Building Resilience-The Shift Towards a Dynamic Finance Function

In recent years, CFOs (Chief Financial Officers) have been working hard to reduce risks in their businesses. However, unexpected events have shown that there might be a better way. To handle unforeseen challenges, companies need to be more flexible and adaptable. Being able to adjust to changes quickly can set one finance team apart from another.

Now, the idea of creating a dynamic finance function is becoming important. Various factors, like technological advancements and higher expectations from top management, have made it possible. CFOs are facing challenges from different directions, such as the pandemic and changes in the job market. Internal needs are also pushing companies to change their business models, enter new markets, or make acquisitions.

Making the finance function quick, strong, and adaptable can turn it into a competitive advantage. A flexible finance function can help a business take advantage of opportunities created by disruptions, while competitors are still struggling to respond. Developing a dynamic finance capability is a top priority for CFOs, as seen in Deloitte's CFO Agenda, which emphasizes the importance of agility in the face of uncertainty. However, it's crucial for CFOs to follow up their discussions with tangible actions.

Boost Automation

A flexible and well-equipped ERP platform enables individuals to easily access data and decentralize decision-making throughout the organization. This accelerates finance automation, eliminating obstacles and transforming finance into a valuable business partner for every department.

Centralize Data and Streamline Processes

In traditional finance operations, data is often gathered from various systems using processes customized for each system. For example, accounting might utilize general ledger data, while financial planning and analysis departments collect data through forecasting or income statements. However, these distinct processes can lead to inconsistent data generation and distribution. This inconsistency hampers analysts' ability to produce reliable planning and forecasting, creates process inefficiencies, and heightens the risk of analytical errors.

Enable Your Team

Driving transformation in finance within any organization requires more than just implementing SaaS ERP. It involves leaders actively empowering the entire workforce to leverage ERP data for strategic insights. Rather than focusing solely on current efficiencies, company leaders should be forward-thinking, contemplating how to scale and connect data and insights for the future.

Strengthening Resilience

Organizations that flourish in unpredictable conditions are considered resilient. Investing in SaaS infrastructure that facilitates seamless integration across business lines enables continuous, company-wide planning. This not only enhances resilience but also enables finance leaders to anticipate and proactively address risks and opportunities.

One notable example of a company encouraging a dynamic finance function is Tesla. Amidst the rapidly changing landscape of the electric vehicle market, Tesla's CFO, Zachary Kirkhorn, emphasized the importance of financial agility. Tesla's ability to quickly adapt its financial strategies, including capital allocation and cost management, has allowed the company to navigate challenges such as supply chain disruptions and regulatory changes. This agile approach has not only helped Tesla stay resilient but has also contributed to its market leadership in the electric vehicle industry.