How to evaluate the performance of financial department?

How to evaluate the performance of financial department? This has undoubtedly become an important issue to test the level of enterprise management. From the boss to the shareholders and executives, there are a thousand perspectives and standards in the eyes of a thousand people. How to be objective, scientific and fair? Of course, at present, the criteria for evaluating the performance of the financial department of an enterprise can be roughly divided into three categories: ① the traditional type, the financial department only needs to make the accounts right, which is good; ② the omnipotent type, all business activities are related to money, which is what the financial department should do. ③ Objective, understand the business, analyze the future development strategy of the enterprise, and reasonably evaluate the role and value of the financial department.

Which evaluation method do you think is more acceptable? Third, of course! When we try to evaluate the performance of the financial department of an enterprise, should we first look at ourselves, what is our evaluation system, what are the standards, and what principles are we based on? In this case, we might as well use the wisdom of some experts to find some specific problem-solving skills.

A piece entitled “Dr. Feng Meng, do something or not: the value promotion of the financial department of modern enterprises” talks about the vertical and horizontal dimensions of the value consideration of the financial department.

In the vertical, the basic functions of Finance: account management and money management;
Horizontally, the coordination of financial and non-financial departments and the function of resource integration.

In the final analysis, whether we judge and measure horizontally or vertically, and understand the business, is the basic premise of any form of performance and value evaluation! Only when we have a clear understanding of the basic functions of Finance and the value needs of enterprises, can we find the best way to evaluate the performance of financial departments. For example, what are the general indicators of evaluation? For specific indicators under the particularity, what are the periodic indicators? With these clear and clear standards, we are qualified to objectively evaluate the performance of the financial department of the enterprise.

Nowadays, with the trend of digital management and the financial transformation of business financial integration, the performance evaluation of the financial department has become more complex. In fact, there are many evaluation criteria for the performance of the financial department of an enterprise, such as the ability of capital operation, financial management, risk management, strategic implementation and shaping a good financial image. Key words of evaluation system: participation in management, strategic thinking, systematic thinking, risk prevention and control, value output, etc Performance indicators of business departments.

It’s not too complex to evaluate the performance of an enterprise’s financial department in the digital era. When we use digital management to integrate financial process and business process, and use analysis to integrate them automatically and in real time, and then transform them into the whole enterprise’s forward-looking business insight in the field, maybe everything will become simple. Taking the financial management software in SAP ERP as an example, we can help enterprises to build a scientific and complete evaluation system of financial departments through innovative solutions. In order to evaluate and assess the financial department, and at the same time drive them to accelerate their growth to adapt to the changing business model of the modern digital world, so that enterprises have more competitive advantages in the rapidly changing world.

For more details on the performance evaluation of the corporate finance department, please consult acloudear (a platinum partner focusing on SAP cloud solutions).

This article "How to evaluate the performance of financial department?" by AcloudEAR. We focus on business applications such as cloud ERP.

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