Before we dig deep into how one can actually make a difference in finance transformation, do you really know what it is all about? Well, Finance transformation is basically a set of offerings that aims at helping finance executives in assessing their overall finance vision and strategy and helps them to design as well as implement changes into their process, finance organization, and systems to improve overall finance value.
The major definition in market is notion of the finance which moves from the backward-looking scorekeeper to the forward looking business partner. Getting finance transformation needs changes in the processes, people, as well as technology for supporting those processes. Each of the company’s requirements is unique. However, there are some general steps that can be taken so that the company moves forward in terms of finance. Read on and get to know about them!
Step by Step plan
There are infinite opportunities to focus. The first step here is to decide what exactly you desire to achieve. Without accurate articulated intent, the companies will either collect an ample of information or just not enough! In either of the case, you might fail to find insights that you need.
The next step is to assess demand in your organization. It makes no sense to generate analytics that no one requires. Similarly, you even require identifying current supply of the data analysis so that you duplication of the existing processes is eliminated. The actual gap between demand and supply of the analytics is the real area to target.
That will likely be categorized into three different opportunities. They are as follows.
- Critical analytics which aren’t supplied currently
- Needed analytics but not current supplied
- Existing analytics requiring refurbishing
By identifying the above mentioned opportunities, you can start with your project. As you further progress, examine your learning and change the course according to it.
Top Tenets of the Transformational Finance Organizations
- Eliminate reliance on the spreadsheets as well as email for the reporting processes and financial planning
- Standardize the ERP systems to ensure proper efficiency in the transaction processing.
- Streamline annual budgeting process
- Automate financial close as well as reporting
- Empower the managers with the self service management reporting
Throughout the entire process, ensure that you are taking proper actions on data that you produce. Anything produced that doesn’t result into action is considered to be wasted.