Interview Prep Flashcards
(122 cards)
1
Q
Five key objectives of a FD
A
Meets its strategic goals, Maintains its financial health, Identify future financial problems, Identify financial opportunities, Scalable and Integrated Systems and Processes.
2
Q
Understand the Business..
A
Understand the people, Evaluate systems, process and controls, Understand risk in the business, Understand the individual commercial needs of the business.
3
Q
Problem-solve..
A
Attention to detail, Communicate
4
Q
Question…
A
Question, Learn, Change. Ask why, not what. Learn from both our mistakes and successes.
5
Q
Act rather..
A
Act rather than react, Make that call, Drive forward confident in expectation.
6
Q
Key functions at core?
A
Budgeting, Performance, Reporting, Cash Flow, Forecasting plus SA, Working capital, Publication of accounts, Project appraisal, Statement analysis.
7
Q
Blue on matrix?
A
(1) Translate objectives into viable financial plans.
(2) Useful resource, not a police force.
8
Q
Green (2) on matrix (+7)?
A
**(1) Strategic objectives and Operational management.
(2) Plan, Record and Control an organisation’s activities.
(1) Identify objectives
(2) Identify potential strategies
(3) Evaluate strategies
(4) Choose alternative courses of action
(5) Implement the long-term plan
(6) Measure actual results and compare with plan
(7) Respond to divergences from plan
9
Q
Circle on matrix?
A
(1) Good corporate governance (2) Risk register (Strategic and Operational (3) ICT and Information governance (4) Commercial minded. (5) Regulatory and governmental compliance + Company Administration (6) Business Intelligence (Fin and non-fin info..) + Businesses are partnerships + Internal / External interface (7) Internal / External audit + Process and policy adherence + Control-conscious environment.
10
Q
6 Takeaways from Online, 5 Events (Online) and 4 Events (IK-UK)
A
(1) Forward-thinking financial leadership. (2) Informed participation in strategic decision making. (3) Line report/Finance professionals x 6. (4) ERP projects x 2. (5) EY formation. (6) RGU collaboration.
Due diligence, SPA, ERP x 2, Covid, Move, Investigation, Disciplinary, Wind-down, Delipidations.
11
Q
Three types of strategy in existence?
A
(1) Growth strategies. (2) Stability strategies. (3) Retrenchment strategies.
12
Q
Challenges at ASF?
A
Clean up crew, Punting issues, Crisis management, Unpleasant surprises and Meeting reporting needs but not user needs.
13
Q
Proven bad strategies?
A
Hit another home run, Follow the leader, Arms race, Do everything, Losing hand.
14
Q
Optimum approach to strategies?
A
(1) You cannot implement what you do not know. (2) A flexible approach that adapts to the unexpected (3) Difference between operational and strategic thinking and people (4) Keep strategy on track, keep it adaptable and if it fails move from it sooner rather than later and develop another.
15
Q
4 headings in prism of finance department??
A
(1) Perception. (2) Metrics. (3) Info orientation. (4) Processes.
16
Q
Perception?
A
Cost centre. Profit manager, Value creation centre.
17
Q
Metrics?
A
Financial, Financial and nonfinancial, Real-time and predicting.
18
Q
Info orientation?
A
Past - Past, Reactive present, Stable future - Past, Proactive present, Potential future.
19
Q
Processes?
A
Informal and ad-hoc, Formalised with some integration, Automated with full integration.
20
Q
Daily reporting?
A
Drive the business towards its targets, Flight instrument panel. Position and performance, Remedial - Narrative
21
Q
Monthly reporting - Focus 1?
A
Focus in upon (-), Drive forward (+) - Accurate reliable information, financial and non financial… - Too little vs Too much information - Timely information vs Accurate information - A continually forward-facing organisation is hugely beneficial to (1) The performance of the business and (2) Relationships within the business.
22
Q
Monthly reporting - Focus 2?
