| CFO’s and their teams aim to standardise | | | | Another problem is accounts receivable may not be |
| transactional processes, deploy efficient financial | | | | synchronised with accounts payable. |
| systems and deliver strong performance from cash | | | | Budgeting and planning processes may be inefficient |
| management to regulatory compliance. | | | | as well. Some organisations find that budgeting and |
| However, a CFO’s role doesn’t stop there. To | | | | planning take too long, however companies often lack |
| turn their company into a successful one and to save | | | | the systems necessary to accelerate the process and |
| their profile, they must focus on strategic financials. | | | | omit to ensure that it is consistent with their |
| They need to provide forward-looking insight that | | | | organisations strategy. |
| enhances strategic planning and decision-making. They | | | | A final part of core financials is compliance. It is |
| must also extend the capabilities of their financial | | | | important to effectively comply with regulatory bodies |
| performance management systems beyond core | | | | such as Sarbox and IFRS for example. |
| activities into new areas, automating more processes | | | | Inability to rise to a strategic level and provide valuable |
| and driving productivity gains still higher. | | | | insight |
| This strategic comprehensive perspective which | | | | It is a challenge to rise to a strategic level within an |
| covers core financials and strategic financials is known | | | | organisation and this is the time where finance can |
| as corporate financial management (CFM). As | | | | provide advice and analysis that can truly differentiate |
| CFO’s focus on addressing their strategic and | | | | a company and generate profitable growth. |
| operational challenges, they will have to invest in CFM | | | | To move finance to a more strategic role CFO’s |
| systems in order to meet their objectives. | | | | will have to identify new areas where processes can |
| This is where a further challenge emerges. Finance | | | | be enhanced and automated and then over-see the |
| Executives must look for and use performance | | | | task. For example, non-standard tasks such as |
| management systems that are: robust, flexible, | | | | recruitment to retirement may be ideal for process |
| integrated, rapidly deployable and cost effective. | | | | improvement. Moreover, finance organisations can |
| During the downturn in the economy and the | | | | increase their strategic value by extending excellence |
| increasingly demanding environment a new set of key | | | | in financial management out to trading partners. |
| challenges for CFO’s has arrived. These include: | | | | Finally, another challenge lies in avoiding systems that |
| Inefficiencies in core financial operations | | | | do not work well together, it is important to use |
| Finance Executives may be struggling with processes | | | | systems that are well integrated with other applications |
| that might be considered core foundational or critical. | | | | in the financial management system. |
| The problem is that the handling of these processes is | | | | These are the risks that CFO’s face as they |
| not efficient or effective. Some of the processes that | | | | contemplate investments in financial systems that will |
| may fall into this category include: procure to pay, | | | | support them as they grow enhance core processes |
| contract to collection, and service to payment. | | | | and seek to elevate their organisations to a strategic |
| Problems may also occur in relation to cash flow | | | | level. In summary, they need to select and deploy |
| management. For example, the accounts receivable | | | | financial systems that are robust, flexible, integrated, |
| process might be poorly designed, systems that should | | | | rapidly deployable and cost effective if they are to |
| be automated are not, which may effect the | | | | meet their overriding objectives. |
| organisations ability to collect cash. | | | | |