Business partnering has existed in one form or another for decades but in recent years the business world has seen a growing demand for effective finance business partners with organisations of all sizes. As the business environment becomes more complex, the finance department is having to adapt.
Companies recognise that to be more responsive – continually re-evaluating both short and long-term goals and strategies – finance and accounting professionals must take a business advisory role in an organisation by taking on a value-added, ‘business partnering’ role, to help other parts of the business improve their analysis and decision-making.
If you are an accounting or finance professional who is eager to expand your role within the business, a management accountant ready to leverage your financial skills for a more strategic role, a finance manager seeking to bridge the gap between finance and business units or even a fresh graduate eager to kickstart a dynamic career in finance, this blog is for you.
The finance business partner role might be the perfect fit for you. This blog is a comprehensive guide to understanding this multifaceted role, exploring its benefits, and mastering the skills needed to thrive. Not matter if you're already familiar with financial analysis or just starting out, we've got you covered with valuable insights and practical advice to set you on the path to success as a finance business partner.
Business departments are eager for the support of finance professionals who understand the objectives of the business and can analyse real-time information to support their decision-making. Businesses need a culture of governance, accountability and scrutiny, where strategic and tactical decisions alike are based on data and projected figures.
Finance business partnering involves finance executives working alongside different business departments, providing financial information, tools, analysis and insight to executives, challenging their thinking, helping them make more informed decisions and driving business strategy.
A finance business partner breaks down the barrier between accountancy and management to support business objectives and corporate growth. They act as an advisor to leadership, supporting business decision making through a combination of analytical insights, strategic acumen, and commercial-mindedness.
Day to day tasks of a finance business partner include:
Developing and managing budgets, preparing financial forecasts, and tracking actual performance against target.Building financial models to evaluate different scenarios and support decision-making.Analysing deviations from budgets and forecasts to identify root causes and recommend corrective actions.Preparing regular financial reports for management and stakeholders, highlighting key trends and insights.Collaborating with business unit leaders to develop and implement strategic initiatives.Providing financial analysis and insights to support decision-making on projects, investments, and operational issues.Working with managers to identify and track KPIs, and develop action plans to improve results.Identifying and assessing financial risks, and developing mitigation strategies.
Overall, the role of a finance business partner is to be a trusted advisor who provides financial expertise and strategic guidance to help their business partners achieve their goals.
Will Cannaby, Director at Robert Half and specialised finance and accounting recruiter says "A great finance business partner can provide valuable support and guidance with budgeting, forecasting, and they offer financial insight and strategy. This can help a company achieve its financial goals and succeed in today's competitive market. Finance business partners improve decision-making with a strong understanding of the financial health of a company, helping management make better decisions about investments, resource allocation, and other key initiatives."
Related: Need help updating your resume? Download our free financial resume template here.
Overall, finance is not just checking the data and the formulas, but understanding and checking the hypotheses behind management’s views, and ensuring the goals being pursued are aligned with the company strategy.
Faced with a complex and volatile environment, companies need to develop a clearer understanding of the drivers of business performance and the effect of new initiatives on the development of the company. Finance business partnering can help to achieve this.
The process is agile and open to interpretation depending on the company or department, as well as its objectives. It might be a short, mid or long-term relationship, a permanent one, or when a decision needs to be made.
Examples of how these business partnering relationships operate:
The finance business partner might work with business unit heads to help clarify how particular key performance indicators (KPIs) are calculated, or how exchange rates are managed.The finance business partner can work with HR to help calculate compensation packages across the business – using comparable data, and correcting for inflation. They might review forecasts to ensure these are realistic and that no big risk factors have been overlooked.The finance business partner may explain to a sales team the financial impact of certain guarantees included in a sales promotion.The finance business partner might work with the R&D department, ensuring that competing research projects are evaluated consistently, or by setting the criteria, such as short-term returns, level of risk, or strategic interest, in order for such judgements to be made.
While technical finance skills used to be perceived as the only requirement to perform a finance and accounting job, soft skills have become a must-have for finance business partners.
As business partners, finance professionals now need a commercial appreciation of the business, as well as leadership, team-building, interpersonal, and project management skills.
But this is hard to find. According to research conducted by Robert Half among 100 CFOs in 2023, 75% said they are missing finance business partnering skills in their operative workforce and executive leadership.
