In the current situation, the market can change almost overnight. Even in sectors that have remained stable for some time. In order to face this constant change, it is essential that organizations acquire an agile management model. And that this covers all areas of the organization where there are multiple relationships with clients, suppliers, partners and collaborators and workers. But how can you achieve this agility in financial management?
Agility & Management in the financial sector
Agile financial management involves, firstly, actively listening to people from other departments and different levels of responsibility with which the CFO and their team interact. And with other stakeholders outside the organization. It is vital to obtain this information quickly, to analyze it in depth in real time and to compile reports.
It is absolutely necessary at this time to work with information and simulations that are constantly being updated. If the CFO and the Business Control Director carry out their work of collection, analysis, forecasts and preparation of reports with agility, there will be no delays in the decision-making process.
However, such agility should not diminish the quality of financial information. Even if the CFO presents such information in real time, if it is inconsistent it will not help Management make sound decisions. This could be extremely detrimental to the organization in the current economic situation.
In other words, “providing management with agility” means having reliable information in real time. In this way, the CFO and the Business Control Director can provide this information to the General Management in order to speed up the making of correct decisions, which will allow the company to grow.
Transparency and consistency in the financial information that companies provide to the market is a trend and has become even more important in the critical year of 2020. The ESMA (European Securities and Markets Authority) annual public statement on compliance priorities for financial statements prepared in accordance with IFRS emphasizes the need to ensure transparency and consistency in financial reporting on the effects of COVID-19. In this Statement of October 28, 2020, ESMA also reminds listed companies of its March recommendations on the calculation of expected credit losses and its subsequent May Statement on half-yearly financial reports.
Technology, an ally of agile financial management that generates consistent information
Agile financial and accounting management from data management up to value creation for the organization and decision support has these characteristics:
- Efficient operations
- Transparent and accessible metrics and data
- Frequent monitoring of compliance with objectives
- Quick and responsive adaptation to change
- Multidisciplinary, trained and proactive teams
Using advanced technology financial management software reinforces these aspects. The CFO and their team get complete visibility and control of the information, can work collaboratively and transmit information in real time. This also improves the quality and relevance of analytical results.
With a solution like Talentia Financial Suite, users from the financial department and other areas whose data is integrated into financial reporting, access a single platform. The information is centralized in it, constantly updated and collaborative processes are established. In this way, financial management is streamlined and financial performance management is harmonized:
- Consolidation & Close
- Budgeting, Planning & Forecasting
- Financial Reporting & Compliance
This avoids delays and inconsistencies that may hinder corporate strategy and decision-making.