Now more than ever, forward-thinking CFOs rely on data-driven insights to make key decisions about their company’s performance and growth. However, these insights are only as good as the numbers that support them. The more accurate and complete your data is, the sounder your business decisions.
That’s where a single source of truth enters the picture.
Having a core set of data, both operational and financial, that’s common across the company enables visibility into what the data means and facilitates consistent communication about performance. As a result, finance leaders can make better business decisions.
Yet even though the recent Adaptive Insights CFO Indicator report found that 70% of CFOs lack confidence that their teams have the necessary data for timely business decisions, 51% say moving to a single source of data is too expensive.
Of course, the reality is, the cost of doing nothing is higher. The key to better decision-making is building trust in the numbers and getting to accurate financial data more quickly. Relying on manual spreadsheets only gets you so far to deliver quality, relevant, actionable data to stakeholders. As a result, decision-making is usually slow or based on gut feelings instead of the latest numbers.
Integrated ERP and finance systems ensure confidence in the numbers
A modern cloud finance system that, for example, integrates with your enterprise resource planning solution can provide the foundation CFOs and their finance teams need to create meaningful, trustworthy budgets and forecasts. Automated data flow provides consistent and reliable access to transactional data from your ERP system.
The numbers in your model and reports are up-to-date and accurate. You don’t need to worry if you uploaded the right CSV file or if someone broke a formula in one of the hundreds of spreadsheets you used to consolidate. Since the data is coming directly from the source, you know you are working with the real numbers. This frees up your team to add more value through analysis, inquiry, and gaining insight into your business.
Entertainment company gains insight into financial and operational metrics
Take Legendary Entertainment, for example. The fast-growing entertainment and media company relies on the strong integration between the Sage Intacct financial management system and the Adaptive Suite for analyzing its business performance. Decision-makers can view financial and operational metrics by any relevant dimension, such as department, sub-department, item, or instance.
“It’s all about the granularity,” said Dino Gioia, the company’s recent senior vice president of finance. “For Legendary Entertainment, that might be looking at things from a film campaign, episodic, or seasons level.”
Integration also means finance and accounting teams spend less time entering and updating data, and more time analyzing it, Gioia said. “You need to be able to access and analyze information at a granular level in a real-time environment. Integration makes this possible. Now you have more time to analyze your business and determine next steps. In the case of Legendary Entertainment, would it be more profitable to make more TV shows, produce more films, or expand into another business?”
In short, CFOs and other decision-makers can no longer rely on intuition or turn to outdated solutions for insights. Instead, savvy finance leaders are moving to modern finance technology that offers a single source of truth. The cost is a lot lower and the ROI a lot higher than you might think.
By Bob Gaby from Adadptive Insights Blog