Finance departments spend a lot of time creating annual budgets, which lack a dynamic approach and become obsolete after a quarter or two. This creates a need for a change from the annual planning model to quarterly, in which data is better aligned with a changing environment. However, the more frequent budget planning is, the more internal resources and time have to be spent doing it, which puts an extra strain on staff.
If accountants and other financial staff are able to speed up past-looking operations, they can free up time to focus on more important business-related tasks. In fact, many CFOs highlight the importance of finding balance between accurately reporting on past financial performance and delivering predictive, insightful forecast. A focus on delivering historical financial statements will satisfy government bodies and investors, but these statements would be of little value for company executives trying to make real-time, actionable management decisions to improve a company’s performance.
What could be a potential solution to solve this problem?
- One could increase the number of internal staff in a company’s finance department or use the help of temporary workers to augment full-time workers during peak work periods. There are companies that do that and it works for them; however, this approach requires extra spending due to a payroll increase.
- The second option is the recruitment of skilled third-party consultants, who can bring specific high-level finance expertise and technological innovations to improve existing processes.
Upon the completion of a consultative contract and integration of proposed solutions, a client company will keep all the working tools and expertise, which means they would be used in the future without extra cost. The help of external consultants will require spending the money once upfront rather than hiring extra staff every time there is a workload increase.
Out of these two options, inviting highly-skilled professionals, who can bring your company’s performance to the next level by embracing latest developments in business intelligence and turning to data-driven reporting, is certainly a more effective long-term strategy.
How can we help?
If your company is looking to speed up budgeting processes and improve reporting, please feel free to get in touch with us at email@example.com. Within the first week, our experts will analyze challenges your company is facing and propose a number of working solutions that would cater to your specific needs.
Centida is one of a very few specialized niche firms that follow the principle of “from finance practitioners to finance practitioners.” Our advisory services focus on the improvement of operational, day-to-day activities in finance and controlling departments. Centida consultants are not simply IT-specialists, but successfully combine the science of BI with the art of finance.