Harnessing Cash Flow and BI Among Top Priorities for CFOs

Chief finance officers and financial executives are concerned about their organisations’ ability to efficiently and effectively manage cash flow and working capital due to the growing need to address economic volatility with greater precision, speed and flexibility, according to the latest Finance Priorities Report released by global consulting firm Protiviti.


“Organisations are facing tremendous change and new cost pressures, and they struggle to know whether or not they are prepared to adjust and manage sufficiently the impact of various upcoming changes,” says Jim Pajakowski, executive vice president of global services for Protiviti.


The survey included more than 100 questions about primary concerns and priorities in five categories: Process Capabilities for Financial Transactions; Process Capabilities for Financial Analysis; Emerging Issues; Technical Capabilities; and Organisational Capabilities.


The top survey results in the Process Capabilities for Financial Transactions category demonstrate the respondents’ continued focus on streamlining the financial close from improving account reconciliation and financial consolidation processes to the period-end close, finance functions want to achieve greater efficiency in:


1. Cash forecasting
2. Period-end close
3. Account reconciliations
4. Working capital management
5. Banking relationships


“Given so much uncertainty, organisations are seeking to manage and understand as clearly as possible all aspects of their cash flows,” said Ryan Senter, managing director in Protiviti’s Business Process Improvement practice. “Bridging the gaps in knowledge by strengthening relationships with banks is another approach that many finance departments are re-emphasising.”


Profitability analysis and reporting – specifically related to products and segments – along with performance management and business intelligence rank among the top priorities in the survey category of Process Capabilities for Financial Analysis:


1. Strategic planning
2. Periodic forecasting
3. Budgeting
4. Performance management/executive dashboards/balanced scorecards
5. Profitability analysis (product, customer, channel, etc.)


“Without question, more and more companies are looking to harness business intelligence and big data for strategic planning, forecasting, budgeting and profitability analysis,” says Jay Thompson, also a Protiviti managing director with the Business Process Improvement practice. “They also want to analyse their data to gain an in-depth understanding of their customers, products and other business areas in order to identify the best opportunities for profitability.”


Emerging Issues
When asked to rank their priorities in the Emerging Issues category, financial executives selected issues that pose new risks, challenges and opportunities for finance functions:


1. Sustainability
2. Globalisation
3. Workforce mobility


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