Cash management - Exchange - Article 1Cash management - Exchange - Article 1
Cash management - Exchange - Article 1
Ankur Bhandari
 
FINC 340 InvestmentsHow to Create an Investment StrategyThe .docx
FINC 340 InvestmentsHow to Create an Investment StrategyThe .docxFINC 340 InvestmentsHow to Create an Investment StrategyThe .docx
FINC 340 InvestmentsHow to Create an Investment StrategyThe .docx
voversbyobersby
 
BioStrategy - Feb 09 - Role of CFO at a new venture
BioStrategy - Feb 09 - Role of CFO at a new ventureBioStrategy - Feb 09 - Role of CFO at a new venture
BioStrategy - Feb 09 - Role of CFO at a new venture
thess1121
 
Planning For Long-Term Success Of A Business
Planning For Long-Term Success Of A BusinessPlanning For Long-Term Success Of A Business
Planning For Long-Term Success Of A Business
Liz Sims
 
AN OVERVIEW TO FINANCIAL MANAGEMENT WEEK 1. 6000B(1).pptx
AN OVERVIEW TO FINANCIAL MANAGEMENT WEEK 1. 6000B(1).pptxAN OVERVIEW TO FINANCIAL MANAGEMENT WEEK 1. 6000B(1).pptx
AN OVERVIEW TO FINANCIAL MANAGEMENT WEEK 1. 6000B(1).pptx
irynmwangi3
 

Similar to Finance trends Modernizing finance in private companies (20)

Wcm remedies concl
Wcm remedies conclWcm remedies concl
Wcm remedies concl
 
Ernst & Young - Private Equity primed for new opportunities
Ernst & Young - Private Equity primed for new opportunitiesErnst & Young - Private Equity primed for new opportunities
Ernst & Young - Private Equity primed for new opportunities
 
Upping your game: Realigning the four faces of finance
Upping your game: Realigning the four faces of financeUpping your game: Realigning the four faces of finance
Upping your game: Realigning the four faces of finance
 
University of rizal system2
University of rizal system2University of rizal system2
University of rizal system2
 
[Whitepaper] Strategic finance, the new king
[Whitepaper] Strategic finance, the new king[Whitepaper] Strategic finance, the new king
[Whitepaper] Strategic finance, the new king
 
EXL_WP_Chief_Growth_Officer_-_a_new_role_for_todays_CFO.pdf
EXL_WP_Chief_Growth_Officer_-_a_new_role_for_todays_CFO.pdfEXL_WP_Chief_Growth_Officer_-_a_new_role_for_todays_CFO.pdf
EXL_WP_Chief_Growth_Officer_-_a_new_role_for_todays_CFO.pdf
 
How the CFO Can be an Effective Partner to the CEO in Navigating the Pandemic...
How the CFO Can be an Effective Partner to the CEO in Navigating the Pandemic...How the CFO Can be an Effective Partner to the CEO in Navigating the Pandemic...
How the CFO Can be an Effective Partner to the CEO in Navigating the Pandemic...
 
Cfo getting it all done e book
Cfo getting it all done e bookCfo getting it all done e book
Cfo getting it all done e book
 
Corporate Renewal Industry Overview
Corporate Renewal Industry OverviewCorporate Renewal Industry Overview
Corporate Renewal Industry Overview
 
Planning budgeting forecasting
Planning budgeting forecastingPlanning budgeting forecasting
Planning budgeting forecasting
 
Objectives of Financial Management.pptx
Objectives of Financial Management.pptxObjectives of Financial Management.pptx
Objectives of Financial Management.pptx
 
Farrell Advisory Closing Performance Gaps EXT LINK
Farrell Advisory Closing  Performance Gaps EXT LINKFarrell Advisory Closing  Performance Gaps EXT LINK
Farrell Advisory Closing Performance Gaps EXT LINK
 
Forecasting in uncertain conditions
Forecasting in uncertain conditionsForecasting in uncertain conditions
Forecasting in uncertain conditions
 
Cash management - Exchange - Article 1
Cash management - Exchange - Article 1Cash management - Exchange - Article 1
Cash management - Exchange - Article 1
 
Paper -future_of_finance_function
Paper  -future_of_finance_functionPaper  -future_of_finance_function
Paper -future_of_finance_function
 
