As finance chiefs, understanding the necessity of enterprise scalability in financial performance management should be included in their priorities list as it can be proven crucial in future decision-making.
In today’s business landscape, organisations need to be able to scale quickly and efficiently to stay competitive and keep up with growth goals while tightly managing costs and resources.
According to financial performance management platform Planful, to achieve enterprise scalability, organisations need tools to manage data, processes, and resources more effectively.
Scaling a company has challenges, especially if it’s growing quickly or acquiring new business units and departments.
Process integration
One significant challenge in financial performance management is process integration. With rapid growth or new business units, it’s hard to standardise reporting, consolidate ERPs, and align payroll across these entities without a transition plan.
As data increases, tracking, monitoring, and entering data becomes difficult and requires care. Regulatory reporting also adds complexity as it is especially hard when dealing with multiple currencies when expanding internationally or domestically.
Keeping track of changes and making sure the organisation's finances are accurate is key, although planning for financial resources, coordinating budgets, and managing cash flow without aggregation errors pose significant challenges.
M&As
Scaling may also involve merging with a larger company and aligning to their specific needs, introducing further complexities.
Organisations can scale through acquisitions while seamlessly integrating new entities, making the acquisition process a non-event by managing financial and operational consolidation. Successfully navigating these obstacles is crucial for companies aiming to scale and thrive in a competitive business landscape.
Real-time collaboration ensures stakeholders can communicate effectively and make informed decisions in partnership with the CFO and the broader business.
Automated workflows streamline processes such as budgeting and forecasting, reducing manual effort along the way.
