Digital transformation in finance management is imperative now more than ever. It has become abundantly clear that while the primary role of CFOs remains the same, the strategic context and timeframe have added new parameters for their function. The role of the CFO runs the gamut from financial management, risk management, cost rationalization, and strategic growth opportunities. And in today’s hybrid work environments, ERP processes dictate the speed and efficiency with which their teams can collaborate and get things done. So, more than ever, CFOs are under pressure to select the right ERP system.
Before they zero in on a best-fit system, it is pertinent to be sure that user experience is far up the totem pole of priorities of the solution provider. Today’s users have no tolerance for poor experiences, and neither should the CFO. An effective ERP system also gives CFOs a top-down view of enterprise-wide data with operational and financial information. It enables them to make accurate data-driven decisions that build a culture of efficiency across the enterprise.
Some of the other ways in which ERP solutions empower CFOs are:
As the enterprise’s primary financial controller, the CFO is responsible for all accounting and financial reporting processes. ERP solutions offer comprehensive financial management at their core. But it doesn’t end there. For more meaningful financial management, a complete view of the business is essential. ERP solutions also integrate other relevant data into their accounting workflows. For example, it is now possible to see procurement, invoicing, and cash flows simultaneously. Operational factors affecting the company’s finances are also built into the context for CFOs to act with immediacy.
Data-driven decision making
One of the tasks of a CFO is to plan for the company’s financial future. It includes cash management, loans, restructuring debts, equality raises, etc. ERP systems can provide data from all operational areas enabling better planning of the financial workflows. It can also include pertinent data from external sources such as interest rate projections and other global economic indicators.
Compliance and taxation
Compliance matters depend on the industry and the size of the company. ERP offers a high-level set of tools to manage compliance and tax-related reporting. For instance, Segregation of Duties (SoD) is part of the ERP system, and it enables the required control of many regulations. In addition, the ERP reporting interface helps the CFO investigate the SoD to ensure compliance or offer remediation where necessary.
Performance tracking visibility
Modern ERP systems come with cutting-edge analytics tools, providing visibility into the company’s performance within the context of defined operational and financial KPIs. They enable CFOs to leverage historical data and use predictive analysis to take measures to ensure that critical challenges are addressed immediately. They also equip CFOs with intelligent operational insights to improve their decision-making capabilities.
360° view of enterprise data
A comprehensive understanding of the enterprise’s financial data is the responsibility of the CFO, who also acts as the senior treasury manager. Modern ERP systems provide a single unified view, shedding light on the entire enterprise and all the issues that may impact the business’s financial state. CFOs gain a consolidated perspective in real-time, offering cost-effective methods of collecting, processing, and analyzing data with little to no data loss from the system’s silos. CFO can gather multiple data variables, the relationship between them, and the performance of the enterprise.
The CFO is one of the most influential C-suite members of the modern enterprise. But without the right tools, they would be unable to get insights to improve strategic and operational decisions. With cloud-based ERP systems, CFOs can reduce costly investments involved in maintaining legacy systems while deploying cost-effective financial management tools. This way, they can better help enterprises navigate strategically in the direction of digital transformation-fueled growth.
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