Many view the finance department as the lone wolf of the company. While the finance department has to collaborate with other departments to determine the future investment and analyze the past mistakes on it, not many companies understand the importance of flawless communication.
Lack of financial tools and depending more on manual processes to deal with the invoice creation, general ledger, analyze accounts payable and accounts receivables and other financial processes can lead to distractions.
Attending the annual budgeting event isn’t a simple task. Many teams come up with high budget and vice versa. Sorting out that perfect number isn’t a small deal. Many teams forget what happened in the event, since it happens once in a year. This is still the sad state of finance in a digital world across many organizations.
When you begin hunting for ways to address all these threats, you can’t ignore the advantage posed by a modern ERP system to propagate digital transformation in financial services.
Many businesses have tasted success, thanks to their organic acquisitions and investments via multiple digital technologies. The major expectation of any executives to utilize these technologies would be to deliver the right customer service, reduce costs as well as increase their revenue with finance transformation strategy.
It is crucial for industries such as EC&O to involve the best finance transformation strategy in the market. Lack of transparency on financial operations can even pull EC&O industry down.
A few businesses have history of failed endeavours owing to their poor strategy of mistaking digital as another incremental innovation whereas it is an architectural innovation, that is applicable when a product would modify the way various system components would link to each other with regards to finance strategy and transformation.
A study by Gartner states that 85% of finance teams are currently moving on with their plans to involve finance transformation. But 70% of those finance transformation initiatives are not delivering the desired results.
To drift apart from this doom, it’s time for businesses to involve finance transformation as a service with proper digital finance technology, digital financial management and finance function strategy with the right ERP partner.e
Finance transformation is known as the strategic initiatives you use to reenvision all the finance function of your business. You can use it to align with your company’s overall strategy. All these changes are going to revolutionize how your organization would manage all its financial function as well as the associated processes. You can also handle all the financial reports and internal controls.
Do you know that Sprints have the ability to simplify the organizational processes. You can adjust all your action plans and budgets as soon as the business conditions change. You also get to work with an entrepreneurial mind-set. You can ask all your finance leaders to perform the role of coaches. You can extend your range of focus while serving as proactive counselors to all the business units.
Finance transformation can directly mean the strategic initiatives that aims to re-envision the finance function while aligning the company strategy. It could mean restructuring as well as implementing finance operating model and accounting mapped to an ERP system and following best practices in the industry.
This also matches along with the financial capabilities of your organization with accounting and finance processes; as well as re-platforming your finance and accounting systems.
All these changes have the right hand in streamlining the internal controls, financial reporting and function. It is also the process where you would aim single-mindedly for finance efficiency. You would go on to solve all the critical issues in the finance in a digital world.
The prequel of finance transformation saw the role of Chief Financial Officer (CFO) confined to charting every company’s journey with traditional finance function strategy in place. Every CFO digital transformation processes have been handled well. They need an ERP system to look beyond the shores of financial planning and analysis.
With disruption overtaking traditional industry practices, riding out of automation and innovation would lead to disaster in the future. Hence a modern CFO has to move away from accounting to propogating strategic leadership practices to accelerate their shareholder value with the help of digital financial reporting and digital transformation in accounting and finance.
There is a recent study stating that a CFO has all the capabilities to lead the changing business atmosphere. They should look beyond their narrow options and create an agile, business centric finance decisions.
You also have the responsibility to ensure data security from phishing, hacking and outside breaches by inculcating digital transformation in financial services.
With technologies such as robotic process automation (RPA) in the domain of intelligent automation has led to an undeniable finance organization impact. You can reduce costs, cut redundant tasks and free your employees to perform more strategic tasks with the right finance digital transformation roadmap.
As a CFO, finance transformation in your company can happen if you follow these 6 steps:
Kelly Battles, CFO of Quora, believes that the future of IT lies in the hands of the CFOs. She states that the CEOs would live in the future while focusing on the product growth, strategy and vision. The COO would be focusing on the daily tactics to get the job done. The CFO would balance these roles while carrying out his responsibilities efficiently.
Every CFO should focus on taking up cross-functional roles without any hesitation. They should make the best out of the data available to them, in the way taking care of the privacy needs of a business.
The future is bright if you are clamoring in the market with finance transformation. These practices are going to mark a new era in the market.
With all the latest innovations taking place in the industry, you are going to lead whichever market and industry you have set forth your feet on when you enable the best finance transformation framework.
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With the CFOs gearing forward to face the unique set of challenges, they need to get charged up with technologies such as AI, Automation, bots and much more. An embedded controls framework can act as a supporting pillar. SAP technology acts as a pioneer in digital finance transformation with technologies such as SAP S/4HANA Cloud, SAP Central Finance, SAP Analytics Cloud with planning and consolidation features.
When you choose SAP S/4HANA Cloud, you are adopting a solution to govern your finance department on a 360-degree basis.
With SAP Central Finance, manage your invoice, account payables and account receivables, budget and investments.
At iQuantM, we can understand your business requirements and support you with the right set of SAP solutions. Our set of experts can identify which solution would match your business with years of experience in SAP consultancy and services along with offering the best best finance transformation framework.
Our experts can help you round the clock and ensure that you lead the market with the right tools and strategies in place.
Looking for the best SAP partner in UK to deal with SAP Finance transformation? Contact iQuantM.
SAP technology has played a paramount role in digital finance transformation with solutions such as S/4HANA, Central Finance, Cloud, Analytics, Consolidation and Planning. Businesses can access their finance data from anywhere, at anytime without any prolonged, annual meetings.
Involving the right cloud ERP technology can help you transform the finance department. Other generic processes include:
Getting the right team involved
Identifying your business drivers
Define your performance management process
Communicating with your team
Taking up more phased approach
Businesses can make the maximum out of finance department with the right Cloud ERP system such as S/4HANA Cloud.
Finance transformation is the way we describe all the strategic initiatives to remodel the finance function while aligning your company strategy. All these changes play a key role in
revolutionizing the way you control the financial function along with the associated
processes, financial reporting and internal controls.
We can term digital finance transormation as the financial management relying upon
innovative technology in digital landscape. With efficient execution, you can take your business to new heights.
The role of finance transformation consultant would be to reefine as well as implement all their
finance targets, processes and systems within their company. They should possess the best
communication and analytical skills with proven expertise in financial operations.
SAP technology is one among the topmost digital finance transformation solutions coming up with a range of platforms such as Central Finance, S/4HANA, Analytics, Cloud, Planning and Consolidation. Every business can access all their finance data with no extended annual meetings.
The major difference is that SAP S/4HANA belongs to the technical module whereas SAP FICO belongs to the functional Module where you can manage financial and costing variants since SAP S/4HANA is a Reporting tool.
SAP Central Finance is nothing but a platform built on the basis of SAP S/4HANA. You get access to a centralized financial system. You can transfer data from different heterogeneous SAP and non-SAP ERP systems using various data structures.
SAP Simple Finance consists of a few add-on features based on EHP 7. On the other hand, SAP S/4HANA is a full package of Finance Business solutions.
With the decrease in supply chain movements, every industry is heading down the revenue path for the year 2020. This COVID-19 has caused a huge impact on production, logistics and delivery of goods in the far-reaching ends of every company. This situation calls for a cloud-based digitization to take account and keep track of the SCM related activities. Post this pandemic, the world will require a digitalised channel to help in faster decision-making – which is possible only with accurate analytical data.