The international crisis may historically change the business management model and the vision of the future. An exercise full of challenges for financial management that calls for such a long-term vision now begins. In order to make strategic decisions, it is necessary to analyze the business situation and monitor budgets based on consistent financial information.
Furthermore, the crisis has added complexity to financial management. This is shown in the global study by The Institute of Management Accountants (IMA) about the impact of the pandemic on the Finance Function. Companies surveyed spend more and more time mainly on risk management (43.7%) and cash management/cash forecasting (40%). The CFO and Risk Manager are assuming a more strategic role.
To align with strategy, improve results and successfully manage complexity, the CFO will have to ” rethink ” the Finance Function by asking the right questions about:
- Financial strategy
- Compliance with tax/accounting obligations
- Cash management
- Credits to clients and payments to suppliers, etc.
It will also assess whether the department’s profiles are optimized or need to incorporate new roles.
Reorganizing teams for financial management success
In addition to the Treasurer and their team, who guarantee the cash, the Financial Department will integrate Data Analyst profiles to obtain real time qualitative information. Thus, from FP&A they will be able to analyze the results and prepare projections aligned with the strategic objectives. Likewise, the Controller will not limit their role to financial risk management but will participate in the competitive environment analysis and trends identification and in company’s crises management.
The role of the Chief Revenue Officer (CRO) is also reassessed. The CRO oversees the strategy to generate long-term profitable income, i.e. for sustainable growth. They align it with business development operations ; sales and marketing. Optimizing marketing and customer services , and coordinating sales teams.
Technologies to integrate financial management with strategy
By using a CPM (Corporate Performance Management) solution, CFOs will be able to accelerate and centralize financial management. They also will be able to easily monitor KPIs in order to optimize financial and operational performance. What’s more, they can simplify and accelerate budget creation through collaborative processes, forecast and plan aligned with company’s strategy.
CPM solutions integrate information within a single platform to facilitate objectives and action plans’ accomplishment. It also shows the potential risks business faces.
Talentia CPM is one of these solutions. You can manage in the same platform, business analysis, real-time financial reports, budgets and forecasts to optimize corporate financial management, consolidation and close.
The CFO and CRO can rely on the financial intelligence delivered by Talentia CPM and Finance to manage business performance, revenues, debt recovery and third-party business relationships. In addition to preparing reports on audit and accounting control and performing business analysis with specific KPIs.
In conclusion, a CPM solution improves financial management efficiency and finance team productivity.
Do you have the best tools and team to obtain mandatory reliable financial information to take the right decisions?