It’s a new year and that means, for most of us, time for a fresh start. A great way to start fresh is by tackling those issues that proved troublesome in 2016. What were the top CFO challenges of 2016 and how can you solve them in the new year?
Top CFO Challenges:
Challenge #1: Too much data, in slow-motion. The overabundance of data and the vast number of Excel spreadsheets that businesses collect on a daily basis can become easily disorganized and painfully difficult to consolidate. This all too often leads to time wasted and costly manual-input errors.
The Fix: Automation. Excel alone provides extraordinary reporting and analysis capabilities, but when it comes to automation it is somewhat lacking. By coupling the current system (Excel) with a corporate performance management system that automates the process of merging spreadsheet data, information stays organized and those instances of manual-input errors are drastically reduced.
Challenge #2: Data security. You can’t secure data without knowing in detail how it moves through your organization’s network or controlling who has access to it. The more team members with access to a system’s data, the likelier the risk of a breach. When those who shouldn’t actually have or don’t really need access have it, you have far less control over what is accessed.
The Fix: Access hierarchy. When access is the problem, something as simple as creating a hierarchy of access is the best solution. By creating a data classification system according to sensitivity levels you can correctly evaluate and implement different levels of protection accordingly. By placing security controls on certain data streams, you can better manage what is seen by whom – significantly reducing any overall data security risks.
Challenge #3: Annual forecasts. Annual budgeting, when done on a yearly basis, takes time. Far too much time in our opinion. On the other hand, with a rolling forecast, the process is ongoing throughout the year, with tweaks and changes made each month or quarter, based on the most current trends. However, even with the growing appreciation of time and resource-savings found by rolling forecasts, many CFOs are finding adoption somewhat difficult.
The Fix: Forecasting software. Part of the problem with less-than-stellar acceptance and adoption is that team members are not all on the same page, nor is the tweaking and changing system as open as it could be. With forecasting software, this becomes far less problematic as the right software will automatically merge data and create that rolling forecast on its own. Rolling forecasts really benefit a company with increased accuracy. Because they are able to adjust and tweak their budgets monthly, it provides a better overall view of the performance of the company and goes by the trends. It also spreads the workload over 12 months rather than all at once.
At True Sky, we can appreciate the impact of these top CFO challenges. Our goal is to help you overcome them. Our corporate performance management software does just that – your business is our business. Find out more today by visiting www.truesky.com.