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6 reasons it’s difficult for CFOs to get a 360-degree view of the business

3rd Apr 2018
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The Access Group provides integrated business management software.

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Every CFO dreams of being able to understand exactly what’s going on in the business at any given point, to see the bigger picture with total clarity. It’s like the Holy Grail, only making it a reality seems so far removed. So, what’s getting in the way – here are the 6 reasons that could be holding you and your finance team back:

  1. Your data is kept in silos either on disparate systems, spreadsheets or even worse, on paper or in someone’s head! Even in organisations where departments have technology in place – such as CRM, HR, project costing and expenses –  it’s often not integrated into finance to provide one version of ‘the truth’.
     
  2. Without the technology or the mechanisms in place to encourage collaboration across the business, it’s a long drawn out process to collate information that’s out there. It’s certainly not something that can be done with the click of a button. This means that the business could be missing out on key intelligence that could help the business make better decisions.
     
  3. On the other hand, disparate information is ripe for errors and omissions because formulas in spreadsheet ‘break’ or the information is in some way incomplete. This means that even if you do eventually get access to the data you need, you’re never sure just how accurate it really is.
     
  4. The lack of collaboration tools makes it difficult for the finance team to work closely and more effectively with colleagues in other departments so data isn’t shared or valued. When people don’t understand their part or why working closely with the finance team is of benefit to them too, it’s difficult to get people onside to pool the data necessary to complete the business narrative.
     
  5. Reporting is incomplete, not showing a true picture. It often only shows the perspective of one department or one sub-section of the business with no understanding of how this fits into the whole. For instance, reports many not account for certain financial commitments that the business has taken, making the picture skewed. This can lead to actions being taken that might not otherwise occur if everyone had a complete view of the business.

 

  1. It’s difficult for the CFO and the Board – as well as everyone else across the business – to make insightful decisions because they only see one piece of the jigsaw, namely the bit that they’re working on. This disconnect makes it impossible to get the full value from the data held within the business – sometimes complex data – and pull it together in a way that the business can make decisions with confidence.

It’s often because the business is disjointed in this manner that it falls back on analysing historical data and in producing static reports. When parts of the puzzle are missing, it’s impossible to understand with any clarity where the business is doing really well and what’s holding the business back, as well as understanding where opportunities lie to drive the business forward. Planning for the future and making decisions in these situations can often lead to mediocre results at best.

This blog is part of the whitepaper:  ‘The connected finance team – bringing your people, data and technology together to deliver world class performance. Download your copy for free here.

https://www.accountingweb.co.uk/resources/exclusive-guide-the-connected-finance-team 

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