Ce diaporama a bien été signalé.
Le téléchargement de votre SlideShare est en cours. ×

4 best practices_using finance applications for better process efficiencies

Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Prochain SlideShare
The Compliance Gap
The Compliance Gap
Chargement dans…3
×

Consultez-les par la suite

1 sur 3 Publicité

Plus De Contenu Connexe

Diaporamas pour vous (18)

Similaire à 4 best practices_using finance applications for better process efficiencies (20)

Publicité

Plus par Kaizenlogcom (20)

Plus récents (20)

Publicité

4 best practices_using finance applications for better process efficiencies

  1. 1. Using Finance Applications for Better Process Efficiencies and Data Accuracy BEST PRACTICES from the Expert Network at
  2. 2. INCREASED DEMANDS REQUIRE BETTER FINANCIAL TECHNOLOGY Today’s CFOs are expected to do it all: lead strategic initiatives, manage relationships with investors and other stakeholders, and help identify and capitalize on new opportunities — all while maintaining accountability for all finance, IT, treasury, tax, internal audit and risk management functions. As a CFO, there’s a good chance you are saddled with existing legacy financial applications that are incapable of efficiently processing the increasing real-time demands of your business. Legacy systems often rely on manual processes that are prone to data entry errors. You are not alone; many of your finance and business colleagues in a recent survey identified the following as their top everyday challenges:1 • Importing and entering data efficiently and accurately from technology silos • Deciphering model formulas and inaccessible data sources • Obtaining timely and comprehensive data from across the organization • Accessing models and data simultaneously, as well as controlling iterative processes and version changes. Research also shows that: • 40% of senior finance executives say their current information systems can’t analyze financial and performance data “very well,” and that management can’t access the information they need in a timely manner.2 • 74% of best-in-class companies cite automation of core business operations, functions and controls as their top strategic action.3 • Over 75% of CFOs are considering upgrading their existing enterprise systems within a two- year period,4 a strong indication of the need for improvements. Long story short? Identifying and implementing best-of- breed enterprise-level finance applications that improve process efficiencies and data accuracy is increasingly critical to success. These applications can: • Integrate comprehensive financial metrics from diverse business units • Accelerate decision-making by facilitating enterprise-wide collaboration • Improve data accuracy and timeliness by eliminating manual processes • Reduce fraud and risks through automated monitoring • Reduce the time required to perform functions like the close process and budgeting • Free finance professionals to focus on value- added analysis and strategic initiatives versus rote tasks like data collection and administration BEST PRACTICES FOR IDENTIFYING AND UTILIZING MODERN FINANCIAL APPLICATIONS The good news? CFOs and their teams are increasingly able to pick and choose from a broad range of superior financial applications. Multiple surveys indicate that best practices for determining the right applications include the following: 1. Clean house regularly. Regular assessments of legacy in- house systems and financial practices are imperative. Far too many CFOs discover patchwork structures, shadow systems, redundant databases, and process gaps that actively prevent smooth, efficient flows of information. Nido Petroleum, an oil and gas company focused on the offshore Philippines, had legacy systems that were unable to effectively handle forecasting, reporting or modeling. Complex spreadsheets were interlinked, leaving users unable to understand them or decipher the audit trail to underlying numbers. Nido installed a flexible performance management system that allowed data from complex asset-specific spreadsheets to be imported into the model, giving the company a single source of financial and key non- financial data. The finance team got enhanced reporting and forecasting abilities, as well as real time cash flow information and P&L capabilities. Risks from forecasting inaccuracies and lack of transparency were reduced, and far less time was spent keying data and double-checking Excel spreadsheets. 1 “Business Planning Survey.” Www.Quantrix.com. Quantrix, 2013. Web. <http://www.quantrix.com/quantrix/userfiles/file/2013%20business%20planning%20survey.pdf 2 Technology Enabling Business Change: Enable Business Strategy with Technology, CFO Research/ KPMG, CFO Publishing LLC, August 2013. 14692315.pdf, 3 Aberdeen Group, Timely Insights into Policy Compliance with Continuous Monitoring, April 2014. 4 14694111.pdf. What Is Next for F&A ERP and Information Technology, “The Future of F&A ERP and Information Technology, “ CFO Research/KPMG, August 2013