FINC 340 InvestmentsHow to Create an Investment StrategyThe .docx
FINC 340 InvestmentsHow to Create an Investment StrategyThe .docxFINC 340 InvestmentsHow to Create an Investment StrategyThe .docx
FINC 340 InvestmentsHow to Create an Investment StrategyThe .docx
 
BioStrategy - Feb 09 - Role of CFO at a new venture
BioStrategy - Feb 09 - Role of CFO at a new ventureBioStrategy - Feb 09 - Role of CFO at a new venture
BioStrategy - Feb 09 - Role of CFO at a new venture
 
Planning For Long-Term Success Of A Business
Planning For Long-Term Success Of A BusinessPlanning For Long-Term Success Of A Business
Planning For Long-Term Success Of A Business
 
AN OVERVIEW TO FINANCIAL MANAGEMENT WEEK 1. 6000B(1).pptx
AN OVERVIEW TO FINANCIAL MANAGEMENT WEEK 1. 6000B(1).pptxAN OVERVIEW TO FINANCIAL MANAGEMENT WEEK 1. 6000B(1).pptx
AN OVERVIEW TO FINANCIAL MANAGEMENT WEEK 1. 6000B(1).pptx
 
Accenture 2014 High Performance Finance Study 1 Accenture 2014 High Performan...
Accenture 2014 High Performance Finance Study 1 Accenture 2014 High Performan...Accenture 2014 High Performance Finance Study 1 Accenture 2014 High Performan...
Accenture 2014 High Performance Finance Study 1 Accenture 2014 High Performan...
 

More from Deloitte Canada

More from Deloitte Canada (17)

Prédictions TMT 2020 finale
Prédictions TMT 2020 finalePrédictions TMT 2020 finale
Prédictions TMT 2020 finale
 
TMT Predictions 2020 Final
TMT Predictions 2020 FinalTMT Predictions 2020 Final
TMT Predictions 2020 Final
 
Prédictions TMT 2019
Prédictions TMT 2019Prédictions TMT 2019
Prédictions TMT 2019
 
TMT Predictions 2019
TMT Predictions 2019TMT Predictions 2019
TMT Predictions 2019
 
Femmes leaders de la Fiscalité de Deloitte pour 2018 FR
Femmes leaders de la Fiscalité de Deloitte pour 2018 FRFemmes leaders de la Fiscalité de Deloitte pour 2018 FR
Femmes leaders de la Fiscalité de Deloitte pour 2018 FR
 
Deloitte’s 2018 Women in Tax Leaders EN
Deloitte’s 2018 Women in Tax Leaders ENDeloitte’s 2018 Women in Tax Leaders EN
Deloitte’s 2018 Women in Tax Leaders EN
 
Deloitte’s 2017 Women in Tax Leaders
Deloitte’s 2017 Women in Tax LeadersDeloitte’s 2017 Women in Tax Leaders
Deloitte’s 2017 Women in Tax Leaders
 
Femmes leaders - Fiscalité Deloitte 2017
Femmes leaders - Fiscalité Deloitte 2017Femmes leaders - Fiscalité Deloitte 2017
Femmes leaders - Fiscalité Deloitte 2017
 
Croissance: les couts et les imperatifs du numerique
Croissance: les couts et les imperatifs du numeriqueCroissance: les couts et les imperatifs du numerique
Croissance: les couts et les imperatifs du numerique
 
Prédictions TMT 2017 de Deloitte
Prédictions TMT 2017 de DeloittePrédictions TMT 2017 de Deloitte
Prédictions TMT 2017 de Deloitte
 
Poser des questions d’abord, tirer ensuite – 12 mesures à prendre pour amélio...
Poser des questions d’abord, tirer ensuite – 12 mesures à prendre pour amélio...Poser des questions d’abord, tirer ensuite – 12 mesures à prendre pour amélio...
Poser des questions d’abord, tirer ensuite – 12 mesures à prendre pour amélio...
 
Tendances relatives au capital humain en 2016 : Le leader canadien est-il déc...
Tendances relatives au capital humain en 2016 : Le leader canadien est-il déc...Tendances relatives au capital humain en 2016 : Le leader canadien est-il déc...
Tendances relatives au capital humain en 2016 : Le leader canadien est-il déc...
 