A
Working papers are principle link between accounting records and financial statements. - Record, Evidence, Reconcile, Adjust, Working papers - Well ordered documentary regime tracing and explaining any balance - Papers and Timetables, Conventions and Priorities.
23
Q
Annual reporting?
A
Processes, Objectives, Management Accounts to Statutory Accounts, Disclosure and Audit.
24
Q
5 elements of the business?
A
The Business, The Numbers, The Performance, The Processes, The Controls.
25
Return on Investment?
Net profit after tax + Net cash inflow = Return on investment.
26
Elements of reporting pack?
P & Loss, Balance sheet, Sales/Price/Margin, Cost/variance - Ac payable and cash out, Ac Receivable and cash in, Cash flow forecast, Forecast + sensitivity analysis, Budgeting - For Ex, Cap Ex, Project appraisal, Statement analysis - KPI's, Contracts review. Controls review, Other review.
27
Element of analysing processes?
**Cost, Creep, Identify, Flowchart, Buy-in, Challenge, Tools / Metrics / Controls (TMC), Make sure it works, Drive forward.**
28
What is internal control?
**Processes, designed and effected by those charged with governance, where rules/procedures and mechanisms are introduced and implemented within a business to ensure integrity, accountability, compliance, fraud and effectiveness and efficiency of operations.**
29
What are the prevent controls and detect controls?
**Authorisation, Documentation, Reconciliation, Security and Segregation of duties. Prevent 4/5 Detect Reconciliation and Internal and External audit.**
30
What is corporate governance?
A set of relationships between Directors, Shareholders and Stakeholders which provides a structure through which (1) The objectives of the company are set (2) The means of achieving these are set also and (3) the means of monitoring performance to that end are determined.
31
4 items determined from pivot tables / financial analysis?
**Metrics, Trends, Issues, Successes and failures.**
32
9 elements of consideration starting with market?
Market, Price, Agility, Liquidity, Acquisition, Location, Exposure, ERP, Economy.
33
Key principles of acquisition?
Capacity Market vs Risk - Market power, Competitive power, Barriers to market, Supply chain security, Economies of scale (Revenue synergies, Cost synergies, Financial synergies)
34
Success is technology?
**(1) Operating platform (2) Document creation (3) Workflow management (4) Billing system.**
Build from within - Consultant's watch. Your watch.
35
How do you like to be managed?
(1) What do you want? (2) How do you want to get there? (2a) Taken to new places or simply delivered? (3) This sets parameters (4) Autonomy with accountability (5) Underpinned by Communication and Teamwork (6) Recognise wins and shortcomings with equal vigour.
36
Risk management is greater than Liabilities and Investments?
**Strategy, Financial, Legal, Security.**
37
5 stages of dealing with risk?
**Identify risk, Analyse risk, Prioritise risk, Deal with risk [Avoid, Accept, Mitigate or Transfer], Monitor risk.**
38
4 approaches to risk?
Avoid, Accept, Mitigate, Transfer.
The Table of Risk
High risk of occurring / Low cost
High risk of occurring / High cost [Detailed plans]
Low risk of occurring / Low cost
Low risk of occurring / High cost [Outline plans]
39
4 main types of data analysis?
**Descriptive, Diagnostic, Predictive, Prescriptive.**
40
10 categories of data analysis?
Cluster, Cohort, Factor, Regression, Time series, Decision trees, Data mining, Text analysis, Mean analysis, Standard deviation.
41
Cash flow statements / Forecasting tools?
**Time series model, Econometric model (Relationship between economic variables to forecast future developments), Judgemental/Opinion/Subjective, Delphi method.** - Straight line, Moving average, Single linear regression, Multiple linear regression.
42
Optimising profit?
**(1) The real revenue of your business is net margin after all your variable costs. (2) More bad business decisions are made by including fixed costs in an appraisal of product performance than through any other accounting convention. (3) Do not convert a variable cost into a fixed one (make it yourself) unless the fixed cost will still be economical if a 30% fall occurs in the level of demand. (4) Breakeven to actual sales calculation.**
43
Optimising cash?
