modernizing finance: why the time is now and how finance can get there
TRANSCRIPT
Modernizing Finance: Why the time is now and how Finance can get there
The “asks” being made of Finance are growing in number and complexity
Organizations need Finance to provide financial insights, forecasts and other information to understand the impact of different financial scenarios in a volatile business environment.
But many Finance teams don’t have the time or ability to offer insights
Finance is constrained by outdated software tools, incongruent processes, and a lack of automated controls for the reliability of information that results in a lot of manual workaround and wasted time.
Finance needs to modernize – and the time is now
Digital technologies that have radically redefined many industries and long-standing business models also present new cost-effective opportunities to enhance Finance’s capabilities.
Determine a vision for Finance
Understand the gap between where Finance is today and the vision
Develop and implement a strategy to close the gap
Organizations are looking to their CFOs to modernize Finance. To do so, CFOs need to:
CFOs need to take charge of and manage the change
Determining a vision for Finance
CFOs need to clearly set out the role Finance will play in the future, and in particular how it will contribute to helping achieve the organization’s strategic objectives.
Understanding the gap between where Finance is today and the vision
CFOs need to understand Finance’s current capabilities and determine where it needs to change in order to realize its future vision.
Developing and implementing a strategy to close the gap
CFOs need a plan that moves Finance from its current role to its future one, which will often require building capabilities in three key areas: finance insights, financial close and forecasting.
Leading CFOs and Finance teams are already taking steps to achieve their vision
They’re focusing on the three areas that cause many of the gaps between Finance’s current capabilities and what Finance needs to achieve in future.
Converting data into meaningful, easy to understand finance insights1
Finance teams are replacing Excel-based analysis with more efficient, flexible and powerful means of analyzing key data assets. They’re now using data visualization solutions to display information in a visual format, which increases the consumption of key information and streamlines the supporting processes.
Effective processes and dashboards with the right controls will give Finance the ability to track and communicate these metrics and give stakeholders the ability to get under the surface of the reported data to understand the “why” and not just the “what” and gives Finance the opportunity to help better define and report corporate performance.
Converting data into meaningful, easy to understand finance insights1
The financial close is one of the most time consuming tasks for Finance. It is an endless treadmill; as soon as one period is closed, work begins immediately on the next. The solution isn’t just better technology – it’s also addressing the people and process issues.
2 Improving the speed and efficiency of the financial close process
Leading CFOs are taking a holistic approach to improve the close. By ensuring that people better understand the interdependencies of the process, reprioritizing workloads, and documenting it in a detailed close calendar that sets out clear responsibilities and accountabilities.
2 Improving the speed and efficiency of the financial close process
To improve their forecasting capabilities, Finance is moving to the cloud. Although just 11 percent have already implemented either an on-premise or cloud-based automated forecasting tool, 43 percent plan to do so within five years.
Providing forecasts and other forward-looking management information to the organization3
Automated forecasting tools give Finance better control of the forecasting process and integration with legacy financial systems. Forecasts are done by each department and rolled up into an organization-wide forecast presented as dashboards and reports.
Providing forecasts and other forward-looking management information to the organization3
For Finance, the status quo is no longer an option
With the “asks” of Finance growing quickly and in greater complexity, Finance needs to modernize if it is to meet the organization’s expectations. Most teams have just a four to five year window to do so.
Finance teams will need to introduce efficiencies, standards and automation in order to free up greater time to devote to more strategic, higher value activities.
For Finance, the status quo is no longer an option
Leading Finance teams are developing roadmaps with specific actions that will move them from where they are today to where they need to be in 2020. Their plans are flexible so they can adapt and adjust when necessary.
For Finance, the status quo is no longer an option
The future of Finance
By upping their game, better aligning activities to the needs of stakeholders and communicating in the language of the business, Finance is modernizing to become an even more highly-valued strategic partner in the organization.
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NationalMichael GoodfellowPartner, Audit [email protected]
Mark WaylandPartner, Audit [email protected]
British Columbia Kari LockhartPartner, Audit Advisory [email protected]
Greg Fok Senior Manager, Audit Advisory 604-640-4971 [email protected]
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PJ BarclaySenior Manager,Audit [email protected]
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Jason TreloarSenior Manager, Audit Advisory [email protected]
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QuebecMartin CastonguayPartner, Audit Advisory [email protected]
Anne-Marie SicardPartner, Audit [email protected]
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Éric Grondin Partner, Audit [email protected]
Jonathan BanfordPartner, Audit Advisory [email protected]
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