It isn’t just the role of the Next-Generation CFO that is evolving, the Now-Generation’s role, is as well. In order to be an effective strategic partner, the Now-Gen CFO must embrace BI (Business Intelligence).
BI is the technology that improves the way businesses analyze and organize the information they collect. BI combines financial and operational data to produce critical business insights.
Below we examine how BI can help CFOs become more efficient.
Finance Operations and Reporting
BI can provide the Now-Gen CFO with the ability to collect data from multiple sources and make it cohesive. BI can:
- Automate financial statement preparation and distribution
- Assist with budgeting and forecasting
- Provide predictive analysis and bench-marking
- Calculate compensation packages
- Enable operational reporting of core business drivers
- Calculate revenue recognition
- Provide working capital analysis and monitoring
- Identify, review and reconcile monthly results
BI can help navigate transactions and even warn of reasons to pause them. BI can also be a valuable tool for merger integration and divestiture management. Additionally, BI can both diagnose the drivers of synergy and divestiture benefits and track them in real-time. Providing monitoring and analysis to inform post-transaction company efficiency.
Now-Gen CFO Performance Improvement
Unlike the old methods of finance function reporting, which measure company performance at designated intervals. BI is responsive and can measure in real-time. The targeted reports are instrumental in getting to the cause of financial flaws. BI can also provide turnaround strategies.
BI can also be helpful with:
- Payroll trends
- Invoicing and collections
- Pricing impacts
BI can convert the old-school CFO to the Now-Gen CFO and optimize business diagnostics for transaction execution. That being said, BI can be an extreme value-add and bottom line booster.
Click here to learn more about the Transformation of the CFO