Finance: The Last to Know, First to Be Blamed
CA Gagan Gupta
Founder & Principal, Kishnani & Associates
CA Gagan Gupta is a seasoned Chartered Accountant with extensive expertise in taxation, audit, financial consulting, and business advisory. A fellow member of the ICAI since 2021, he has been practicing since 2016, providing strategic financial solutions to businesses, startups, and individuals. Under his leadership, Kishnani & Associates delivers precise and ethical financial services, ensuring seamless regulatory compliance and sustainable growth for clients.
In the modern organizational framework, Finance often finds itself walking a tightrope—expected to balance the numbers while being blindsided by decisions made in isolation. The department is typically brought in only after a strategic move has already been executed, tasked with reconciling the aftermath rather than contributing to the planning. This reactive involvement places Finance in a precarious position, where they are the first to be blamed when things fall apart, despite having no say in the initial steps. It is time to examine this systemic issue and advocate for a cultural shift, recognizing Finance as a strategic partner, not just a financial fixer.
The Reactive Trap: Left Out Until It’s Too Late
Far too frequently, the Finance team is kept out of critical business conversations, leaving them scrambling to fix what they were never informed about. Consider the following scenarios that play out in many companies:
HR says, “We already approved the raises. Just update the payroll.”
Sales boasts, “We closed a five-million-dollar deal. Finance will handle the terms later.”
Operations states, “The inventory was moved weeks ago. You needed records?”
Each of these statements reflects a dangerous pattern: decisions made without cross-functional consultation. The assumption is that Finance will simply catch up and adjust accordingly. But what happens when these decisions trigger ripple effects?
The Consequences: When Finance Pays the Price
When Finance is left out of the initial decision-making process, the organization risks more than just a few accounting errors. The fallout can include:
Payroll discrepancies – Raises implemented without prior budgeting disrupt planned salary structures, impacting not just payroll but also tax liabilities and long-term projections.
Cash flow disruptions – A five-million-dollar deal might sound great, but if the payment terms are long or unclear, it can cripple working capital.
Vendor payment delays – Inventory moved without Finance being in the loop can lead to late or missed payments, damaging supplier relationships.
Audit red flags – Untracked movements and unauthorized approvals raise compliance concerns, drawing scrutiny from auditors and regulators.
And when these issues surface, everyone turns their eyes to the Finance department. This leads to the inevitable question: “Who approved this?” What follows is often silence until attention shifts to the Finance department.
The Misplaced Accountability
Finance is often positioned as the organizational watchdog, expected to safeguard fiscal discipline. But this role becomes untenable when the department is not included in the decisions for which it is later held responsible. The reality is simple: Finance cannot be expected to fix what it was never involved in designing.
This approach not only undermines the Finance team but also weakens the entire decision-making framework. When Finance is only called in after the fact, the company misses out on strategic insight that could have improved outcomes or avoided pitfalls entirely.
Time for a Mindset Shift
To break this cycle, organizations must shift from a reactive to a proactive financial culture. That begins with three foundational principles:
Finance at the Table from Day One
Strategic decisions—be it hiring sprees, product expansions, or vendor negotiations—must include Finance from the outset. Their perspective ensures feasibility, financial alignment, and long-term sustainability.
Example: A retail company planning to open five new stores involved Finance early in the process. This allowed for a well-modelled cash flow plan, leading to smooth store launches without overleveraging resources.
Financial Literacy Across Teams
Finance shouldn’t be the only department concerned about numbers. Every team—HR, Sales, Operations, Marketing—needs a basic understanding of how their choices affect the company’s financial health. This cross-functional financial literacy creates more informed decision-making across the board.
Example: A software firm initiated finance workshops for its product and engineering teams. The result? Product managers began incorporating revenue models into their feature designs, shortening the time-to-profitability.
Shared Accountability for Financial Health
Financial well-being is not just Finance’s burden. It’s a collective responsibility. Leaders across departments must be accountable for budget compliance, cost efficiencies, and value generation.
Example: In a manufacturing firm, procurement, operations, and Finance collaboratively set quarterly financial targets. This alignment resulted in fewer budget overruns and improved vendor terms.
From Clean-up Crew to Strategic Leaders
It is time to reposition Finance not as the department that cleans up after decisions, but as one that prevents issues before they arise. Their insights can improve deal structuring, enhance risk management, and optimize resource allocation.
By empowering Finance early in the process, organizations foster better alignment between goals and execution. Rather than being the last to know, Finance becomes a strategic enabler, contributing to growth and stability.
The Role of Virtual CFO Services
For many growing businesses, the solution lies in Virtual CFO services. A Virtual CFO brings the strategic expertise of a seasoned financial executive—without the full-time cost. Especially for startups and mid-sized businesses, a Virtual CFO bridges the gap between tactical accounting and high-level financial planning.
Virtual CFOs help in:
- Strategic financial planning
- Budgeting and forecasting
- Cash flow management
- Investor and board reporting
- Compliance and risk control
They don’t just balance the books—they guide decision-making, identify opportunities, and prevent problems before they occur.
Example: A tech startup engaged a Virtual CFO when preparing for a funding round. The Virtual CFO helped create financial models, improve compliance reporting, and prepare investor-ready presentations. The company secured funding with confidence and clarity.
Virtual CFOs are also particularly valuable in companies where the finance function is under-resourced or struggling to keep up with rapid growth. By acting as an embedded partner, they ensure Finance is never the last to know—because they are already at the decision-making table.
From Reactive to Proactive
The transformation begins when Finance is seen not as a support function but as a core part of the leadership team. Whether through an in-house team or a Virtual CFO, early involvement in strategic decisions can significantly enhance business outcomes.
Finance professionals bring discipline, clarity, and forward-looking insight. They don’t just keep score—they help the team win.
Conclusion: A Win for All
Organizations thrive when they move from reactive financial management to proactive financial leadership. This shift requires not just a change in structure, but a change in mindset. Involving Finance early, fostering financial literacy, and encouraging shared accountability can prevent costly mistakes and drive smarter growth.
And for companies that need high-level financial direction without the overhead, Virtual CFO services offer an ideal solution, bringing strategic finance to the forefront, without delay.
Let us stop asking Finance to fix what it was never a part. Let’s start empowering them to shape what comes next.
Because when Finance leads, the whole organization benefits.
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