**(1) Generation of profits (2) Well-organised treasury (3) Minimum working capital (4) Effective use of fixed assets.**
44
Indicators of cash performance?
**(1) Overall bank balance (2) Free cash flow (3) Gearing ratio (4) (Debt ratio (5) Interest cover.) [A] Inventory, [B] Receivables, [C] Payables, [D] Fixed assets, [E] Research & Development, [F] Treasury.**
45
The controls - Fraud?
Use of services and facilities a privilege not a right. Remuneration schemes, make as self-policing as possible. Some MD's fail to understand that you cannot make money by accounting. Double wham if your forecast is based on inflated sales.
46
Optimising performance?
**You must understand the structure and dynamics of the business, You must understand the driving forces inside and outside the business, You must understand people's personal objectives which are all different, Management reports must extend beyond results to causes and effects.
(1) Financial Performance
(2) Competitive Performance
(3) Quality of Service
(4) Flexibility
(5) Use of Resources
(6) Innovation**
47
The effective management of a process or a series of processes entails a cycle?
Define, Action, Measure, Analyse, - Improve & Control or Report & Instruct.
48
Greatest strengths?
**(1) Ability to bring people along with an idea or a project (2) Communicate financial and non-financial information (3) Focus on areas (-) Drive areas forward (+) (4) Clear idea of what I want to achieve at any particular time.**
49
Greatest weaknesses?
People first - Can be perceived as a weakness - Taxation.
50
4 essentials of high-performing teams?
Clarity of Goals, Roles, Processes and Rewards.
51
5 elements of a chaotic finance department?
Clean-up crew. Punting issues. Crisis management. Negative surprises. Meeting regulatory needs but not users.
52
5 failed strategies to beware of?
Hit another home run. Follow the leader. Arms race. Trying to do everything. Losing hand.
53
4 words for FD / Leader?
Strategist, Catalyst, Steward, Operator.
54
First 100 days for finance department?
[X] Work with what you have to begin and then create what could or should be.
**[A] (1) Self (2) Finance team (3) Organisation (4) Marketplace.
[B] (1) Clarity of Roles, Goals, Processes and Rewards.
[C] (1) Understand the Business.(2) Understand the People. (3) Evaluate Processes and Controls. (4) Understand unique commercial requirements of the business.
[D] (1) Take inventory of what you are good at extend out from your skills. (2) Determine what your organisation (REALLY) need and work backwards, even if that means learning new skills.
[E] More cohesion is required rather than more hierarchy. (2) What is required is a network of leaders. (3) Leaders do not need positional power to influence others.**
Long-term to finish - Move the department through the stages - (1) Perception. (2) Metrics. (3) Info orientation. (4) Processes.
55
What skills and ideas would you bring?
Integrity, Honesty, Skill set, Forward-looking - Allowing others to be the best they can be - Share values of the company here. Innovate, Collaborate, Execute, Deliver - Move the dial - Someone you want on your team, driven to deliver but aware of the importance of collective effort. - Technical competencies (Matrix) and enabling competencies (4 from matrix!).
56
How do you like to manage?
**(1) Aware of critical areas and critical numbers (2) Accurate information (3) Clearly communicated (4) Credibility, leading to decision making, leading to agility (5) Listen more than you speak (6) Teach, Train, Communicate, Coach (7) Lead from the front and the side (8) To smile and say thank you is very important.**
57
In 5 years time?
Valued partner and Trusted colleague.
58
4 key points in approaching job / Department?
**(1) Translate board objectives into financial plans. (2) Useful resource rather than police force. (3) Business intelligence. (4) Controls-conscious environment.**
59
What have you achieved?
Innovated, Collaborated, Executed, Delivered, Moved the Dial - EY, Farstad, Online, ASF.
60
Like and dislike about last job?