With Will's 12 years of recruitment experience, here is his list of must-have skills for a finance business partner:
Macro and micro economic perspectives to allow a holistic view before deciding a strategy, for example how interest rates might change a decision.Attention to detailCapacity to transform extensive data into a narrative, usually via a Business Intelligence toolEffective dissemination of financial information to identify and communicate areas for improvement and develop strategies for growth and profitability.
Related: Ready to develop your soft skills? Here are the soft skills CFOs are looking for.
Those working in a business partnership role need to have the right blend of both data and communication skills, so that the relationship works fluidly. Building interpersonal skills alongside a thorough understanding of the overall vision and mission of the business are possibly the biggest advantages a business partner can possess.
A business partnership is a dual role, which can provide a pragmatic financial overview balanced against the management and operational needs of a business unit.
Key communication skills together with a clear understanding of both budgets and KPI are prime skills.
If you are on the fence about becoming a finance business partner, there are a multitude of reasons why it is a role worth striving for in your finance career development.
From an earning potential perspective, a finance business partner salary is usually higher than traditional accounting or finance roles due to the strategic value and business acumen the role provides.
To find the up-to-date salary range, visit the Robert Half Salary Guide.
The skills and experience development that come with being a FBP is extensive. In the role, you gain exposure to high-level decision-making and develop a deeper understanding of business strategy. Interacting with various stakeholders enhances communication, negotiation and influencing skills while tackling complex business challenges sharpens your analytical and problem-solving skills. As a result, the role is also a solid stepping stone to senior management positions such as Finance Director or CFO.
From a personal standpoint, finance business partners often feel a sense of purpose and fulfillment in their role as a result of their impact on directly shaping business outcomes. The role offers continuous learning and growth opportunities and opens doors to expanding your professional network which is valuable for future opportunities.
Finance business partnering, like all finance roles, can come up against challenges that often stem from the complex nature of balancing financial expertise with strategic business acumen.
Challenges include:
Building credibility and trust with non-finance colleagues.Balancing strategic and operational demands, including providing analysis and advice for long-term planning while also handling day to day tasks like budgeting, forecasting and reporting.Ensuring access to accurate and timely data for decision-making. This can stem from outdated systems or a lack of filing and organisation.Effectively communicating financial information to non-finance stakeholders.
A successful business partner will be able to show that he or she can analyse data; can understand what both sides of a given partnership require; can identify strengths and weaknesses across a business unit or entire company; and set company and individual goals.
What are the typical day-to-day responsibilities of a Finance Business Partner?
Developing and managing budgets, preparing financial forecasts, and tracking actual performance against target.
Building financial models to evaluate different scenarios and support decision-making.
Analysing deviations from budgets and forecasts to identify root causes and recommend corrective actions.
Preparing regular financial reports for management and stakeholders, highlighting key trends and insights.
Collaborating with business unit leaders to develop and implement strategic initiatives.
Providing financial analysis and insights to support decision-making on projects, investments, and operational issues.
Working with managers to identify and track KPIs, and develop action plans to improve results.
Identifying and assessing financial risks, and developing mitigation strategies.
What kind of projects would I be involved in as a Finance Business Partner?
You'll be a key player in projects that directly impact the financial health and growth of the business. For example, in strategic initiatives like launching new products or entering new markets, where you'll analyse financial viability and risks. You'll also tackle operational projects like optimising costs, improving pricing strategies, or evaluating investment opportunities. Your role will often involve analysing financial data, creating forecasts, and presenting insights to senior management to guide decision-making.
What are the biggest challenges faced by Finance Business Partners?
Building trust with stakeholders
Balancing short-term operational demands and long-term strategic demands
Communication and influence
Keeping up with change in the finance world and in the business you work for
How do Finance Business Partners navigate working across different departments?
Finance Business Partners collaborate effectively across departments by building strong relationships, translating financial jargon, understanding each department's unique needs, adapting communication styles, actively listening, leveraging data-driven insights, resolving conflicts, and continuously learning.
What are the common roadblocks to successful business partnering?
Lack of credibility and trust
Limited business acumen
Poor communication
Resistance to change
Inadequate resources or support
Misaligned goals
Overemphasis on financial metrics
Does becoming a Finance Business Partner position me well for senior leadership roles?
Yes. The skills and experience development that come with being a finance business partner is extensive. In the role, you gain exposure to high-level decision-making and develop a deeper understanding of business strategy. Interacting with various stakeholders enhances communication, negotiation and influencing skills while tackling complex business challenges sharpens your analytical and problem-solving skills. As a result, the role is also a solid stepping stone to senior management positions such as Finance Director or CFO.
