Efficiency by integrating systems
Improving liquidity is an obvious target for many companies. Investing in a support system can pay for itself quickly, but before making a decision it is important to carry out a thorough evaluation so as to choose a system that can meet requirements on an ongoing basis.
“Manual stages in liquidity management increase the risk of errors occurring in the forecasts. It also involves extra work when data that is already in the system is input again. One solution is to integrate the system. This simplifies the process and gives a more accurate forecast,” says Krister Backlund, a consultant at OpusCapita Scandinavia.
However, we must be aware of the fact that not all information can be obtained from other systems. The information must be checked, adjusted and completed manually. By carrying out a review of the Group’s infrastructure we are soon able to see which systems should be integrated when taking costs and benefits into account.
“If a group of companies has many ledgers or several subsidiaries, integration is definitely profitable. However, integrating a payroll system which is virtually static is not profitable,” says Krister Backlund.
Flexibility for all
Apart from the opportunities involved in integrating systems, there are also a number of key issues which need to be looked at very carefully before investing in a support system.
Many companies make the mistake of looking at the forecast system as a project which only concerns the finance department. However, there are many more stakeholders that have to be involved.
“To get a complete picture of what a forecasting system can achieve (and to anticipate future needs) it is extremely important to get several parts of the company involved, for example, the group’s senior management and managers of the various subsidiaries. A key factor for success is the involvement of end users and people reporting to the system.
When it comes to reporting, the various stakeholders in the group have different requirements - both in terms of the type of information and when they want to make use of it. Therefore it is also important to choose a system with flexible reporting.
“Different parts of a group must be able to use the forecast in different ways, based on the same output. You have to be able to filter the data and construct the report according to your requirements, whether you are in senior management or working for one of the subsidiaries,” concludes Krister Backlund.