Company, Values, Innovative, Different. Physical environment - Numbers today vs People, Systems, Processes, Systems and Processes did fit the Business Model, Chaotic (5) + Okay to say it has not worked out, Two different directions, No fault parting.
61
Time worked in a team?
ERP project x 2, Covid, Due diligence. SPA, Move, Legal issues, Disciplinary, Wind down, Dilapidations.
62
What would co-workers say about you?
**Supported and allowed, Facilitated and enabled, Reciprocated professionally, Believed.** Impressed, Surprised, Valued, Partner.
63
How do you deal with stress?
Analyse and understand, prioritise and do, and deal with as part of a team. Breathing, Exercise, laughter.
64
Creativity professionally?
(1) A creative mind anticipates the next disruption. (2) Someone will come for your lunch. (3) Be among the first to recognise that their industry has changed.
65
Ratios (9)?
Return on Capital Employed. Debt Ratio. Gearing ratio, Interest Cover. Current Ratio. Quick Ratio. Receivables Collection Period. Payables Collection Period. Inventory Turnover Period.
66
The 3 key decisions at corporate level?
The Investment Decision (Appropriate investment decisions - Fulfil the company's primary objectives). The Financing Decision (Working Capital / Capital Structure). The Dividend Decision (Reflection of the Investment and Finance Decision).
67
Risks faced for companies dealing in foreign currencies?
Transaction, Translation and Economic. Exchange rates and changes in are as important as underlying profitability in selecting an overseas project.
68
What is the NPV of a project?
The sum of the discounted cash flows minus the initial investment.
69
What is Free Cash Flow?
The actual amount that a company has left from its operations that could be used to pursue opportunities that enhance shareholder value.
70
3 elements of business reorganisation?
Portfolio restructuring (Changes in the mix of assets). Organisational restructuring (Changes in organisational structure). Unbundling.
71
What are your core values?
Integrity, Honesty, Adherence to skill-set, Forward-looking - Allowing others to be what they can be - Share the values of the company also.
72
What sets you apart as a person? Professional?
Innovate, Collaborate, Execute, Deliver - Move the dial - Someone you want on your team, driven to deliver but aware of the importance of collective effort. - Technical competencies (Matrix) and enabling competencies (4 from matrix!).
73
If you could go back and change one thing about your career, what would that be?
Developed people more knowing how much I have got out of it latterly.
74
About a time when you stood up for the right thing to do?
Enhanced redundancy payments at IK-UK.
75
Last thing you taught?
**Budgets to budget holders ASF.**
76
Situation where you took the initiative and made something happen?
**Learning sessions ASF.**
77
Last good idea you had?
Learning sessions ASF.
78
An example of when you had to improvise to reach your goal?
ERP project, Graham Anderson.
79
Last angry and why?
More resigned (Rob Deakin) but resolved immediately to make best of it.
80
Most dislike about yourself?
How much I value friendship but how useless I am for staying in touch.
81
Biggest set back of your career?
Covid but achieved much through teamwork and resilience.
82
Something you have tried in your job and it has not worked?
Contrast between Julie and Karen.
83
Time a client unhappy?
Alasdair and terms and agreement thereon.
84
Time went against company policy.
There for a reason! However, if something would raise through appropriate channels.
85
What do people assume about you that would be wrong?
How much I value simple kindness.
86
Something that is not on your CV?
John Slack. One of the most rewarding friendships of my life.
87
A time when you supported a member of your team that was struggling?
Julie - Time - Workload. Karen - Time - Mental health.
88
Ever stolen a pen?
No. I am scrupulous in that regard. Earphones and battery pack handed back.
89
Lie on behalf of your boss?
Honesty is everything. By the way, that is an impossible question. :)
90
What have I not asked you that I should have?
Covered everything.
91
Biggest issue between you and current / previous manager?
Direction ASF - Standardisation vs Personalisation.
92
Last big decision you had to make?
Leaving ASF - Had to do wind down correctly even if it meant a reduction in role.
