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| Capitalstars Investment Advisor |
We all make mistakes. But the expectation is that we learn from our mistakes and try to avoid repeating them. Of course, that’s not always the reality. So when mistakes tend to pop up, again and again, it might be time to seek out some help.
For those of us in finance, mistakes can result in reactions that span the spectrum of “oops” to “we’re done for.” Even oops-level mistakes can multiply into career-limiting catastrophes. Just consider how a small spreadsheet calculation error could over- or under-inflated sales or profits or costs. It could force companies to change direction, cancel projects, or spend money it doesn’t have. If those mistakes make it into regulatory or other critical reports, it could lead to financial, reputational, or legal repercussions that resonate for years.
So let’s look at the top five career-limiting mistakes in finance and potential solutions to keep you from ever worrying about them again.
Using the wrong numbers in financial calculations and reports
The root cause of the wrong number issue is human error. If you’re entering data, there’s the risk of a typo. If you’re exporting and importing data, there’s the risk of an incorrect sort, an errant header, incorrect formatting, and more. If you’re copying-and-pasting data, there’s a chance of missing parts of a column or row or pasting it a cell or two off.
Yet another missed deadline
We’re all busy. But missing deadlines again and again, especially for deadline-driven reports and compliance documents, can separate you from your next promotion. The best protection against missed deadlines is a robust and reliable process management tool, with task management, workflow, visibility and communication for all collaborators, and alerts and reminders to keep everyone aligned, on track and on time. Email follow-ups and spreadsheet checklists just don’t cut it anymore.
A constant refrain of “I don’t know”
Finance is looked to as the single source of financial truth in an organization. Your answers not only need to be accurate, they need to be fast. But if you’re more often responding to requests with a lack of answers, the business might start to question your strategic value. At worst, they stop asking questions altogether.
Taking 20 days to close the books
Financial consolidation shouldn’t be a never-ending cycle of closing. In other words, it shouldn’t take as long to close the books as the period itself. If your close process is taking too long and too much effort, the business will start to wonder why you haven’t taken steps to make it better. Another strategic opportunity missed and another anchor on your finance career.
Not sticking your landing on the aircraft carrier
Managing a budget is a big responsibility. The leaders of the business have entrusted you with the company’s capital, and they’re expecting you to successfully and responsibly use it to execute the company’s strategy. But managing that budget can be tricky business – overspend and you’re in hot water with your bosses, underspend and you’re likely losing that money in next year’s plan. It’s a bit like landing a fighter jet on an aircraft carrier – you have to stick the landing. Miss that landing by too big a margin too many times, and your job might not be so secure.
As we mentioned in the beginning, we all make mistakes. If those mistakes are noticed and yet still reoccur, it can become an even bigger problem. Recognizing mistakes but doing little to eliminate them means the only one to blame is yourself.
These top five mistakes above are all very common yet very avoidable. The technology exists to automatically gather data, enforce and track processes, and eliminate tedious manual work. And, it’s less expensive and easier, faster, and less disruptive to deploy than you probably imagine.