Vrai ou faux? Dix hypothèses sur les F&A que les sociétés privées devraient r...
Vrai ou faux? Dix hypothèses sur les F&A que les sociétés privées devraient r...Vrai ou faux? Dix hypothèses sur les F&A que les sociétés privées devraient r...
Vrai ou faux? Dix hypothèses sur les F&A que les sociétés privées devraient r...
 
Forces perturbatrices : Formez votre équipe de héros
Forces perturbatrices : Formez votre équipe de hérosForces perturbatrices : Formez votre équipe de héros
Forces perturbatrices : Formez votre équipe de héros
 
Transforming governments through digital technologies. Five factors that inf...
Transforming governments through digital technologies.  Five factors that inf...Transforming governments through digital technologies.  Five factors that inf...
Transforming governments through digital technologies. Five factors that inf...
 
Transformer les organismes gouvernementaux grâce aux technologies numériques....
Transformer les organismes gouvernementaux grâce aux technologies numériques....Transformer les organismes gouvernementaux grâce aux technologies numériques....
Transformer les organismes gouvernementaux grâce aux technologies numériques....
 
Matière de présentation de l’information par les sociétés : Explorer la nouve...
Matière de présentation de l’information par les sociétés : Explorer la nouve...Matière de présentation de l’information par les sociétés : Explorer la nouve...
Matière de présentation de l’information par les sociétés : Explorer la nouve...
 

Recently uploaded

zidauu _business communication.pptx /pdf
zidauu _business  communication.pptx /pdfzidauu _business  communication.pptx /pdf
zidauu _business communication.pptx /pdf
zukhrafshabbir
 
What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...
srcw2322l101
 
Constitution of Company Article of Association
Constitution of Company Article of AssociationConstitution of Company Article of Association
Constitution of Company Article of Association
seri bangash
 

Recently uploaded (20)

Potato Flakes Manufacturing Plant Project Report.pdf
Potato Flakes Manufacturing Plant Project Report.pdfPotato Flakes Manufacturing Plant Project Report.pdf
Potato Flakes Manufacturing Plant Project Report.pdf
 
zidauu _business communication.pptx /pdf
zidauu _business  communication.pptx /pdfzidauu _business  communication.pptx /pdf
zidauu _business communication.pptx /pdf
 
What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...What is paper chromatography, principal, procedure,types, diagram, advantages...
What is paper chromatography, principal, procedure,types, diagram, advantages...
 
How Do Venture Capitalists Make Decisions?
How Do Venture Capitalists Make Decisions?How Do Venture Capitalists Make Decisions?
How Do Venture Capitalists Make Decisions?
 
Series A Fundraising Guide (Investing Individuals Improving Our World) by Accion
Series A Fundraising Guide (Investing Individuals Improving Our World) by AccionSeries A Fundraising Guide (Investing Individuals Improving Our World) by Accion
Series A Fundraising Guide (Investing Individuals Improving Our World) by Accion
 
MichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfMichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdf
 
Unveiling Gemini: Traits and Personality of the Twins
Unveiling Gemini: Traits and Personality of the TwinsUnveiling Gemini: Traits and Personality of the Twins
Unveiling Gemini: Traits and Personality of the Twins
 
Blinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptx
Blinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptxBlinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptx
Blinkit: Revolutionizing the On-Demand Grocery Delivery Service.pptx
 
Special Purpose Vehicle (Purpose, Formation & examples)
Special Purpose Vehicle (Purpose, Formation & examples)Special Purpose Vehicle (Purpose, Formation & examples)
Special Purpose Vehicle (Purpose, Formation & examples)
 
Event Report - IBM Think 2024 - It is all about AI and hybrid
Event Report - IBM Think 2024 - It is all about AI and hybridEvent Report - IBM Think 2024 - It is all about AI and hybrid
Event Report - IBM Think 2024 - It is all about AI and hybrid
 
Engagement Rings vs Promise Rings | Detailed Guide
Engagement Rings vs Promise Rings | Detailed GuideEngagement Rings vs Promise Rings | Detailed Guide
Engagement Rings vs Promise Rings | Detailed Guide
 
Elevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO ServicesElevate Your Online Presence with SEO Services
Elevate Your Online Presence with SEO Services
 
Constitution of Company Article of Association
Constitution of Company Article of AssociationConstitution of Company Article of Association
Constitution of Company Article of Association
 
