How the finance team becomes a growth engine

Turning the company's finance department into a proactive force for growth requires a combination of strategic thinking and effective tools. This topic was discussed by a panel of experts, led by Eleonor Dahlberg from Svensk handel, at Juni's recent Kitchen Commerce event. The panel consisted of Hendrik Bitterschulte, CFO at Acne Studios, Albin Johansson, CEO and co-founder at Axel Arigato, Anna Wretlind, Partner Manager at Fortnox, and Juni's CFO, Ruben Arnbert.

1. Integrate finance with core operations and understand the bigger picture

A recurring and key insight from the panel was the importance of integrating the finance department with the company's core operations. For the finance team to contribute to growth, it's crucial to move beyond traditional accounting and budgeting and gain a solid understanding of the factors that drive the business. Truly understanding the company's market, customers, products, and operational processes is essential for making strategic decisions that benefit the company's growth.

"You need to fully understand the company's business, how things are going, and be able to discuss things at a high level to support from a finance function. In the finance team we can't just handle the figures and set rules. That's not what's needed any more. What's needed is to consult the company, to support the other functions, and to have a global perspective on the business," says Hendrik Bitterschulte, and Albin Johansson agrees:

"You need to have a holistic view of what's going on. We can no longer work in silos within the company. If you have an organisation that works in silos and doesn't have the right communication with each other, and you don't know exactly what's going on, you can't prevent things from your end if something were to happen."

2. Shift mentality, from control to enabler

Further to the previous point, it was discussed that a shift in mentality is needed within the finance team. Instead of primarily focusing on control and cost savings, the finance department needs to adopt a more proactive and enabling role to facilitate the company's strategic initiatives and growth ambitions. This means actively seeking financially sustainable solutions and challenging traditional ways of thinking.

"The finance team should be a business enabler. It's not about thinking we can't do this or that. It's more about how do we make this work?" says Albin.

"Again, it's important to want to be part of the company and think more solution-oriented. At my level (as CFO), that's absolutely what's needed, what's expected, and what I also get a lot of energy from. I mean, if you know your business and can have high-level discussions with a CCO, you'll realise it's very enriching," says Hendrik.

3. Automate and streamline to free up time for strategy

For the finance team to focus on strategic work and contribute to growth, it's crucial to free up time from repetitive and time-consuming tasks. Automation of manual processes was identified as a key factor in achieving this. By eliminating manual workflows, the finance team can focus on more value-adding activities. Therefore, choosing the right financial tools becomes fundamental to building an efficient and, moreover, scalable finance department that can support the company's growth journey in the long term. Investing early in systems that can integrate and grow with the organisation is therefore of great importance.

"The simple answer is to choose the right systems that already integrate with each other and have automated workflows. For example if we take the process of paying an invoice, which takes a lot of time, and then the accounting afterwards. It becomes important to have a system that automates categorisations and transactions, so you don't have to spend time on manual tasks and the actual accounting," says Anna Wretlind.

"If you look at traditional banks, there's what I call an infrastructure layer. It breaks up the flow you're working in. So instead of having one tool for the entire flow that automates the whole process, it's broken up by the old banks. That's what makes Juni very powerful, but also Fortnox. The fact that you can integrate the flow into one, and save a lot of time. And stop spending time on administration or manual work and focus on what's important instead," adds Ruben Arnbert.

4. Create budgets and plan for different scenarios

For the finance department to contribute to the company's long-term stability and growth, it's crucial to establish detailed budgets and actively manage liquidity. By creating different scenarios in the budgeting process, the company can prepare for potential economic fluctuations and unexpected events. Ensuring a sufficient cash flow provides the freedom and security to navigate uncertain times and invest strategically when opportunities arise.

"You always need to be prepared. We live in uncertain times. So you need to prepare based on different scenarios and always be ready for anything that might happen – for the unknown.. It's an ongoing job all the time," says Hendrik, and Albin adds:

"We've had several different budget plans in just the last few years because you don't know what you need to be prepared for, but you need to prepare for the worst all the time. You should also always make sure you have your destiny in your own hands, and you can only have that if you have enough cash in the bank, and you need to make sure you have enough cash in any possible scenario. You need to be able to adjust and be flexible."

Hendrik describes how they constantly conduct new analyses and forecasts to ensure good cash flow going forward.

"We do rolling forecasts every month to try and see and adjust for the rest of the year. I think it's even more important nowadays to be cash rich and have a consistent and good cash flow. Because then you can survive a year where you don't meet your budget and when sales aren't as expected. But as long as you can generate a positive cash flow, you're relatively safe. It's of course easier said than done, but definitely something we keep very much in mind when we are forecasting and look ahead," says Hendrik.

5. Think Strategically About Funding

Finally, the importance of adopting a strategic approach to funding was discussed. Instead of viewing funding solely as a reactive measure in the event of a liquidity shortage, companies should actively evaluate and use different funding opportunities to facilitate cash flow, invest in growth, and create additional value.

"Don't underestimate funding and taking out loans. In my experience, there's sometimes scepticism around taking out loans specifically. When you talk to a bank about getting a loan, it's often an overwhelming process too. But today, there are other players who are faster and more efficient. External funding can become incredibly valuable if, for example, you can bridge the periods when you have tight cash flow because you have a lot of stock that you expect to sell. It can create enormous value in the business. I don't think it's ever too early to start thinking about a funding solution," says Ruben.

Shape the finance team into a central driving force for growth with the support from Juni

In conclusion, it's clear that a forward-thinking and proactive finance department is important for a company's growth. With strategic thinking and effective tools, companies can navigate a complex market and achieve their goals. For the finance function to become a growth engine, business acumen, the use of technology, and innovative roles are required. At Juni, we help you transform your finance team into a strategic asset through financial products and insights that optimise cash flow and free up resources. Contact us to discuss how we can support your growth journey and make your finance team a central driving force for success.