The objective of this study was to determine the extent to which the finance function has evolved from being mere transactional – into one being more value-adding and business-partnering. The main focus of this study is on the role of finance as a business partner. Its main function is to add value to the business and the operations, and to offer the required support, in order for management to be able to make the right decisions. In this role, finance is regarded as part of the management team – and not just an external support function providing number ‘crunching’ – but a member that provides valuable input in the processes that the business follows. They become an in-house consultant for the business, thereby providing technical knowledge, which is aligned to the manner in which the business conducts its operations. The activities that are to be done by finance in this role comprise the following: Alignment of the functions of finance with those of the business, and what is thereby required; Providing information to the business on a timely basis; Providing information that assists and is relevant in the decision-making process of the business; Having a balance between providing governance support, as well as ensuring adequate control of the assets of the organisation. Reducing non-value adding activities that can be outsourced, such as standard reports, which can be developed and housed within a linked IT system. In order to be able to perform these activities effectively, there needs to be adequate support from the organisation’s IT environment, where standard templates can be developed, which are linked, and which lead to the availability of time for the analysis of the data. The resources also needs to have the required soft skills – of which communication and the ability to influence are important aspect – as there would be times when the people in operations would need to align their business decisions to the right finance decision – without becoming an obstruction to the business. A survey was carried out involving the accountants, whose role was to support the business in the South African environment, and which provided information on the following research questions: (i) Are finance professionals moving towards becoming business partners and away from transactional back-office work? (ii) What are the main reasons for the lack of transformation of the finance function? (iii) Is the size of the organisation a factor in its transformation? (iv) Does the fact that a company is a multinational or a South African organisation have any impact on the transition? The results of the survey were used to draw a conclusion on the extent of the change in the role of finance. The research concluded that there had been some change in the role that finance was performing in regard to the business. However, there were still areas where more could be done to move the change along, and to arrive at a position where finance becomes a full business partner.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8925 |
| Date | January 2014 |
| Creators | Sonjica, Siphokazi Nondumiso |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | x, 85 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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