93
Time when you disagreed with another?
Direction ASF - US branch open or closed.
94
In charge of parts of the company that do not generate revenue?
Finance, HR, Company Secretary, Legal. IT & Information Governance, Procurement, Logistics, Facilities, Quality & Compliance.
95
ASF Summary?
Went there on the understanding I would work to replace FD over a period of time.
[Challenge from outset, let's just say state of disrepair] / [Things coming fast, backfilling for 2] / [Had to learn quickly].
Happy to do. That is my nature.
[Resignation] / [Learn own role] + [Repair own role] + [Handover] / [Prepare for interview].
Hold it together.
[Plug and play], [GFC in place], [Not long there], [Understand selection].
[3+3] [Good on many respects] / [Reporting today vs People, Systems, Processes] [Systems and Processes did not fit the business model] [5 issues present] / Again, good in many respects] [Okay to say time to go] [Two different directions] [No fault parting]
[Online FD (5-4) + 6] / [P&L. Balance sheet, Working, Mechanics] [5 - 16] / [Strengthen skillset and increase motivation.]
[F/t. P/t, Contract] / [FC to FD to other] / [Open to all].
96
7 steps in the Planning and Control Cycle.
(1) Identify objectives [PLANNING]
(2) Identify potential strategies [PLANNING]
(3) Evaluate strategies [PLANNING]
(4) Choose alternative strategies if required. [PLANNING]
(5) Implement the long-term plan
(6) Measure actual results and compare with plan [CONTROL]
(7) Respond to divergences from plan [CONTROL]
97
The objectives of a budgetary planning and control system
**(1) To ensure the achievement of the organisation's objectives.
(2) To compel planning.
(3) To communicate ideas and plans.
(4) To coordinate activities.
(5) To motivate employees to improve their performance.
(6) To provide a framework for responsible accounting
(7) To establish a system of control**
98
Idea # Use Finance Department 4 x 3 and Price, Market etc. as questions for interviewer!
Idea # Use Finance Department 4 x 3 and Price, Market etc. as questions for interviewer! + 4 key elements of what you need to know about an organisation.
99
Cash Flow Accounting
(1) Tells you what the income statement and balance sheet do not.
(2) Tells you not not just how much but WHERE it came from. (£100,000 - Earned, Borrowed or Sold?)
(3) Reconciles profit and cash.
CASH IS FACT, PROFIT IS AN OPINION
100
SCAMPER
**SCAMPER - Substitute, Combine, Adapt, Modify, Put to other use, Eliminate, Reverse.**
101
More cohesion rather than additional hierarchy
(1) More cohesion is required rather than more hierarchy. (2) What is required is a network of leaders. (3) Leaders do not need positional power to influence others.
102
Preferable to present solutions rather than questions or asks for views.
**Make good, clear, firm recommendations and people will see you as a confident, professional problem solver who knows how to get things done. These are the attributes you need to be known for.**
GOOD / CLEAR / FIRM CONFIDENT / PROFESSIONAL / PROBLEM SOLVER / WHO KNOWS HOW TO GET THINGS DONE
103
SMART
Smart, Measurable, Achievable, Realistic, Timely.
104
Work with what you have to begin.
**The task is to manage what there is and to create what could or should be.**
105
If looking for someone to hire, look for 3 qualities.
Integrity, Energy and Intelligence.
If they don't have the first, stop there!
106
Integrity at interview.
Present themselves? Confidence without arrogance? Pride in work but don't have all the answers? Team work alongside own.
107
Intelligence at interview.
[1] Do their answers show a level of analysis? [2] Can they see the bigger picture and how their work fits into the whole? [3] Are they interested in your operation? [4] Do they try to contextualise their answers in respect of your organisation? [5] Do they possess common sense or are their ideas workable in the real world?
108
All reports should be short and useful.
