The Finance Function as Navigator: Rethinking Its Role in Growth

There is a lot of talk today about transforming the finance function from a back-office role into a growth engine.

I agree with the intention, but I challenge that thinking.

The finance function is not the growth engine. It’s the navigation system.

An example to help illustrate what I mean:

A few years ago, Venturity stepped in to help a company with significant accounting turnover while its CEO pursued an acquisition strategy.

On paper, those looked like two separate projects. But one depended on the other.

Before the company could pursue acquisitions, it needed reliable accounting and financial reporting that could stand up to an audit. That audit would support a refinancing, which would unlock access to capital and make the acquisition strategy possible.

But that was only part of the finance function’s role.

With trustworthy information in place, the team could look forward and determine: How would an acquisition fit into the existing business? What would it mean for margins and cash? What might need to change operationally to ensure a smooth integration?

Ultimately, the acquisitions would become the company’s growth engine. And the finance function served as the navigator, helping the CEO find the best path to get there.

For me, that distinction matters.

Financial Management Turns Strategy Into Action

Leadership sets the strategy. Operations puts it into motion. And the finance function measures the progress and ultimate results.

The finance function connects the three.

But to do that well, the finance function must understand how the business actually works:

• Where is leadership trying to go?
• How does the business operate?
• What drives revenue, margin, and cash?

From there, financial analysis can connect what’s happening in operations to what’s showing up in the numbers.

Say a financial report reveals margin erosion. Knowing that the margin is down is only the beginning. The more valuable question is why.

Maybe the pricing changed. Inventory moves differently now. Labor costs increased. Or a project is underperforming.

Surfacing the questions and tracing the information back to operations can result in pivots that improve the outcome.

That’s where the finance function becomes the navigator, creating a feedback loop between the decisions made across the organization and the financials serving as the ultimate scorecard.

“If you have a world-class finance function, what’s left is the operational story of your business.

“It allows you to see those drivers, where the issues are, where the opportunities lie, and when you may need to pivot.”

Deanna Walker

CEO, Venturity

That creates a cycle:

Good Navigation Starts With Reliable Information

Of course, that feedback loop is only as useful as the information behind it.

That starts with accounting.

Strong accounting captures what has already happened across the business and makes sure the financials accurately reflect that activity. With that foundation, every forecast, dashboard, and strategic recommendation built on top of it becomes more reliable.

Yet too often, companies rush to one of two extremes.

Some stop at the historical information: the books, financial statements, compliance reporting. They know what happened, but aren’t using that information to inform what comes next.

Others race ahead to dashboards, forecasts, and AI-powered analysis before they can fully trust the underlying numbers.

Neither approach gets you where you need to go.

“Really solid accounting with financial oversight is not the finish line. It’s the starting point.”

Deanna Walker

CEO, Venturity

So I say, start with accounting as your foundation. Then, be selective about what you do with the information.

Today, we have access to more data, delivered faster than ever before. The challenge is knowing which information deserves your attention.

For most businesses, there are three or four metrics that really move the needle. The finance function needs to know what they are, what each metric reveals about the business, and when a change warrants attention.

Technology can surface those signals faster. AI can help analyze them. But neither can tell leadership which route to take.

That requires a finance function that can put the information in context, offer analysis, communicate the findings, and turn insight into action.

The Modern CFO Finds a Path Forward

Reliable information and financial analysis give leadership a clearer picture of the business. But it can also help open up possibilities.

That’s where the CFO plays an important role within the finance function – and why the finance function needs a seat at the table as major decisions are being made.

Historically, CFOs spent a lot of time protecting the business: identifying risk, ensuring compliance, protecting cash, and finding the “gotchas.”

Those responsibilities haven’t disappeared. But today, they’re table stakes.

“When the CFO is the regulator in the room, the finance function can become a roadblock to growth.

“I want CFOs to understand the risks, then help leadership figure out what’s possible. I call this possibility thinking.”

Deanna Walker

CEO, Venturity

Possibility thinking changes the conversation from “Here’s why we can’t” to “What would need to be true for this to work?”

That doesn’t mean ignoring risk. It means using financial insight to understand the options available, tradeoffs involved, and what might need to change to make the strategy viable.

Take growth.

Revenue and profitability tend to get a lot of attention. But the P&L can show growth, while your balance sheet reveals a company with liquidity challenges.

• Revenue can rise while cash declines.
• Expansion can strain working capital.
• Sales can tie up cash in receivables or inventory.

Bringing the finance function into the conversation early gives leadership visibility into those tradeoffs while there’s still time to consider different paths:

• Could we change the timing?
• Model another scenario?
• Find a different source of capital?
• Establish guardrails to make the strategy viable?

Sometimes, the analysis may even lead to a bigger question:

Would we be better off if we were half the size, but twice as profitable?

Getting bigger isn’t always the right goal. Building a stronger, more profitable business might be a better option at the time.

Give Your Finance Function a Seat Up Front

Think back to the acquisition story.

Accounting wasn’t the growth engine. Neither was the audit or the refinancing. The acquisitions were.

But the finance function gave leadership the information and perspective to navigate the decisions that made the strategy possible.

That’s the difference between bringing the finance function in early and asking it to react after a decision has already been made.

So when I hear that the finance function should become a growth engine, I come back to the distinction I made at the beginning:

Let the business be the engine; and give the finance function a seat up front, where it can help you navigate.