Home > Insights > About Finance Capabilities, Competencies, and Capacity

About Finance Capabilities, Competencies, and Capacity

About Finance Capabilities, Competencies, and Capacity

By: Ciopages Staff Writer

Updated on: Feb 25, 2023

Difference between Finance capabilities, competencies, and capacity

There is a lot of ambiguity and confusion about finance capabilities, competencies, and capacity.  Many folks, who are qualified professionals in their own right, make the mistake of using these terms – finance capabilities, competencies, and capacity interchangeably.  Of course, if the receiving party of your communication knows precisely what you mean, generally it is OK to use the standard terms in your enterprise.

However, when you are trying to define what these terms mean, either for your data dictionary or your IT teams as technology enablement requirements, a more precise definition and clarity about these terms will be invaluable.

Difference between Finance Capabilities, Competencies, and Capacity:

Finance Capabilities:

In the enterprise context, particularly as it relates to the business/IT intersection, Finance Capabilities mean “What Finance function does and has the ability to do” and is an encapsulation of the essence of finance functions at an abstract level.  Finance Capabilities are an integral part of the overall enterprise capabilities, and these are a part of the business architecture nomenclature.  Practitioners also use other terms like Finance Capability, Finance Business Capability, or the collective grouping as Finance Capabilities Model or Finance Capabilities Map.  For example, “Capital Allocation” or “Risk Management” are capabilities which are typically a part of a finance capabilities model.

Finance Competencies:

Finance Competencies relate to the skills and attitudes of the people involved in the finance function in an enterprise.  For example, “Analyzing a Balance Sheet” or “Modeling in Excel” are competencies that people may have.  Of course, there are generic competencies as well, such as “Ability to listen” or “Being Collaborative.”

Financial Capacity:  There are two variations which most people use – Financial Capacity and Finance Capacity. Financial Capacity is the ability of the person or the enterprise to shoulder a fiscal responsibility. For example, “Do you have the financial capacity to shoulder the second mortgage?” or in a corporate context, “We don’t have the financial capacity to make this acquisition.”

There you have it. The difference between Finance capabilities, competencies, and capacity. So, next time you talk to your IT folks understand what the term “Finance capability or finance capabilities” may mean for them, and you.

Related Articles:

Finance Capabilities - What are Finance Capabilities? Finance capabilities are an abstraction of what accounting and finance function does and can do.  We… ...Read More
Finance Transformation PPTs - If you are looking for Finance Transformation PPT (Powerpoint) decks, you have come to the right place. CIOPages.com Accounting and… ...Read More
Finance Business Requirements: Compiling the transformation change needs - Finance Business Requirements is a compilation of a list of accounting and finance needs to enable strategy, structure, process and… ...Read More
Finance Transformation Outcomes - Talking with Global 2000 CFOs and other business/technology leaders about transforming the finance organization, here are the typical finance transformation… ...Read More
Finance Transformation Process - Finance transformation process is an encapsulation of the depth and breadth of effort required to successfully transform accounting and finance… ...Read More
Finance Transformation - Finance transformation (or more broadly finance and accounting transformation) is not a nip and tuck, but an invasive surgery to… ...Read More
Finance Transformation Innovation Agenda - The role of accounting and finance is changing and here are the finance transformation innovation agenda items that should be… ...Read More
Finance Transformation Framework - CIOPages.com Accounting and Finance Transformation Framework is a simple and cohesive approach to planning and executing a fundamental shift in… ...Read More
Accounting and Finance Transformation Drivers - What are the internal challenges which act as a clear and compelling set of Accounting and Finance Transformation Drivers? Here… ...Read More
Accounting and Finance Transformation Vision - The accounting and finance transformation vision is a fundamental rethinking and reimagination of the finance function to support the modern… ...Read More



Licensing Options:

We keep the licensing options – clean and straightforward.

Individual License: Where we offer an individual license, you can use the deliverable for personal use. You pay only once for using the deliverable forever. You are entitled any new updates within 12 months.

Enterprise License: If you are representing a company, irrespective of size, and intend to use the deliverables as a part of your enterprise transformation, the enterprise license is applicable in your situation. You pay only once for using the deliverable forever. You are entitled any new updates within 12 months.

Consultancy License: A consulting or professional services or IT services company that intends to use the deliverables for their client work need to pay the consultancy license fee. You pay only once for using the deliverable forever. You are entitled any new updates within 12 months.

Product FAQs:

Can I see a Sample Deliverable?

We are sorry, but we cannot send or show sample deliverables. There are two reasons: A) The deliverables are our intellectual property, and we cannot share the same. B) While you may be a genuine buyer, our experience in the past has not been great with too many browsers and not many buyers. We believe the depth of the information in the product description and the snippets we provide are sufficient to understand the scope and quality of our products.

When can I access my deliverables?

We process each transaction manually and hence, processing a deliverable may take anywhere from a few minutes to up to a day. The reason is to ensure appropriate licensing and also validating the deliverables.

Where can I access my deliverables?

Your best bet is to log in to the portal and download the products from the included links. The links do not expire.

Are there any restrictions on Downloads?

Yes. You can only download the products three times. We believe that is sufficient for any genuine usage situation. Of course, once you download, you can save electronic copies to your computer or a cloud drive.

Can I share or sell the deliverables with anyone?

You can share the deliverables within a company for proper use. You cannot share the deliverables outside your company. Selling or giving away free is prohibited, as well.

Can we talk to you on the phone?

Not generally. Compared to our professional services fee, the price of our products is a fraction of what we charge for custom work. Hence, our business model does not support pre-sales support.

Do you offer orientation or support to understand and use your deliverables?

Yes, for a separate fee. You can hire our consultants for remote help and in some cases for onsite assistance. Please Contact Us.

error: Content is protected !!