**Concentrate not on what is running to plan in first instance but what is not. You do not need to be bogged down in data which tells you nothing.**
109
4 key measurements that tell you all you need to know about an organisation. (Use for interview questions)
**(1) Organisation's overall performance.
(2) Employee engagement
(3) Customer satisfaction
(4) Cash Flow**
110
Training and Employees.
Better to train people and have them leave and not to train them and have them stay.
111
Policies in place for..
**Reconciliation
Authorisation
Communication
Journals
KPI's
Revenue
Costs
Payroll
Tax
All balance sheet categories.**
112
Financial Performance.
**Financial Performance measures include [Revenue, Costs, Profit,] [Cash Flow and Share Price.]
Non-Financial Performance includes the fulfilment of responsibilities towards customers and suppliers and the welfare of employees and society in general. **
NFPI's are useful in the modern business environment.
113
Connect the dots.
**Connect the dots between individual roles and the goals of the organisation. When people see that connection, they get a lot of energy out of their work. They feel the importance and meaning in their job.**
SELF / FINANCE / ORGANISATION / MARKETPLACE
114
True motivation comes from 4 things.
**(1) Achievement (2) Recognition. (3) Job satisfaction (4) Personal development**
115
ERP projects. The key requirement?
Build out from within. ERP consultants borrow your watch, tell you the time, and then walk off with your watch!
Enterprise Resource Planning Systems - ERPS - Are software systems designed to support and automate the business processes. Integrated software packages that control all personnel, material, monetary and information flows in a company.
116
Take a carefully prepared notepad.
Take a carefully prepared notepad.
117
Forecasting.
1. See trends. 2. Predict future
118
Budget observation
**Fixed budgets do not work today. A budget is too static an instrument and locks managers into the past - into something they thought was right last year. To be effective in a global economy with rapidly shifting market conditions and quick and nimble competitors, organisations must be able to adapt constantly their priorities and put their resources where they can create the most value for customers and shareholders. In order to do that, the concept of the Beyond Budgeting Management Model comes into play.**
Traditional Budgeting Process versus Beyond Budgeting Processes.
[1] GOALS - Short-term focus versus Long-term focus.
[2] CONTROLS - Financial indicators (past focus) versus Past and Future indicators.
[3] REWARDS - Individual teams (Non-sharing) versus Reward as a whole.
[4] PLANS - Predict and Control versus Continuously Updated
[5] RESOURCES - Centralised allocation versus Available on demand to fast react to opportunities.
RAPIDLY SHIFTING MARKET CONDITIONS / NIMBLE COMPETITORS / RESOURCES WHERE THEY CAN CREATE THE MOST VALUE.
119
Balanced Scorecard (Beyond Budgeting Management Model)
**The introduction of new management instruments such as the Balanced Scorecard, which help to better align the entire organisation with corporate strategic objectives and to focus it on the essentials, has created the right foundation. Because if corporate objectives and the strategies are clear for all people in an organisation, one can, in principle react to changing market conditions. But then the fixed budget comes in the way and prevents organisations from really doing the right things. What is often missing is a more flexible operational planning and control model. The Beyond Budgeting Management Model looks to fill that gap.**
CORPORATE OBJECTIVES AND STRATEGIES ARE CLEAR TO ALL
120
Financial Performance
Financial performance measures can be divided into 4 main groups.
Profitability, Liquidity, Gearing and Growth.
Financial Performance measures include Revenue, Costs, Profit, Cash Flow and Share Price. (5)
Non-Financial Performance includes the fulfilment of responsibilities towards customers and suppliers and the welfare of employees and society in general. [4-way]
NFPI's are useful in the modern business environment.
121
3 key considerations in business
(1) Pricing decisions. (2) Establishing the profitability of different products. (3) Inventory valuations.
PRICE / PROFIT / INVENTORY
122
What is internal control?
**Processes, designed and effected by those charged with governance, where rules/procedures and mechanisms are introduced and implemented within a business to ensure integrity, accountability, compliance, fraud and effectiveness and efficiency of operations.**
