Seeing Further and Wider
Modernizing your Digital Finance Strategy
The expectation of financial prudence and stewardship of financial assets is one of the shared constants across all businesses. As digital sophistication has increased in recent years, so have demands to modernize the platforms used to monitor and manage information — and not everyone is equally equipped to adapt.
A digital finance strategy built around cloud-based financial management tools can be the great equalizer. Cloud-based tools offer scalable and a-la-carte services that can fit either a company with a dedicated finance team or a forward-thinking owner-managed business looking to make its first digital move.
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- Cloud-based financial management technologies can help businesses of all types and sizes make informed financial decisions.
- Digital finance investments are scalable and customizable to suit any business’ unique needs, strategies and desired outcomes.
- Shifting to a digital focus empowers businesses to be more agile, tactful and responsive to change.
Drop me a line anytime to learn more about MNP's Digital Finance Practice.
What is your digital finance strategy?
Client engagement is interactive. Responsive financial and business models are important for optimizing the value of your assets, supporting your growth, profit and sustainability and maximizing internal engagement. And a robust digital finance model can be one of the most powerful devices in your company’s tool belt to help evaluate the effects of market volatility.
An Integrated Business Strategy Starts with
a Digital Finance Strategy
Steps you can take to evaluate and strengthen your digital finance model include:
1. Identify the backbone of your financial management operating system. If you’re just getting started as an owner-managed business, consider investing in an entry-level general ledger (GL) system to track engagement or augment your existing model. Also, look at outsourcing services to better manage your books and leverage the growing marketplace of applications that can reduce the burden on manual processes. If you’re a larger business with a dedicated finance team, standardizing on a more robust enterprise resource planning (ERP) system — combining financial and operational data into one core platform — may be an effective next step.
2. Use financial and operational models for effective scenario planning. If you’re still using spreadsheets to run your business, a dedicated financial planning and analysis (FP&A) platform would complement your ERP by integrating transactional details into the strategy and operating plan.
3. Build adaptability and transferability to finance as a partner to other departments.
4. Make organizational agility and insightful financial analysis possible across all departments.
5. Support efficient financial process automation and critical performance management capabilities.
6. Understand digital transformation isn’t always about change, but improvement.
Make Better Predictions
Your continued success and sustainability depend on your ability to forecast revenue and operating expenses. However, this can be tricky without historical data from current investments or markets to understand the likelihood of future ones. It’s even more difficult if you’re conducting this scenario planning manually via spreadsheets.
Business analytics such as FP&A technology, in conjunction with industry-specific ERP systems, has become increasingly popular for combining financial and operational data in a centralized framework. This strategy allows for automatic data collection to track and analyze financial and operational information, resulting in:
• More accurate business planning, budgeting, forecasting and scenario planning
• More predictable revenue and expense management
• Increased operating margins and organizational flexibility
• Better communication and buy-in between groups (e.g., internal, board, tenants)
• All-in-one consolidation and reporting capabilities
• Overall more effective financial management
Beyond the Balance Sheet
Business leaders often rely on finance to provide the right information in real-time to help make informed decisions and drive operational effectiveness. By leveraging data from your existing ERP and transforming it into actionable insight through FP&A technology, your business models can support your ongoing and future success with better collaboration, company-wide standardization and visibility at a more granular level.
The need for all businesses to plan and revise budgets is critical — especially when it comes to protecting investments, understanding costs and knowing the effects of what future winds of change can bring. With an integrated planning approach, driven by a holistic digital finance strategy, you can benefit from better insights, increased performance and added agility.
Business of all sizes can look to cloud-based financial management technologies as a change enabler and harness their digital finance strategy to translate strategic planning into tactful execution that drives financial results.