To run a successful business, you need accurate and up-to-date financial information to make important decisions that affect the future of your company. Each department needs self-service access to this information on a real-time basis in a flexible format. However, most companies still rely upon month-end reporting, which is based upon past data and is less user friendly by nature.
The increased adoption of real-time financial software will continue to revolutionize the way organizations view their finances. By accessing live data, companies will make decisions much faster and smarter than ever before. In turn, this will streamline the month-end reporting process and lead to the eventual phasing out of the monthly close process altogether.
The traditional approach
Historically, most business decisions have been made using historical monthly data generated through the month-end reporting process. This can be a slow and tedious procedure, which relies heavily on manual data entry by accountants and often took days or weeks to complete. The month-end close process places significant strain on finance teams, reducing their capacity to support the company with strategic insights, business partnering and other higher value activities.
There are also many business drawbacks to this approach. The data may be incomplete and is often outdated. This poses a challenge for companies who need up-to-date financial information to make informed decisions. There may also be limited insight into the underlying trends within the data due to its inflexible format. This makes it difficult for companies to remain competitive in the face of rapidly changing market conditions.
Real-time financial information software
With the advancement of technology, real-time financial information is now available to provide users with more in-depth insights into their current financial position. This will allow for faster and smarter decisions, as well as aid in streamlining month-end reporting processes. Real-time financial information offers a range of benefits that can help businesses increase efficiency and reduce costs associated with month-end reporting.
One of the main benefits is that real-time financial information can provide users with more accurate data than traditional month-end reports. This means that important decisions can be made quickly and accurately, without delays caused by waiting for the end of the month to have all the necessary data. Additionally, with a single source of truth, users can be sure that they are looking at the most up-to-date information. It should increase collaboration by providing everybody with the same information on a real-time basis and avoid people relying on manual reports that may contain errors.
Real-time financial information also makes it easier to identify trends and patterns in data quickly. This allows organizations to adjust their strategy or operations in response to changing market conditions sooner. They can also make more informed decisions on investments and budgeting as they have access to more accurate information.
Finally, accessing real-time financial data also saves time and money for organizations by removing the need for manual processes associated with month-end reporting. By eliminating these manual processes, companies can focus their resources on making more informed decisions and streamlining operations rather than crunching numbers.
The shift to real-time financial information is set to transform the way organizations view their finances, providing business users with faster access to more accurate data. This will lead to improved decision-making and eventually phase out traditional month-end reporting processes altogether.
With this new technology in place, businesses will be able to make better use of their resources and make smarter decisions on investments and budgeting. Ultimately, real-time financial information will revolutionize the way organizations view their finances and provide businesses with the insights they need to succeed.
What could our next steps be?
Although this has been discussed for years, it’s now closer than ever. The key question here is what would real-time reporting mean for your organization? Can you define the problems that real-time reporting would solve? This is step one. You can then use these problem statements to start your research and shortlist possible solutions.