Finance Transformation Rationale
By: Ciopages Staff Writer
Updated on: Feb 25, 2023
Accounting and Finance Transformation Rationale
What factors and facts are the basis for the finance transformation rationale? What will necessitate a systems replacement and process re-engineering? Finance and Accounting function is a cornerstone of your business operations. How do you know if and when it is time for a Finance and Accounting transformation? Here are a few drivers for any enterprise to consider to help make a restructuring and transformation decision of the finance and accounting function.
- Your strategy and decisions are not driven by timely finance and accounting data
- Can’t measure or fathom the synergies from the recent mergers/acquisitions
- Don’t know how much cash is there or there is not an effective way to harness cash
- Budgeting is based on anything but facts and data
- Forecasting is based on hunches
- Cost of managing the finance function far exceeds the value
- Navigating the multiple GAAP reporting mazes is impossible
- The finance function is replete with non-standard and ad hoc reporting
- Internal controls are either lax or cumbersome and complicated
- Various accounting and finance systems. No exact golden copy.
- Convoluted processes that take an army of consultants/contractors to fulfill
- Cost of compliance and violations of regulations galore
- Effort and Cost of finance and accounting systems maintenance is spiraling out of control
- Spreadsheet and Access databases galore
- Finance function feels like a recorder of what happened in the past, not an influencer of what to come next.
Do you have any other accounting and finance transformation rationale to share? If your company is embarking on a big finance project, please consider CIOPages.com Finance Transformation Toolkit. And if you need help in customizing the deliverables or other advisory/consulting, please contact CIOPages.