There are three questions that a finance executive should always be able to answer when they sit down with a business leader:
1. The first question is, what happened? We’re pretty good at that in finance. We can calculate the actuals and say, “Sales are off 15%.”
2. The second question that always follows right on the heels of the first is: Why did that happen? We’re not always so good at that one. We might have to go and do some more analysis to analyze the variance.
3. And then the third question is, what should we do about it?
To me the definition of finance truly being a business partner and helping the business is being able to go into the discussion ready to answer those three questions.
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