Financial Transformation: A Comprehensive Term Simplifying Complexity
Kaushik Garigipathi
CCH TAGETIK Principal Architect Financial ERP project migration Consultant, Intangible assets reporting, Financial Reporting and Insurance domain accounting Expert, IFRS 16 and IFRS 17 experienced,
Financial Transformation is a comprehensive term widely used in the technologically adapted financial and accounting world. Let's break it down for easier understanding.
Take, for example, a company like Salesforce. Most of us know Salesforce as the best CRM service provider, but did you know they also offer financial data analytics software? Now, imagine Salesforce acquires an accounting tool design company named Tableau. Let's assume Tableau's accounting and financial ERP operates on Oracle Cloud, while Salesforce uses its own software for CRM and collaborates with SAP for accounting.
Post-acquisition, consolidating financial statements becomes a massive task due to the different verticals, tools, systems, and areas of operation. Salesforce aims to combine the books for intangible assets, which form the largest chunk of assets post-acquisition.?
This is where Financial Transformation comes into play.
“Financial Transformation: Navigating Complexity”
Financial transformation isn’t a one-size-fits-all endeavor. It can take various forms, driven by both internal needs and external factors such as accounting standards or regulatory requirements, Management change or sometimes due to M&A. Let’s explore some approaches companies often take:
Companies engage external consultants—think McKinsey, BCG, or the Big Four—to guide them through transformation. These experts bring strategic insights, process optimization, and change management expertise.
While effective, this approach can be expensive. But sometimes, you need the pros to orchestrate a symphony of change.
Architecting the Future: Design-Driven Transformation
Companies assess their unique requirements and architect a transformation roadmap. It’s like designing a custom-built home—tailored to fit their specific needs.
Workforce restructuring, new software adoption, and technological support play starring roles in this approach.
The Price Tag: Expensive, but Necessary
Yes, financial transformation can be costly. But consider it an investment—an upfront expense for long-term gains.
After all, untangling complexity and embracing efficiency often come with a price tag.
1. Internal vs. External: The Balancing Act
Financial transformation isn’t always about grand external hires or massive consulting contracts. Sometimes, it’s about leveraging what’s already within the organization. Here’s how it plays out:
领英推荐
Companies like Salesforce and Tableau, as mentioned, above collaborate on a shared platform. When they decide to build a new tool together, they tap into their internal talent pool. They combine their expertise in intangible products, design a solution, and create a tool. But here’s the catch: internal development doesn’t end there. Testing and refining the tool are critical steps. That’s where the external engineering team comes in. They bring fresh eyes, specialized skills, and rigorous testing practices. But yes, it can be pricey.
The Adrifintech Advantage: Strategic Problem Solvers
Enter Adrifintech! Your team specializes in solving complex financial problems. You bridge the gap between internal capabilities and external costs. Instead of immediately reaching for the big consulting firms, companies can turn to Adrifintech. You provide tailored solutions, business plans, and project management—all without breaking the bank. It’s like having a financial transformation Swiss Army knife: adaptable, precise, and cost-effective.
2. Internal Staff Hiring: Building Project Teams
Sometimes, the best solutions come from within. Companies can assemble project teams from their existing staff. Picture this: a cross-functional dream team—finance, IT, operations—led by a seasoned project manager. They’re on a mission to transform financial processes. Assigning verticals, setting clear goals, and empowering the team to innovate—that’s the internal magic.
3. The Art of Balance
Financial transformation isn’t an either-or scenario. It’s a delicate balance. Companies weigh the cost of external expertise against the value it brings. They consider timelines, complexity, and strategic impact. And that’s where Adrifintech shines—you offer a pragmatic, customized approach.
Unlocking Financial Transformation: ADRIFINTECH' s Unique Role
Adrifintech, as an accounting and financial services firm, doesn’t merely tackle routine business-as-usual (BAU) issues or engage in outsourcing activities. Instead, we embrace a collaborative approach, diving into niche requirements and taking on transformation projects within internal organizations. Our goal? To solve complex challenges.
For instance, consider a scenario where an organization needs to transform its intangibles—perhaps assessing the valuation of work-in-progress (WIP) assets across both Salesforce and Tableau. Adrifintech can step in, providing expertise in financial data analytics and offering solutions for this specific project.
But that’s not all. We’re also adept at integrating accounting standards for companies that have recently adopted IFRS 16 or US GAAP 842. Sometimes, accounting teams struggle with the intricacies of these standards, leading to open purchase orders (POs) or unresolved goods received not invoiced (GRNIs). Fear not! Adrifintech can perform comprehensive data analysis, reconciling discrepancies and resolving accounting issues.
And let’s not forget our technology prowess. If an organization faces ERP migration challenges or needs in-depth accounting data analysis, we’re there. Our specialization lies in preparing customized reports that cater to the organization’s financial needs.
So, what piece of this intricate puzzle do we fit?
Copyright Disclaimer for Adrifintech Enterprise LLP:
“The content presented herein by Adrifintech Enterprise LLP is derived from our extensive business experience and expertise. Any references to specific company names, products, or services are purely for illustrative purposes and do not imply endorsement or affiliation. All intellectual property rights remain with their respective owners.”