The sharing of information not only drives business but society as a whole. And much like in life, business communication can be difficult, burdensome, and ineffective. However, without good communication, your business will never reach its true potential. Various reports conclude that due to increased responsibilities, it is more difficult than ever for CFOs to effectively communicate critical information to investors, analysts, and employees. This is an imperative task yet burdensome to many CFOs.
The breakdown of communication in the business world is often founded on two things: time and the availability of information. There is no greater frustration for an employee or management team than getting information too late or not knowing the status of the company they work for. Investors may want to invest in your company but are unable to receive accurate or timely financial reports. In this article, we will be looking at how CFOs can set the standard for better communication—both internally and externally—using ERP software.
ERP platforms like NetSuite allow employees in locations around the world to access and update the same data pool, in real-time. That means nobody is working off of outdated information or lacking valuable data. Legacy ERP software platforms are often localized and only keep records on-premises. Information silos are simply bad news and result in failed communication more times than not.
Using a cloud-based ERP system like NetSuite, CFOs can mitigate the hassle of communicating financial reports to the management team via automated reports using real-time and integrated data from across the organization.
Communicating Value to Investors & Analysts
As a CFO, it is easy to get distracted from communicating with investors and partners when you have to dig through various systems and rely on clunky Excel spreadsheets to gather numbers and produce reports. Bad data leads to inaccurate business forecasting which can have negative impacts on your external partnerships. That’s why modern CFOs have been turning to cloud-based ERP systems to automate financial management, inventory, sales, marketing expenses, and more. By integrating all business data, CFOs only need to use one system to generate real-time reports and convey accurate financial status to upper management, investors, and analysts.
It shouldn’t come as a surprise that meeting compliance requirements may be one of the most important responsibilities of a CFO and their team. In fact, CEOs and CFOs can be held criminally liable for signing off on SEC filings that are misleading or false. That’s why many CFOs have adopted enterprise solutions to ensure financial accuracy for the entire office. Using NetSuite helps keep you informed about what you put your name on, what your employees are doing, and ensures a single version of the truth.
Communication failures are never planned. They occur due to breakdowns in the ability to share and access information. If your ERP software doesn’t have the ability to convey stats company-wide and post in real-time, communication will break down naturally. That is why cloud-based ERP is a necessity in the modern day market space. It brings data and communication together for several different facets of the company. Business management platforms like NetSuite are further advancing the information and reports that are available for CFOs and controllers.