Data-Driven Forecasting and Planning for CFOs
Business strategy is greatly influenced by financial experts. In this environment, it is no longer sufficient for CFOs to act as financial administrators and guardians of financial reports. They must make use of the data that is being shared within the company. This can be achieved by assisting their counterparts in understanding not just where the organization stands today, but also where it can and should be in the short and long term, generating a more strategic function like the business partnership role. As the CFO, it is always a task to hunt for new strategies for the company's financial performance. The usage of both internal and external information strategically is one of the main factors that affect your company's financial performance.
Forecasting becomes more accurate and useful when it is supported by exceptional quality of internal and external data. Collecting data and insights require the right technology and techniques such as accounting ERP systems, customer relationship management databases, human resources systems, and customer success systems, which help aggregate valid data. CFOs rely on external data to develop better plans and acquire a deeper financial perspective. This helps in gaining overall visibility into key financial and operational metrics of a company. When CFOs get their hands on appropriate data, it creates greater visibility for upcoming opportunities and also helps overcome difficult situations. Before going on board with investors or the bank, your CFO must be able to concisely explain the complete spectrum with the help of richer data and valuable insights. Eliminating unwanted data and keeping data forecasting and analytics as a top priority is essential.
CFOs should have access to information from several divisions within their organization, which keeps them informed about everything that is required to make the best financial decision. Internal Audit and back-office operations desire streamlined reporting processes so they can devote more time analyzing pertinent data and taking proactive action based on the insights it offers. A CFO must conduct a complete research about stakeholders, putting in the effort to predict the inquiries that various stakeholder groups may ask and should be capable of answering both upper-level strategic decisions as well as day-to-day operational decisions. The consolidation of persistent operational procedures into practical digital tools and platforms, which offers unmatched ability to forecast along with other advantages, makes this period for CFOs both demanding and exciting.
领英推荐