Some Best Practices to Follow for Finance Transformation
What is finance transformation?
Finance transformation is an idea of finance moving from the backward scorekeeper to a forward business partner. Accomplishing finance transformation needs change in people, processes, and the technology in order to aid those procedures. This entails involving the right people in the project such as finance, IT and line of business stakeholders. It also entails driving efficiency in Finance and operational processes and guaranteeing their alignment. It also utilizes the technology platforms to support the improved business processes.
Here’s what the customers say about finance transformation:
- The need to use more with the similar or few resources.
- The need to reciprocate better to the fast changing economic and business conditions.
- Pressure and stress from the management and external stakeholders for the sake of faster and more detailed information to aid the decision making.
- Expanding the volumes of data from the internal systems, websites and external sources like social media.
- The need for an enhanced finance and operations alignment, means getting operational plans and models in a better alignment for effective financial plans.
Now as we have been enlightened by the basic knowledge of finance transformation, let’s discuss its tenets.
Here are the seven best practices to follow for an effective finance transformation:
- Standardizing the ERP systems to guarantee the efficiency in the transaction processing.
- Getting rid of reliance on the spreadsheets and email for reporting processes and financial planning.
- Streamlining the annual budgeting process.
- Implementing the rolling forecasts to update the budget assumptions periodically.
- Empowering the managers with self-service management reporting
- Automating and accelerating the financial close and reporting
- Shifting time from data gathering to more analysis and supporting the line of business executives.
There is also one aspect about finance transformation that there is no definite recipe for where a company should begin with its finance transformation project. It is all determined on the basis of the goals and objectives of the company where the initial plans are in the first place. The outcome of finance transformation has always been great, it has bestowed customers with huge benefits, enhanced data quality, shorter budgeting, faster reporting, and forecasting cycles, and the superpower to do more work in a lesser time. It also lets finance become a better business partner by offering them better support to the line of business executives.