What financial reporting tools are available to DAF?

The function of the finance department of a company is to assist the general management in making decisions in terms of performance management and strategic orientations. It provides steering indicators based on financial reporting tools. The digital transformation of the company has led to an increase in the volume of financial data and the appearance of new tools that can facilitate strategic decision-making, particularly in the context of an IT project.

The limitations of current financial reporting

The role of the CFO is to optimize the company’s strategy, based on the analysis of financial data collected from the management tools of the various departments.

Previously, he relied on Excel and Access spreadsheets to process data from management software. Now, faced with the volume of information produced every day, these tools have become obsolete and not efficient enough. Their use would require spending hours collecting data to harmonize them, cross-reference them and finally adapt them to spreadsheets, which are more capable of handling so many rows.

The value of automated financial reporting

First and foremost, automated financial reporting saves time. The collection and analysis of automated data in real time generates high added value. Reducing human intervention reduces the risk of errors, cuts processing times and frees up efficient staff time for data analysis.

The centralization of data on a single solution guarantees a consolidation of figures from different departments. Management control can be based on real-time consolidated data, taking into account the company’s financial history. All the functions of the company are concerned, the data can come from any application present in the information system. The dashboards produced by business intelligence tools are therefore more comprehensive, covering all aspects of a company’s financial management.

An efficient reporting tool provides real-time data by simply updating the numbers. The creation of public and private reports allows for easy access to data by different departments within the company. Each decision-maker can thus manage his or her activity autonomously, without waiting for the reports provided by management control. Since these data are all from the same sources, the results presented by different departments of the company are supposed to be similar, thus limiting debates between sales and accounting figures for example.

Ever more innovative financial reporting tools

Financial reporting tools facilitate decision-making. But they will continue to evolve and it is important to be prepared for that. Beyond automation, one technology to keep an eye on is undoubtedly blockchain as applied to financial tools.
This is a data storage and transmission technology that proceeds in a decentralized way, without the use of a trusted third party, and with a high level of security. Any data written in the blockchain can no longer be modified. This technology is best known for its use in digital currencies such as bitcoin, but it has many other applications.

Private blockchains are increasingly used by companies. Blockchains can be used to create and manage registers of transactions, for example, whether involving funds or goods.

Artificial intelligence and machine learning will also play an important role in the coming years, further pushing the boundaries of automation. Humans will continue to make strategic decisions, but they will be able to rely on ever more efficient tools.

Also in our "ERP Finance" section

• ERP software definition: what is an ERP?
• What is the use of an ERP solution for the finance function?
• ERP finance: what do you need to know as a finance manager?
• CFO: what are the advantages of an ERP for the finance function?
• Finance software: which ERP to choose for your company?
• The challenges of a post modern ERP
• Optimize the management of administrative processes with an ERP solution
• Big data, data management, data analytics and ERP: what are we talking about?
• ERP finance: how to ensure data security?
• CFO and CIO: how to implement a successful finance ERP project?
• ERP finance project: who should be involved in the company?
• The different implementation phases of an ERP project