How to Increase Transparency in your Finance Processes?
When upper management has complete insight into the operations of the company, it runs more smoothly. Gartner’s market oracles recently published a list of nine characteristics that CFOs must possess to maintain success during times of crisis and uncertainty. Based on 20 years of research and strongly influenced by lessons learned from the financial crisis of 2008, the list needs a review.
- Placing more money on the line.
- Defending against scope creep.
- Critical Initiative Funding.
- Making it easier to take risks.
- Getting to know your customers.
- Cutting your losses.
- Careful cost-cutting.
- Identifying cost-cutting opportunities around the organization.
- Integrating Budget Models.
Even though each entry is based on a different goal, they all have one thing in common: the need for financial transparency. CFOs must provide the most up-to-date details on all facets of financial results when making new acquisitions, searching for cost-cutting opportunities, or modifying the years’ plans.
Impact of COVID-19 on Businesses
Even before the pandemic, CFOs struggled to obtain refined, regularly updated information. Data accessibility has become a pressing problem as more teams work from home and struggle to access the same data, software, and teamwork that they depend on in the office. Financial invisibility occurs when businesses have the requisite data (often distributed across the ERP) but are unable to access it easily, comprehensively, or consistently.
CFOs require access to reports and metrics that represent the most recent data available as they try to control cash flow, perfect accounts receivable, or safe loans and stimulus funding. The volume of information and the speed at which it is processed is well beyond the standard. As a result, CFOs are much less informed about financial performance data. One of the major threats that businesses face today is financial invisibility. In this crucial time, a single bad decision based on incomplete or unreliable data may sink a corporation, but that outcome can be avoided with a few tweaks.
Financial reporting is one way to convey visibility. Many business leaders are motivated by the need for a reliable, automated, and open reporting system that will provide them with the data they need, when they need it, for full transparency.
Specialized tools, such as those created by Global Data 365, can help. Each of our solutions integrates with common ERP software and automates the most time-consuming aspects of reporting. The solutions then produce and distribute reports in the format that the CFO prefers. That may mean regular updates in the standard Excel format or CFOs can go a step further and get real-time updates through specialized dashboards. Our tools keep financial visibility crystal transparent by making financial reporting simpler than ever while also enhancing the pace, scope, and accuracy of the resulting insights.
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