  3. 3. 2. Focus on automation and integration. There is no way around it; a single version of the truth requires integrated, standardized processes. Automated applications can provide optimal ERP and BI integration, improved web access and visualization, better mobile connectivity and integration, real time reporting, and greater data accuracy. Queenslanders Credit Union in Australia needed automation that would permit more efficient processing, meet compliance regulations, and give management integrated data reporting to provide business insights. Led by the CFO, a new platform that standardized processes and improved data security was incrementally installed. Manual processes such as journal uploads, reversals and payments were automated, greatly reducing the risks of manual keying and interpretation errors. New reporting tools allowed executives to develop and manage their own reports, and information could be quickly accessed and viewed from different perspectives, with full drill- down capability to individual transactions. 3. Consider the cloud. You need to evaluate all the risks, benefits and opportunities of cloud-based systems. They often provide a lower total cost of ownership compared to on-premise solutions while providing superior process efficiencies and data gathering, and far greater flexibility and agility. Organizations can bring newly acquired businesses into the fold more quickly and reduce the risk of pursuing growth opportunities. Security worries have traditionally held many companies back from utilizing cloud platforms, but advancing technology and increasing adoption rates are starting to alleviate those fears. • It’s estimated that over 60% of U.S. companies used some form of cloud platforms in 2013,5 with most reporting that cloud deployment improved their bottom lines.6 • Cloud adoption has become integral to business, with 45% of U.S. companies in 2014 saying that they already, or plan to, run their company from the cloud.7 • Current prevailing wisdom holds that reputable cloud providers can actually provide enhanced security, compared to what most companies can achieve independently. 4. Think single systems. A single integrated application for budgeting, planning, and forecasting can result in a fully automated process that also provides you with a single system of record. It allows for far greater flexibility in budget methodologies (e.g., inclusion of performance based and driver–based budgeting) while reducing erroneous data and allowing comprehensive data utilization. Integrated streams of data and the application of predictive analytics allow CFOs to provide new insights into operational, market and customer trends. Companies following this approach have seen dramatic results in terms of both efficiency and cost savings 5. Banish spreadsheets from the close. Your financial close should be automated, centralized, and standardized. Modern applications allow you to monitor and control the entire close process and dramatically increase efficiency by automating tasks such as reconciling transactions, posting journals, and consolidating data from disparate systems. The result? A faster close with fewer errors and simplified reporting. Chicago Tube & Iron, one of the largest distributors to the steel services industry in the U.S., wanted to eliminate year-end fiscal blackout periods and allow for multiple fiscal periods to be open simultaneously. Report writing for post-close reporting needed to be simplified, as did the ability for accounting staff to post to the general ledger. Finance wanted to integrate operating data with ongoing financial data management, and executives wanted more dashboard reporting. The company chose a financial enterprise system and successfully executed an accelerated implementation time of three weeks. Preparation time for the CFO’s monthly report fell by 40% and ad-hoc reporting time was reduced from two days to a few hours. Finance gained the ability to monitor and adjust financial and operational data on a daily basis. Conclusion: Modern Finance Applications Can Make a Demonstrable Difference Businesses today require CFOs and their teams to handle an ever broader and more complex range of financial functions. In order to successfully meet these increasing demands, finance departments require modern applications that can improve process efficiencies and ensure data accuracy. The identification and implementation of appropriate financial applications can result in almost immediate impacts, including accelerated ROI; greater productivity; better business reporting, analysis, and insights; stronger financial controls; improved risk and fraud reduction; and a more agile and responsive financial team. The net result? You, your team and your company can all profit handsomely. 5 Emison, Joe M. “Research: 2013 State Of Cloud Computing - InformationWeek Reports.” Information Week. UBM Tech, 02 Apr. 2013. Web. 22 Oct. 2014.  6 “The Cloud Enabled Data Center.” White Paper (2013): p.1. Panduit Corp., May 2013. Web. <www.panduit.com>. 7 “2014 Survey Results: The Future of Cloud Computing,.” Northbridge. Northbridge Venture Partners, GigaOM Research, May 2014. Web. 18 Aug. 2014.

×