Accounting and reporting are important functions of any company's finances. But with the advent of technological advancements, many organizations have shifted from accounting-driven models to planning-driven ones.
Financial forecasting allows business leaders to form more informed strategic plans. With SAP HANA platforms and others, it's easier than ever to move toward a planning-driven model. Doing so allows you to focus less on accounting and more on preparing for the future.
For example, the State of Credit Union Marketing says that insufficient budgets and a lack of resources are putting a strain on financial marketers who are trying to adapt to the digital age. And according to Eccho, an online finance resource, inadequate cash flow or high cash use is a top reason that companies large and small are forced to close their doors. In fact, 44 percent of failed businesses named it as the primary reason.
Such statistics demonstrate why financial planning is crucial for enterprises across all industries and of all sizes. Having a plan for your business' cash management and expenditures can help guide day-to-day decision making and identify opportunities for future investments. The best way to make smart financial decisions that align with your overall business objectives is to follow a well-designed plan.
It's easy to see how traditional accounting processes can bog down an organization. According to an APQC AR Benchmarking Survey of 154 accounts receivable professionals, many companies are still sending invoices via snail mail, email, and even fax machines. These outdated methods for performing financial functions are eating away at companies' resources and growth potential.
Digitizing financial processes makes planning much easier. Technology tools can alleviate some of the accounting burdens you're currently facing. Moving your finances to a digital platform can allow you to automate current process, whether you’re sending invoices or creating reports. Workflow automation is invaluable in helping you deliver improved productivity by freeing up time and resources. With one platform for business needs, your organization can put more effort into high-priority functions, giving you more opportunity to develop your own loyal social enterprise or improve employee and customer communication.
If you're interested in learning how to move your financial operations to a digital platform but you aren’t sure where to begin, consider enlisting the help of a digital business transformation consultant who specializes in facilitating digital transformations so that your stakeholders can benefit from a simplified learning process. A consultant will start by evaluating your current processes, completing a case study to identify what's working and what isn’t. From there, he or she will match you with solutions to your challenges and enable you to focus more on budgeting and planning for your company's future.
With a solid financial plan that forecasts expenses, income, and other cash-flow elements, your organization will be able to operate more efficiently today and be ready to invest in new innovations tomorrow.
To learn more about how your company can facilitate a digital transformation, visit visiontreeventures.com.