Digital transformation of your organization is imperative now more than ever as the business climate changes completely. As the Chief Financial Officer (CFO), while your primary role and functions remain the same, the strategic changes in business processes have added new parameters for these functions.
The role of a CFO spans a lot of different areas, from financial management to cost rationalization and growth opportunities. CFOs are increasingly doing more than just financing. They’re using their strategic knowledge to help grow companies. This means that finance leaders need to use all the tools at their disposal to make sound decisions.
Many small to large businesses rely on ERPs to gain insight and exercise control over business operations. Investing in ERP systems can make a big difference for CFOs as better CFO-ERP alignment can increase CFO efficiency and business agility. Additionally, CFO’s can get achieve efficiency, cost benefits and information accuracy through ERP systems.
Here is a lowdown on how ERP solutions can benefits CFO’s
- Data-driven decision-making: One of the major responsibilities of a CFO is to plan financial future of the company. This includes loans, cash-management, debt, restructuring etc. A well-designed ERP software will enable data from all operational areas which thus enables better planning of finances.
- Comprehensive financial management: One of the core processes of ERP solutions is comprehensive accounting and financial management. As the CFO, you are responsible for all the accounting and financial reporting and an ERP solution will offer you a 360-degree view of the finances. Additionally, other vital data is also integrated into the workflow by ERP systems for a complete view of the business and its financial standings. For example, you can now simultaneously view cash flows, invoicing and procurement. Other operational factors that affect the company are also integrated for better clarity and action.
- Performance tracking: Modern ERP systems are equipped cutting edge technology which provides complete visibility to company’s performance within the defined KPI’s. This helps CFOs to access historical data and use predictive analysis to take the right measures which would help to avoid any challenges. Decision-making abilities of CFOs is further enhanced using operational insights offered by the ERP system.
- Compliance and Taxation: The set of tools offered by ERP solutions help to easily manage compliance and taxes thanks to their in-depth reporting. These tools also enable the CFO to make necessary recommendations.
- A complete overview of data: Lastly, and very importantly, ERP systems offer a complete 360 degree, unified view of the financial data and other issues which may impact the financial condition of the company. This consolidated perspective can help CFOs in identifying the problems, comparing the relationship between different variables and make decisions accordingly.
In any company, CFOs need to ensure that they have a clear understanding of the financial condition of the company. Additionally, as enumerated above, a modern ERP system can be a great tool for CFOs to make necessary decisions that will impact the company’s standing. At Rockford Computers we understand the need for a well-designed and impactful ERP system that will support the CFO in executing their duties. Contact us for more information on identifying which ERP system would suit your company requirements.