Page 65 - E1 Integrated Workbook STUDENT 2018

Thhe contemmporary transforrmation oof the finnance funnction

Chaangess in thee finannce fuunctionn

1.1 Inntroductioon

Thhe continuous and evver increassing pace oof change in the business
ennvironmentt has resullted in signnificant chaanges to thhe finance
function.

1 Focus hhas changed from finnancial conntrol to bussiness suppport.

New role called a hybrid acccountantt since the accountannt has a vaaluable
combinnation of acccounting aand operattional/ commmercial knnowledge.

Often fuully integrrated into a departmment rather than sittinng in a sepparate
accounnting functioon and plaay a key role in the opperation annd decisionn

makingg process oof that depaartment.
However, it is impportant thaat the finance functionn remains independeent and dooes not
lose sigght of its roole in governance and in proteccting shareeholders’ and the pubblic
interestt.

1.2 Driving forcces for chhanges

1. Mannagement structure 2. Technology 3. Comppetition

Head office has Neww technologgy has Acccountants need to
delegaated much allowwed users across thee takke a strategic, long-
responnsibility meeaning orgaanisation too input dataa terrm focus inn order to
that acccountantss now and produce reeports asssist the orgganisation

provide the link bbetween prevviously onlyy producedd in remaining
the opperational rreports, by aaccountants. co ompetitive.
the financial
consequences aand the
strateggic outcommes
desireed by the board.

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