Rachel Porteous, Manager of the Transactional and Part-Qualified Finance division at Headstar, believes transactional finance deserves far more recognition than it typically receives.
Often viewed as little more than an administrative function, transactional finance underpins everything from accurate reporting and healthy cash flow to effective strategic decision-making. In this blog, Rachel explains why businesses that overlook their transactional finance teams risk weakening the very foundations of their finance function.
Why Transactional Finance Deserves More Recognition
When people talk about improving a finance function, the conversation usually focuses on FP&A, business partnering, AI, forecasting or data and analytics. Those areas are undoubtedly important because they help businesses make better decisions and plan for the future.
But there’s one part of finance that never gets the same attention: transactional finance. In many businesses, it’s generally seen as an admin function that just keeps things ticking over. However, I think that perception is long outdated.
In reality transactional finance is what holds everything together. Without it the rest of the finance team can’t do their job properly, or accurately.
Good decisions start with good data
Every business decision depends on having accurate numbers.
FDs and CFOs can only give good advice if the transactions underneath the reports are correct. Forecasts are only useful if the accounts are accurate, cash flow forecasts only work if customers are paying on time and suppliers are being managed properly.
When the basics aren’t right, reporting gets delayed, mistakes creep in, audits become more difficult and leaders stop trusting the numbers.
Before finance can add value, it has to get the fundamentals right Because if you can’t trust the data, you can’t make good decisions.
Your cash flow is important to you
Every business knows how important cash flow is, especially in today’s market, and transactional finance has a huge impact on it.
Good credit controllers help bring cash into the business more quickly and strong accounts payable teams build better relationships with suppliers. Accurate invoices mean fewer payment delays, fewer disputes and a smoother flow of cash through the business.
Businesses rarely get into trouble because they had a poor strategy meeting. They get into trouble because they run out of cash.
Your AP team aren’t just invoice processors
Transactional finance isn’t just about processing invoices or reconciling accounts. It’s where many of the biggest operational improvements in finance begin. Better processes, automation, stronger controls and more efficient systems all start here. When those things improve, the whole finance team benefits.
Transactional teams also spot problems early, they’re often the first to notice customers paying late, any supplier issues, unusual transactions or processes that aren’t working as they should.
They’re closer to what’s happening day to day than anyone else.
AI is great, but you still need a human
There’s a lot of talk about AI replacing transactional finance. I don’t see it that way and I’m certainly not nervous about it – you’re always going to need a human.
Technology can remove repetitive tasks, but it can’t replace good judgement, experience or accountability. The best businesses aren’t replacing transactional finance teams; they’re investing in them, giving them better tools and helping them develop new skills.
Technology can make a good process even better, but it can’t fix a bad one or convince a customer to pay.
Without it, your reputation is on the line
Think about the people your business deals with every day.
Employees expect to be paid correctly and on time, suppliers expect to be paid when they should be, customers expect accurate invoices and quick answers if something goes wrong.
When those things don’t happen, trust disappears quickly. A company’s reputation isn’t just built in the boardroom, it’s built through hundreds of everyday interactions, many of which are managed by transactional finance teams.
It’s time to give them more credit.
For years, finance transformation has focused on strategy, reporting and analytics, while transactional finance has been treated as a support function, but thankfully that’s beginning to change.
More businesses are starting to realise that transactional finance isn’t separate from strategic finance; it’s what makes it possible.
Strong processes, good controls, accurate data and healthy cash flow aren’t just operational tasks, they’re the foundation of every successful finance team.
Transactional finance may not be the most visible part of the finance function, but it’s often the part everything else depends on. Get the foundations of your transactional team right, and the reporting, forecasting and strategic decision-making across the business become infinitely stronger.
About the Author
Rachel Porteous is an award-winning recruiter with over six years of experience in the recruitment industry. Having rapidly progressed to Manager at Headstar, she now leads the transactional finance division. Known for her positivity and exceptional people skills, Rachel specialises in placing part-qualified and qualified finance professionals across the Yorkshire region.
