I was speaking to a founder earlier this year - who was complaining about their prior Chief Financial Officer who was asked to leave the business. Yikes.
This CFO wasn't asked to leave the business because they weren't good at strategy but rather because every time they delivered the monthly management accounts the leadership team found mistakes and no-one trusted the numbers.
Therefore, no one trusted any analysis that is based off this data.
In the fast-paced world of start-ups & scale-ups, management accounts might not always seem like the most glamorous task on your to-do list. Yet, it's precisely this underappreciated tool that can catapult your career forward, distinguishing you as a future Chief Financial Officer with a keen eye for both financial management and accounting nuances.
It can also kill your career if you don't give it the dedication and focus that it requires....
Gaining Trust Across the Business
Trust is the currency of leadership and career progression in finance.
Producing management accounts isn't just about numbers; it's about crafting a narrative that resonates with the leadership team, board members, and investors alike.
These documents provide a regular, insightful snapshot of the company's financial health, directly influencing strategic decisions.
When you elevate the quality and insightfulness of these reports, you signal your understanding of the broader business context and your capacity to think strategically.
Developing Your Personal Brand
Your management accounts are more than just reports; they are your personal brand within the corporate ecosystem.
Every line item, analysis, and commentary you add contributes to your image as a detail-oriented, insightful finance professional.
This consistent exposure to your work helps you build a reputation as someone who not only masters the differences between financial management and financial accounting but also adds value beyond the numbers.
Building Relationships with Key Stakeholders
The frequency and visibility of management accounts offer a unique opportunity to engage with the company's decision-makers.
Use these interactions to demonstrate your leadership skills and forward-thinking approach.
By providing actionable insights, you can become an indispensable advisor to the C-suite and board, ensuring that your voice is not just heard but sought after for major strategic decisions.
The Easiest Task to Get Noticed
Focusing on the narrative and strategic insights of your management accounts can be the easiest and most effective way to get noticed.
- highlight trends,
- identify potential financial risks, and
- suggest actionable steps the company can take
Tailor your reports to address the specific interests and concerns of your audience, such as
- growth opportunities,
- cost management strategies, and
- investment returns, be it big picture or specific projects
This targeted approach shows that you're not just reporting the numbers—you're interpreting them in ways that drive the business forward.
Taking Action
If your management accounts are currently more about compliance (are the number right?!), hitting deadlines (I must get the Management accounts out by Business Day 5!) than strategic insight, it's time for a change.
Consider enrolling in specialised courses like "Upgrade Your Management Accounts" or "Financial Leadership Fundamentals for New or Aspiring CFOs". These programs can help you refine your approach, ensuring your reports not only meet but exceed the expectations of your stakeholders.
The management accounts are a powerful tool in your finance career arsenal. By leveraging them to gain trust, develop your personal brand, and build relationships with key stakeholders, you position yourself as a strategic partner in your organisation's success.
Remember, becoming a CFO starts with recognising and seizing these opportunities to demonstrate your value and leadership potential.
