Top companies unhappy with finance function output

News Article - 26 February 2010
Category: Business

Many of the UK's biggest companies receive inadequate management information from the finance function. A survey from auditor PricewaterhouseCoopers of over 100 of the top 200 FTSE companies revealed that 80% were dissatisfied with the quality of data they receive; 63% regard the finance function as playing an essential role in developing strategy.

The survey revealed the most effective finance departments had additional resources, such as shared service centres and consolidated finance processing, in addition to greater investment in analytical activities. Employees were also better paid in successful departments.

A robust finance function is seen as important to the overall success of strategic planning, and is likely to become even more important as Britain exits recession. As companies struggle to plan long-term strategy due to abnormal economic conditions, usable financial data will become essential for the success of key business systems, such as inventory management.

Increased competition will also put pressure on businesses to outperform the market to take advantage of higher demand from consumers who are slowly gaining confidence. If projections cannot be made on the back of solid financial data, companies risk overestimating or underestimating demand and facing financial problems if the economy experiences further difficulties.

Finance departments must ensure the information provided to management is meaningful, and can be accessed quickly and efficiently. Access is advising UK-based organisations to consider the benefits of a software-based solution in extending the capabilities and reach of the finance function. The right systems can automate major and minor processes, in addition to providing more useful data representation that can be easily accessed by the boardroom. Dashboard reporting tools also allow executives to view data in real-time.

With more meaningful data flowing freely to the boardroom, companies will find it easier to plan growth strategies and make decisions on the back of sound financial data. Access offer a comprehensive software solution designed to improve the efficiency of the finance function. Workflow forms software, for example, creates an electronic version of any form and makes the information easily accessible, allowing financial data such as paid invoices to be reflected in company accounts as quickly as possible.

For more information, please call Access on 0845 345 3300.

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