Chief financial officers (CFOs) are increasingly expected to get involved in a broader range of projects within their organizations, using their skills and experience to help their organizations grow. For finance leaders, this presents a unique challenge as they have to use all the tools at their disposal to make sound decisions based on quantitative evidence.
For CFOs, enterprise resource planning (ERP) systems can have a significant impact. Business operations are already being controlled and enhanced by ERP systems, from small businesses to large enterprises. Despite this, many companies are still hesitant to launch integrated solutions for various reasons, including concerns over implementation, training, and budget constraints.
Therefore, many CFOs are missing out on a range of potential benefits related to efficiency, information accuracy, and cost savings. Finance leaders should consider ERP systems as part of their new year’s resolutions since they can make their jobs easier by enhancing their value.
A CFO’s main concerns are revenue growth, talent shortages, execution, increasing margins, and growing the business.
CFOs seeking to establish a solid foundation for growth can benefit from consolidating financial data, as it can provide a real-time view of key business processes. As the economy recovers, there are opportunities for businesses to expand in multiple sectors, but they must first organize their affairs.
By automating key processes and integrating data from across departments, ERP solutions deliver value to organizations. For example, by removing the need to process invoices and orders manually, ERP frees the finance team to focus on other tasks that add value to the organization.
ERP provides CFOs with the ability to gain real-time insight into the dynamics of the finance function and the rest of the business. As a result, income and expenditure can be better managed, orders can be tracked, and stock levels can be controlled more efficiently. Having a clear view of what comes into and what leaves the business allows the finance chief to plan and forecast appropriately.
An ERP solution should provide CFOs access to all relevant information in one location. Finance chiefs need multiple variables to make decisions—each impacted by the others. Data in a silo is of little value. Using an ERP system ensures the proper consideration of all relevant factors by centralizing data.
These solutions can also flag anomalies, which ensures information accuracy. In the context of cash management, this is key, especially since the CFO is likely to have responsibility for large budgets. In large-scale decision-making, errors in data can prove to be extremely costly, even when they are minor.
CFOs can identify potential efficiencies through ERP systems, which help them reduce costs across organizations. Integration of data can also eliminate redundant systems and processes. Thus, they are no longer needed, preserving valuable budgetary resources.
The same principles apply to on-premises ERP, SaaS, and cloud-based solutions. Sage 100 ERP software improves the efficiency of data collection, management, and analysis, allowing it to be used in boardrooms to assist with decision-making.
With the economy in recovery mode, it is only natural for the CFO to hold a key position in the company’s top management. Companies are keeping a closer eye on the bottom line now that many have run into trouble over the last few years.
A CFO should be able to contribute to the discussion based on an understanding of both the finance function and the organization as a whole. CFOs who use ERP systems can make confident decisions, ensuring they have courage in their convictions when making crucial decisions.