In a recent study by Tatum, CFOs acknowledged that to reach their career goals they needed to build stronger partnerships with the rest of the C-Suite. FP&A software can be an instrumental tool in strengthening those partnerships through accurate business data, better collaboration and creating competitive advantages.
Accurate Business Data Creates Trust
Financial data is the cornerstone of decision making amongst the C-Suite. Short-term goals, single year plans, and five-year roadmaps all look to an organization’s financial data to provide the information and signals where a company needs to go.
Errors in financial reporting, therefore, can create issues for the organizations and its plans. It is expected that financial data presented by a CFO is accurate, but for companies still relying on spreadsheets, that may not be the case. Mistakes presented to the C-Suite in financials can break down trust, making it harder to foster a peer relationship.
Financial planning and accounting software has data validation and checks built in. There is no concern that a simple error from a copy and paste into a spreadsheet cell has bubbled up to planning meetings. What’s more, CFOs don’t need to direct their staff to spend hours validating financial data to prevent mistakes from reaching the eyes of other C-level executives.
Collaboration Across the C-Suite for Transformation
The Tatum study found that capital investments were a current priority for many organizations, with a heavy emphasis on technology. As digital transformation continues to be the focus of organizations of all sizes, it becomes increasingly important that CFOs and CIOs are in lockstep.
Far beyond an IT buzzword, digital transformation initiatives are holistically about the company, efficiencies, and the ability to address changes in the business environment. Mostly, digital transformation is about company culture, putting IT and finance as leaders to organizational change.
With FP&A software, the C-Suite can create forecasts to understand the impacts of initiatives on the company’s financial performance. As new technologies become available and organizational priorities shift, forecasting and planning become a crucial part of transformation and innovation.
Identifying and Creating Competitive Advantages
Disruption is occurring in every vertical, in every sector. The C-Suite is challenged with being ready to adopt new technologies, add new partners, or be ready for timely and strategic acquisitions.
Data is key to making the right decision in a fast-paced environment. But the right decision doesn’t just rely on past financial data. To be predictive and to steer the organization on the right path, C-level executives must marry past financial performance with a myriad of other data. FP&A software that provides functionality for big data analysis is a critical component to being agile and taking advantage of opportunities when they arise.
Furthermore, financial planning software can allow you to create “what-if” scenarios. Understanding the position a company could be in based on best case, worst case, and anticipated outcomes provide the C-Suite with the data needed to make informed business decisions.
The C-Suite is not a set of siloed areas that happen to work together. They should be a cohesive unit that breaks down walls and collaboratively defines an organization’s path forward. By using FP&A software to illustrate and leverage business data, CFOs can become better aligned with their technology and marketing counterparts, presenting a unified front for company growth.
Small to mid-market organizations rely on Centage Corporation’s Maestro Suite, which includes Budget Maestro™ to help them keep track of and manage their cash flow. Budget Maestro improves the efficiency and effectiveness of business budgeting and planning, financial forecasting, financial consolidation and reporting processes. For more information, take a tour of Budget Maestro, contact Centage, or call 800-366-5111 now.