Analyze Business Processes, then Optimize

Abstract

Finance must analyze business processes that cut across business functions:

• 1. Process mistakes in other business functions create problems in accounting, which is downstream in most business processes. For example if material is not issued to a closed work order, then work in process inventory will be overstated. Identification and correction of errors like this consume valuable time in accounting during a month end closing.

• 2. Dysfunctional processes undermine competitiveness and put the enterprise at risk.

• 3. The foundation of planning is information derived from processes involving all functions in an enterprise.