After talking with CFOs and controllers at local networking groups, we found that a majority of the issues encountered by the finance team relate to business management software inefficiencies. Using old or out of date software platforms for enterprise resource management results in outdated information and completely depletes the accuracy of their financial reports. That’s why it usually takes the finance team to convince other executives to upgrade the systems that the business is running. When controllers run into the following issues, it may be time for a change.
First and foremost, your business management software needs to present accurate and current information. Older platforms are often localized, meaning vital company data is stored on-site and other locations won’t be synced with the same information. These information silos are the main cause of inaccurate financial reporting.
When trying to manage budgets, controllers should demand aligned systems so that there is no overlap or gaps in data. Due to business expansion and growth, many modern finance teams have implemented cloud-based business management software. Cloud-based facilitates a dynamic data system that is accessed by all aspects of the company and allows for real-time updates.
Inability To Track External Components
Another common bottleneck for controllers is the inability to easily access information from external departments or international subsidies. Older ERP platforms often lack the ability to easily bring outside and international aspects together. But today’s controllers need the ability to trace supply chains, outsourced parts, and various components to create cost analysis and operational reports. With today’s advanced enterprise resource management software, controllers can use a single system to manage multi-currencies and different languages so no matter what subsidiary or location the reports are run from, all information will be included or converted properly, in real-time.
Account Billing and Payable Errors
Another flaw of older, fragmented finance platforms is billing and accounts payable complexities. This is due to billing and payments being handled on a location level. For example, if an order isn’t paid for it can easily be lost if no one follows up on it. Depending on your company’s size it is not feasible to have every bill being watched over for payment. Finance teams should demand a centralized system to easily track payments and A/P. You don’t want the overall company budget to lack the ability to trace its revenue streams. Platforms such as NetSuite help centralize billing data on one system.
Financial reports can be time-consuming. They can range from quarterly reports to a yearly review. For these reports to carry any weight and your future forecasts to be accurate, they require that all pertinent information is included. Older software platforms can result in data being lost or simply overlooked due to being in a different system. A completely aligned system would be a great solution for those suffering from disparate systems.
It is apparent that updating the financial systems your business uses can better align departments and help all departments become more efficient and more in-tune with accurate financial information. It is up to the financial team to get the conversation started with other executive team members on updating business management software. Modern software will help align departments in real time, automate financial management processes, and enable accurate, all-encompassing financial reports.
See how NetSuite can help you overcome these common financial roadblocks.