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At Aedon.Accounting, we believe that the finance department of a business can be transformed into a well-oiled, cost-effective machine through process engineering. While many companies have reengineered their supply chains and manufacturing processes, the finance function often remains untouched. We think it’s high time to change that.

As Paul Foden, our CEO, puts it, “Finance is a factory.” He suggests treating the finance function as an administrative factory that can be process engineered. “What financial directors should do is treat their accounts and processes as products which go through a manufacturing process. They should measure them in the same way that you measure the manufacturing process: input costs, output costs, failures when you make a mistake. The kind of metrics that you could apply when making widgets, for example, you could equally apply to the finance function.”

This perspective highlights an often-overlooked opportunity: cost engineering the finance function just like any other part of the business. Despite having some of the best-paid employees, the finance department is rarely optimised for cost efficiency. By applying metrics and measurements akin to those used in manufacturing, businesses can uncover significant savings and enhance operational efficiency.

Accenture’s concept of a “reinvented” business aligns closely with our approach. We believe in reimagining the finance department’s role, not just as a cost centre but as a critical driver of business efficiency and value. This involves analysing every process, identifying bottlenecks, and implementing best practices to streamline operations.

Incorporating technology and automation can further enhance these efforts. Tools like our bottom-up reporting dashboards provide granular insights into financial performance, enabling finance teams to identify inefficiencies and make informed decisions swiftly.

By treating your finance function as a factory and applying rigorous process engineering principles, you can transform it into a cost-effective powerhouse. It’s time to reengineer your finance department and unlock its full potential.

Get in touch with Aedon.Accounting today to learn how you can become a proactive finance director and drive efficiency in your finance department.