As finance professionals, you’re probably fully familiar with the term financial management and it’s even more likely you’ll be striving to be good financial managers for your business. But what does it actually mean to achieve good financial management?
For many finance professionals, practising good financial management means that they have truly efficient processes in place in their entire department. Financial requests from invoices, purchase orders and approvals travel through the workflow smoothly and seamlessly and every penny spent by every spender (or budget holder) in the business is accounted for. But without the right tools, many finance professionals struggle to achieve this…and this is where the problem lies.
Let me explain by first turning financial management on its head. Historically, financial management requires finance professionals to account for and process every financial activity happening in the business. But the reality is that until now they’ve been trying to achieve this without full visibility of departmental budgets, inaccurate late month end reports, and painstakingly slow manual, paper-based systems. In fact, Financial Director found that 15% of FDs stated their departments can take up to 20 days to complete month-end close. That’s almost a whole month in itself to report on the previous month! Lots of finance departments operate despite these issues, considering them as being “just the way it is”. But what if there was a better way? This is where budget holder management comes in.
Unlike the standard financial management practices, budget holder management brings other stakeholders involved in the purchase to pay process, like budget holders and approvers, into the fold to help streamline financial workflow. Budget holder management brings your company’s entire financial ecosystem onto one holistic platform. By doing so, both finance departments and budget holders have full visibility of how the company is spending, empowering them to make more intelligent spending decisions. With budget holder management requiring just one platform for everyone, missing documents are a thing of the past as the process benefits for automated processes and document matching functionalities.
Although still in its infancy, budget holder management is quickly being adopted by finance departments looking for a next generation solution for financial management. It’s understandable that budget holders and finance teams alike probably feel some nervousness inviting each other into their domains, but there isn’t a need to be. For finance teams, they finally get full access to all financial activity happening in the business and for budget holders, they get the added bonus of having access to live budget data and historical data to help them forecast and plan future spend. So, with everyone’s wish list being ticked off, is there really a reason you wouldn’t consider budget holder management for your business?
Compleat offers budget holder management solutions to SME’s and large organisations in an easy to use, fully automated, digital platform. For more information on how budget holder management can help streamline your financial workflow, visit www.compleatsoftware.com