An integrated budgeting and planning tool streamlines the process and feeds accurate financial data into all strategic discussions.
FREMONT, CA: Since the introduction of ERP systems and Excel, accounting and finance technology has advanced significantly. Organizations were compelled to depend on Excel owing to the inflexibility of ERP systems. Excel brings version control difficulties and other data complexity, making budgeting and planning challenges. A corporation quickly outgrows Excel and is prepared to advance to the next level of financial maturity.
Perhaps companies have raised funds from a group of interested investors and put together a board of directors that demands frequent reports and an updated picture of the prospects. This puts a lot of strain on the finance department as they deal with time-consuming, non-automated complex data operations.
Irrespective of the explanation, the capacity to organize and manage diverse financial information is the first step in examining variations at a granular level. This is the point at which Excel and ERP systems start to fail. Users now have a plethora of data sources emerging from non-integrated systems that aren't updated in real-time to generate accurate and complete models and estimations.
Leverage Integrations to Enhance Efficiency
Direct integrations are a simple way to improve the efficiency of the budgeting and planning processes. Integrations can automatically take data from many systems, arrange it, and securely store it in the cloud using a single platform.
Here's a summary of some of the essential advantages of using direct integrations throughout the budgeting and planning process.
Function From a Single Source of FP&A Truth
Companies may have heard the phrase "single source of truth." There is a system that offers the most detailed description of each data set in a corporation. A human resources information system (HRIS) keeps track of employee-level data. Consumer data is a single source of truth for customer relationship management (CRM).
The same is applicable for financial planning and analysis (FP&A) experts' budgeting and planning software. Financial data from diverse systems (ERPs, HRIS, etc.) is integrated into a centralized platform, which serves as the single source of truth for the FP&A team's financial data.
Facilitate Strategic Discussions and Strategy
Interactions among decision-makers are the starting point for company goals and strategy. The FP&A team's job is to offer decision-makers the reports, budgets, and predictions they need to have strategic discussions. The capability of the finance team to constantly supervise company performance is a vital indicator of the firm's success.
The finance team's capacity to effectively evaluate data is hampered if they have to rush or spend weeks on manual operations to create these crucial reports. A unified budgeting and planning tool streamlines the process and feeds accurate financial data into every strategic discussion.
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