Corporate Finance: How to obtain visibility and control?
Updated: Jun 23, 2021
During these times of uncertainty, the control and monitoring of a company's budget constantly reflect its financial stability. Maintaining control over tasks related to finance implies having financial planning, which usually involves demanding tasks, since it requires constant monitoring between systems and not having the right tools to use, leads to poor financial control. Having a good control and visibility of the budget provides management and people in charge of managing expenses or budgets of an organization, a better decision-making to achieve corporate objectives.
Each department manages a budget so visibility between them is crucial, besides being one of the main points that an organization must consider for proper expenditure management, this allows financial control at all levels.
In a company the word, visibility becomes more and more difficult because with the growth of the company the objective or the financial tasks increase day by day, the organization of these tasks becomes tedious, and it is normal to lose sight of important points of the processes. Controlling expenses frequently can be very time-consuming because of the data and all documents that have to be recorded in one or even more systems, so that businesses cannot grow sustainably. This tends from the ability which the employees must have to control their movements respecting the financial rules of the enterprise.
The importance of knowing the company's financial situation
For many companies to know transparently the financial activity of the same one can end up making difficult since if we speak of a big company, the areas what I know related to the financial thing are divided in many departments of which it is necessary to have a controlled flow of the movements, which is usually very demanding.
To know the expenses and income that generates an organization is one of the best practices, this allows to identify expenses or investments what are not necessary to guarantee the evolution of the business, in what refers to the financial resources, as the expenses of production, maintenance and growth of the businesses, it is fundamental that these are controlled in a continuous way. It is possible to control each one of the accounts through automated tools that connect the systems to each other to obtain transparency. Therefore, its importance is paramount, and it is probably the basis of financial control and is where more controls should be implemented, recording and evaluating all operations and transactions.
Every company or organization must improve its financial processes day by day, having clearly defined its strategic plan, which will help you better manage the budget that is generated between departments, knowing these movements will allow you to anticipate future problems that interfere with the previously established plan.
5 tips to start gaining control:
Implement habits where you involve simple tasks that allow you to know the limits of your expenses or the main reasons for an outlay.
It offers a vision of the whole company as well as by departments, and even by actions or very specific items, which allows you to know the financial status of the company and act on the specific focus of the problem.
Automate your tasks with tools that help you streamline your monitoring process, visibility and control, so you can keep your expenses under better view.
Establish a vision together with the company's departments, in this way the monitoring will allow you to see closely the financial status of the company, in order to act on the problem in case it reflects one
Connect your systems, this is the easiest and simplest way to start automating, the registration, visualization and monitoring of different systems causes budget control to become tedious and requires a lot of time so having a tool that connects your systems will allow you to optimize your time by seeing all the movements in one, reducing time and effort
Most companies have an ERP that helps them to effectively manage the different departments that they manage, on the other hand there are platforms like SAP Concur in which they can manage the travel expenses, but what if these two systems are not connected, in Axosnet we have a connector that will allow you to integrate both systems reinforcing the management of your expenses, since the ease of doing something in one system and seeing it reflected in another, will reduce the manual data registration, saving time and avoiding the double entry of information, you can learn more about this great solution by clicking here.
Having a tool capable enough to develop functions that allow you transparency in your operations, gives you enough confidence to invest your time in different activities that can increase the income of the company, this is the best way to evolve.