3 Ways An ERP System Improves Financial Efficiency

By the team at Elevate2 | 24 May 2022
6 min read

To be successful in their role a CFO must make the most of an effective ERP system

The role of the Chief Financial Officer (CFO) is subject to great levels of pressure. They hold the top financial position in an organisation. They are responsible and accountable for many activities including tracking cash flow, financial planning and proposing strategic financial directions.

For a CFO to be successful in their position, they need to make the most of efficient tools and software that provides them a complete, visible picture of business-wide data.

CFOs need an effective ERP system

We look at three ways an ERP system improves CFO efficiency in their day-to-day role and helps them make smarter, data-informed strategic decisions.

1.Data-driven planning

To successfully prepare for a company’s long-term financial future, CFOs need to have access to truthful financial data. This should be presented in a consolidated and digestible way, enabling a CFO to financial plan efficiently.

ERP software allows CFOs to access data from all operational areas, across all subsidiaries. This enables better financial forecasting and allows CFOs to make truthful data-driven decisions – no guess work.

2.Visible performance tracking

Every company has pre-defined financial targets and operational KPIs. A CFO is expected to demonstrate how the company is performing against these and if they aren’t, strategically plan how they can get back on track.

An ERP system provides a CFO with complete real-time visibility into a company’s performance, visualising data in a bespoke dashboard for all relevant KPIs. An ERP system gives CFOs the power to perform deep analysis, enabling them to recognise any threats or concerns as early as possible.

3.Traceability and compliance friendly

Another important factor CFOs need to be mindful of is that a company’s financial activities are auditable, traceable and compliance friendly – particularly when there are operations in multiple countries.

In an ERP system, end-to-end processes can be tracked, with 360 data seen in real-time from anywhere. In addition to this having central, easy to access reports will help streamline end-of-period processes and company audits. This gives CFOs confidence that they can find the right answers at the right time, turning audits and other financial processes around quickly and efficiently.

ERPs like NetSuite can support many different currencies and exchange rates as well as including pre-configured tax codes and localised reporting. This makes cross border sales and compliance efficient and less complicated. From a CFO’s perspectives, this can help make a business more scalable and financially stable.

You can read more about how NetSuite helps to answer common compliance challenges here.

Improve financial efficiency with NetSuite

NetSuite is the world’s number one cloud-based ERP, helping thousands of companies across the globe to manage core business processes with a unified, fully integrated system.

NetSuite’s software will help alleviate pressures for CFOs in their daily roles, helping them to work more efficiently and drive growth and positive change within the business.

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