As CFOs take on ever-expanding roles and responsibilities, perhaps no area presents more challenges and opportunities for improvement than financial reporting.
Today’s organizations rely on an accurate, efficient financial reporting function. However, in an increasingly complex, hyper-speed world, CFOs and their C-suite peers are questioning whether or not the financial reporting methods of the past are adequate enough to take their organization into the future.
The Reporting Environment Has Changed
There is an increasing volume and pace of data that finance execs fear is significantly impacting the effectiveness of reporting. As well, the organizational environment intensified in complexity, as organizations add more legal entities, business units (often spread around the world) and reporting systems.
In our digital world, where we can do almost everything from the convenience of our mobile phone, expectations have changed. Yet companies are still held back by cumbersome, globally unlinked legacy systems. The fact is that many companies fail to capitalize on their data. It’s isolated and hidden in disparate systems instead of being leveraged to drive profits and remain competitive.
The Need for Actionable Insights
When we speak to CFOs and their teams, they stress the need for business insights that they can use to seize upon opportunities or avoid risk. However, reporting teams often don’t have access to the technology or tools needed to make sense of —and actionable decisions on— vast oceans of incoming data. This means that in-house F&A resources spend a lot of time searching for, downloading, entering and formatting data, before they can review it. More than ever the ability to get clean, normalized data and apply predictive and prescriptive analytics is top-of-mind for finance teams.
Velocity & Veracity
The second and third “painpoints” we hear quite a bit often go hand-in-hand. Companies are concerned not only about how long it takes teams to complete reports, but also about the accuracy of those final numbers. Organizations want to speed up reporting by removing roadblocks like information being locked up in someone’s spreadsheet. This means having a holistic view of the end-to-end processes and access to secure, collaborative tools that can be accessed anytime, anywhere to accelerate real-time data.
But they also want to get reliable, audit-proof data. There are a variety of factors that need to come together, namely automation and tighter controls and better governance through a best-practices approach.
A process transformation partner can do all the heavy lifting – the data compilation and reconciliation, giving their teams more time to review and analyze. Ultimately it helps them make more informed decisions.
When we meet with CFOs and their teams, often they approach us looking to access the latest technology, whether its automation tools like RPA or workflow solutions. But what is needed is the whole package – best practices and optimized processes, higher quality financial reporting, insights into where they compare to their peers in terms of reporting times, and for their best people to be able to do what they do best. There’s no off-the-shelf software that can deliver that.
By partnering with us, you will be able to transform data into reliable metrics that offer keen business insights – ones you can use to make better decisions, faster. If you’re interested in learning more, schedule an appointment today.