Revolutionizing Industries: The Power of Carbon Components
Revolutionizing Industries: The Power of Carbon ComponentsRevolutionizing Industries: The Power of Carbon Components
Revolutionizing Industries: The Power of Carbon Components
 
Creative Ideas for Interactive Team Presentations
Creative Ideas for Interactive Team PresentationsCreative Ideas for Interactive Team Presentations
Creative Ideas for Interactive Team Presentations
 
بروفايل شركة ميار الخليج للاستشارات الهندسية.pdf
بروفايل شركة ميار الخليج للاستشارات الهندسية.pdfبروفايل شركة ميار الخليج للاستشارات الهندسية.pdf
بروفايل شركة ميار الخليج للاستشارات الهندسية.pdf
 
HR and Employment law update: May 2024.
HR and Employment law update:  May 2024.HR and Employment law update:  May 2024.
HR and Employment law update: May 2024.
 
PitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for StartupsPitchBook’s Guide to VC Funding for Startups
PitchBook’s Guide to VC Funding for Startups
 
Team-Spandex-Northern University-CS1035.
Team-Spandex-Northern University-CS1035.Team-Spandex-Northern University-CS1035.
Team-Spandex-Northern University-CS1035.
 
Unleash Data Power with EnFuse Solutions' Comprehensive Data Management Servi...
Unleash Data Power with EnFuse Solutions' Comprehensive Data Management Servi...Unleash Data Power with EnFuse Solutions' Comprehensive Data Management Servi...
Unleash Data Power with EnFuse Solutions' Comprehensive Data Management Servi...
 

