How to Successfully Navigate Financial Disruption

June 19, 2023

In these uncertain times, finance leaders are expected to steer companies through disruption, making strategic choices regarding the company’s role in the future financial services ecosystem. Thus, breaking away from traditional business models that are rapidly becoming obsolete is crucial to remaining financially efficient and ensuring that the organization’s strategic goals are met. Below are some business finance tips to successfully navigate disruption

1 Good planning

Under the continued threat of disruption, business financial management strategies should prioritize stability and flexibility. It is about how to act today to prepare for tomorrow. Hence, planning transformation is crucial to foundational change and critical to the decision-making process. What are the musts of financially efficient strategic planning?

  • Assess your company’s current financial condition.
  • Be aware of your company’s stress factors.
  • Anticipate change, upskilling, reskilling and recruiting talent as necessary.
  • Set a portion of the budget aside as a safety cushion for unexpected events.

2 Cash flow and capital management

A company’s ability to manage disruption depends largely on its accounts payable and accounts receivable. The difference between these two figures determines whether the cash flow is sufficient to stay afloat during difficult periods. Thus, a strong backup plan with alternative ways to access working capital plays an essential role in how to manage finances

  • Plan forward and analyze how your balance sheet is going to be structured for the foreseeable future.
  • Design a clear cash flow plan that all teams can follow.
  • Implement connectivity tools such as application programming interfaces (APIs) to easily manage money transactions.

Ensure treasury centralization and modernization, so that the treasurer becomes a cash-management advisor.

3 Intelligent budgets

Redefining the finance operating model involves the introduction of smarter ways of working, together with the use of software solutions for financial management. How can smart budgeting strategies and technologies help?

  • Generation of budget proposals based on findings obtained through the gathering and analysis of historical data.
  • Daily monitoring of your budget and regular reviews to identify flaws and understand where your business stands.
  • Improved budget accuracy and, therefore, enhanced financial efficiency and productivity.

In other words, intelligent budgeting makes the forecasting process more agile and dynamic.

4 Digital transformation  

In addition to sound financial management skills, you should be prepared to speed up your company’s digital transformation and rethink how to do things. Therefore, merely automating existing processes is no longer enough, and it is essential to keep up to date with technology. With the right solution for financial management, you can:

  • Improve forecasting and provide real-time, transparent information to customers, suppliers and employees.
  • Consolidate commercial relationships and collaboration in a secure environment through the use of API platforms.
  • Streamline workflow issues and improve operational efficiency.

Therefore, if you think it is time to review your financial strategies and practices, Talentia Software can help you navigate disruption and gain a competitive advantage while protecting your business.