3 Steps to Profitable Growth Using Financial Management Software

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Finance executives have the opportunity to guide company strategy if they can easily tap into accurate up-to-date financial, project, and operational data. But according to the 2010 Global CFO Study, a large percentage of midmarket CFOs don’t have the time or tools to do it. Financial metrics are often produced manually; finance departments spend over 50 percent of their time on transactional activities, and nearly 60 percent are not satisfied with their financial forecasting and analytical capability.

Efficient information analysis, reporting, and budgeting are critical to business success. ERP financial management software—often including project accounting—can replace slow and cumbersome manual processes and integrate with familiar applications such as Excel. This leads to faster access to critical information and drives efficient operations, intuitive business decisions, and potential for profitable growth. But these don’t happen automatically. The following ongoing activities must be put in place:

  1. Monitor Performance – The right software enables you to track activities and projects. You can drill down as needed as well as gain a big picture view of organizational performance. You can set key performance indicators (KPIs) and be alerted when performance boundaries are crossed.
  2. Analyze Data – Next, you can use information gathered during monitoring to develop forward-thinking knowledge. The right software gives you robust analytic tools to gain insight needed to change the direction of negative trends and capitalize on positive trends.
  3. Plan for the Future – Finally, monitoring and analysis leads to smart planning. The right software helps you compare budgets, forecasts, and plans to actual performance and make appropriate adjustments for the future on the basis of new data and analyses.

To make strategic planning effective and drive growth, an integrated financial management software system is necessary along with a commitment to perform these three activities on an ongoing basis. The right software is the foundation as it provides all employees—from CEOs and CFOs to data entry workers—the information they need, when, where, and how they need it. See full article: Position Your Company for Profitable Growth.

By Synergy Business Solutions, a West Coast Microsoft Dynamics SL ERP Gold Partner.

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