Finance trends Modernizing finance in private companies

  • 2. So where is finance today? On average, CFOs/ finance leaders spend almost one- quarter of their time on reporting financial position and operations—more time than they spend on any other activity 87% Almost nine out of 10 finance teams (87%) struggle to keep up with their current workload 1/4 85% Of CFOs/finance leaders believe their CEOs place a high priority on the finance team providing insights to senior management Source: Deloitte Canadian CFO/Finance leader survey, 2016
  • 3. Where would finance like to be? More than 9/10 of CFOs/finance leaders believe improved tools for forecasting, reporting and/or budgeting would be effective in helping them achieve greater success 94% Of CFOs/finance leaders feel that automating manual tasks would be effective in helping them achieve greater success 9/10 92% Of CFOs/finance leaders say better aligned skills in the finance team are needed Source: Deloitte Canadian CFO/Finance leader survey, 2016
  • 4. Private company growth The evolution of a typical private company begins with a start- up stage, where growth is slow, but steady. This is followed by a stage of rapid growth in the first five years of operation, after which the growth curve levels off as the company reaches maturity. Many private company finance leaders anticipate the need for their teams to mature and acquire greater competencies as the business grows.
  • 5. Leading private companies are investing to modernize finance All private companies can build finance’s capabilities by focusing on three critical needs: 1. Improving the efficiency of reporting 2. Providing better operational insights 3. Building a stronger, more client-focused finance team
  • 6. Reporting to stakeholders consumes so much of finance’s time because of: Automation Most teams still rely heavily on manual journal entries Disparate systems Many companies use multiple disparate systems in the financial close and reporting cycle Lack of communication People involved in the reporting process are often unclear about the work done by others and how their work interrelates 1 Improving the efficiency of reporting
  • 7. Overuse of spreadsheets Almost all CFOs and their teams use spreadsheets for financial reporting, forecasting, and providing financial insights—while useful tools, as businesses grow and become more complex, there is increased risk of corruption, version control and general errors. 1 Improving the efficiency of reporting Solutions are available A growing number of finance teams are replacing spreadsheets with cloud- based software, planning and forecasting tools, and data visualization tools to automatically generate data and provide end users with the ability to drill down into that information.
  • 8. Solutions are feasible The tools available to connect the financial process across the organization have changed dramatically in recent years. Finance leaders who research and assess the options currently available will likely find that the time, effort and money needed to implement tools to automate processes, embed control, and empower end users is significantly less than they expect. 1 Improving the efficiency of reporting Questions to consider: 1. What is your finance systems strategy? 2. Is this system right for me? 3. When should I adopt? 4. How do I implement?
  • 9. Private company finance teams produce volumes of static spreadsheet reports as different users want information about different aspects of the business. It takes a significant amount of manual effort to adapt/revise each report to meet users’ needs. 2 Providing better operational insights into the business
  • 10. 2 Providing better operational insights into the business Data visualization tools can be used to bridge the translation gap between finance and the business owner and other leaders and allow for business conversations. These tools enable finance teams to reposition and repurpose the data they collect to present it in a way that is more meaningful and clearly present the business’s performance drivers in a user friendly, more meaningful manner.
  • 11. Many finance leaders have a hard time: 1. Developing and retaining their current team members 2. Finding the right people, at the right price, to fill gaps 3 Building a stronger, more client-focused finance team
  • 12. Tactics to build a strong team include: 1. Better performance management processes— including clear performance goals that team members are also evaluated against and stretch targets for each level/role 2. An increased focus on talent development and continuous learning—including a formal learning and growth plan for each level/role 3. Clear succession planning 3 Building a stronger, more client-focused finance team
  • 13. As the business grows Canadian private companies tend to grow rapidly in their first five years of operation, after which they often lose momentum. However, many private companies create a new growth cycle through a disruptive event.
  • 14. An unexpected change in market conditions Every private company will face a major disruptive event at some point in time A major acquisition or divestiture opportunity Transition to a public company The need for new financing through private equity Transition of ownership
  • 15. Finance can’t afford to wait to consider how to deal with disruptive events When private companies encounter disruptive events, the finance team’s capabilities will often determine its success in managing those events. If unprepared, finance can become a bottleneck to the business, limiting, and potentially degrading, its ability to capitalize on the event, potentially resulting in a devaluation of enterprise value.
  • 16. Finance can’t afford to wait to consider how to deal with disruptive events These events can arise suddenly, and companies often have a limited amount of time to take advantage of them. 87% of finance teams already struggle to keep up with their current workload. Dealing with disruptive events has the potential to significantly increase the demands on finance.
  • 17. Finance can’t afford to wait to consider how to deal with disruptive events Companies need to determine— well in advance—what they need to do to become “event ready” and then take the steps to build the required capabilities.
  • 18. Finance has a key role to play in successfully managing disruptive events Disruptive events put pressure on companies and their finance teams, quickly revealing any weaknesses in people and processes—particularly with respect to the allocation of time and effort required to deal with these new demands. To be prepared, finance leaders need to perform an impact analysis and readiness assessment well before a disruptive event arises.
  • 19. Readiness assessment and impact analysis The readiness assessment should include the likelihood of the scenario occurring and an assessment of the time, effort and financial investment required to deal with the new demands that will impact the financial processes, technology and talent. The CFO/finance leader will then need to determine where the gaps exist and which can be improved upon now. The path between the concept and reality of the event is always shorter than expected. It is always better to perform the impact assessment and perform the tactical elements required to move the finance team into a better state to be able to deal with an event in advance.
  • 20. But how many finance teams are actually preparing themselves? Unfortunately, many companies believe they can wait until a disruptive event is on the horizon before investing to build their finance team’s capabilities—and building those capabilities almost always takes longer than expected.
  • 21. Having a plan to modernize the finance function is important under normal growth cycles. But when disruption occurs, a mature finance team isn’t just important—it’s critical.
  • 22. Read the full report Finance trends Modernizing finance in private companies www.deloitte.ca/financetrends www.deloitte.ca © Deloitte LLP and affiliated entities. Designed and produced by the Deloitte Design Studio, Canada. 16-4176T Contact Michael Goodfellow Partner, Audit Advisory +1 (416) 643 8027 mgoodfellow@deloitte.ca Bruce Chin Partner, Audit Advisory +1 (416) 643 8949 brchin@deloitte.ca Mike Runia Partner, Deloitte Private +1 (613) 751 6693 mrunia@deloitte.ca Mark Wayland Partner, Deloitte Private +1 (416) 601 6074 mawayland@deloitte.ca Hitesh Peshavaria Partner, Audit Advisory +1 (416) 874 4446 hpeshavaria@deloitte.ca Brandon Weekes Partner, Audit Advisory +1 (416) 775 7203 bweekes@deloitte.ca France Boudreau Partner, Audit Advisory +1 (514) 393 5170 fboudreau@deloitte.ca Kari Lockhart Partner, Audit Advisory +1 (604) 640 4910 klockhart@deloitte.ca