Page 28 - The Pakistan Accountant January-March 2018_Neat

Signature Qualification CA that Empowers to Lead PAKISTAN Business partnering roles sometimes creates a conflict with the fiduciary responsibility which needs to be counter balanced by a strong controlling function. “Finance function’s fiduciary responsibility as an upholder of governance, compliance and transparency, poses one of the most important challenges in today’s world of business partnering. It is a balancing act which must preoccupy every CFO’s mind. Setting the priorities right and predefining the boundaries can provide a tool to CFOs in ensuring value delivery without compromising on its fiduciary responsibility.” ̶ Syed Ehtesham Ahmed, general manager Finance Pakistan Petroleum Limited Regardless of industry, both divisions are vital to any organisation as long as the functionalities remain separate and independent from one another. While controllers focus on correct reflection of the past and smooth operation of the present, partners focus on learnings from the past, and deriving the future strategy. Fruits of having a dedicated business partnering function are often lost when they are also actively engaged in operational controlling task. Which division is likely to lead? There is no ‘leading’ division in finance, as this is not predefined and it rather depends on the organisation’s circumstances as well as the quality and abilities of individuals. Business partners, however, may have better chances of becoming head of the finance as compared to the business controllers due to the former’s strategic nature and proximity to business. “People skills and commercial acumen of individuals matched with impacts on organisation as a whole and results in financial terms provide opportunity both to Control and Planning to take the CFO position. Both ticks are required for the top slot. I have seen In future, we could see rise of specialised firms in the country both positions taking the top slots depending on their which can handle all sub-divisions of controlling thereby allowing influence on the organisation and the era requirement, more accuracy of information, specialised governance and mandated by businesses priorities.” economies. ̶ Syed Farhan Ali Rizvi, director Corporate Finance Many multinational organisations operating in Pakistan have National Foods Limited either outsourced many of their controlling sub-divisions or are in a process of doing so. This phenomenon can also work best with Each sub-division of the business controlling section is frequently local group of companies. outsourced. In Pakistan, tax outsourcing is very common to professional firms. Lately, there has been a rise in outsourcing of With the increase in commercialisation, the concept of business services and ledger function as well. The concept is to eliminate partnering is on the rise where business partners are considered or automate non-core activities and focus on core activities. In co-pilots to business as they set the strategic direction of this way, a lean and agile controlling division can be formed the company, identify areas of risk and opportunities and which focuses on value creation while balancing the fiduciary ensure results. They also act as a change catalyst for the entire responsibilities. organisation. “The advantages and risks of outsourcing need to be With all said, creating a balance between business partnering and carefully considered. In my experience, shared services fiduciary responsibilities is essential for any organisation that will have resulted in reduced costs, standardisation, and real allow finance to emerge more than as a mere support function improvements in business processes, which enable greater and become true strategic partners to CEOs. focus on strategy and driving sustainable business value.” ̶ Dr. Murtaza Abbas Mooman, chief financial officer ThalNova Power Thar (Private) Limited The writer is a chartered accountant working as an executive at A. F. Ferguson & Co., Karachi. 26 The Pakistan Accountant January - March 2018