Below is a Guest Post by Andy McQuarrie from The Hillman Company.
Agile finance will change your ability to impact your organization. It occurs when accounting and data analytics are combined, resulting in a supercharged discipline. Let’s step back and take a high-level look at how accounting and data analytics are perceived.
Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. Data Analytics is the science of analyzing data.
- Language of finance.
- Facilitates compliance oversight.
- It offers a scorecard on the performance and health of the organization.
- Discipline improves the quality of the data.
- Not informative to the untrained eye
- Evaluating financials can be a puzzle to be solved.
- The timing of information delivery can be delayed.
- Instant error notification
- Provides data discovery (path to clarity)
- Dynamic: highlights trends and outliers
- Improves timing on data delivery
- Only as good as the inputs
- Insufficient data to analyze
- Design lacks flexibility
- Selecting the correct analytical tool
Combining these two disciplines will enhance the pros and minimizes the cons of each, resulting in a powerhouse called Agile Finance. This supercharged discipline can be used to create a Single Source of Truth (SST) database to facilitate your organizations’ compliance, treasury, cash management, reporting and analytic requirements. With a SST database, you will have clean and detailed data to apply data analytics, enabling you to provide clarity, insight and understanding to impact decisions across the organization.
Impact of Agile Finance:
- Manage and facilitate compliance and reporting
- Communicate key insights
- Gain an understanding of the past, present and future
- Maintain the quality of data collected
- Create a more impactful role for yourself
- Leverage efficiencies of scale to minimize the cost of operations
At The Hillman Company, we have successfully implemented these concepts and strategies, and they have transformed our ability to meet and adjust to the needs of executives, investment team, shareholders, and employees. The Hillman Company’s solution was validated with a current state assessment (benchmarking study) that highlighted the unmatched functionality of this approach, the efficiencies of scale, the breadth of data, and the real-time visibility to our portfolio and operations. The current pandemic has highlighted the need for agile finance during these challenging times.
Leveraging agile finance when facing unprecedented challenges:
- Able to quickly correlate the current portfolio to the current environment
- Able to manage business decisions based on accurate, timely and reliable data
- Have seamlessly migrated to working remotely
- Have clear visibility to operations and its priorities
Multiview Financial Software is the cornerstone of our ability to achieve and utilize Agile Finance. Multiview’s enterprise software provides the flexibility to define and configure your financial solution to capture critical data by using accounting disciplines supported by Multiview’s ERP financial platform. In addition, Multiview provides robust and dynamic workflows that enable organizations to embed procedures and processes into its ERP platform. The Hillman Company uses data analytics to monitor and manage operations and resources.
I am an enthusiastic believer in the concept of agile finance and encourage you to utilize this strategy to impact your organization.