Managing Director LucaNet UK & Ireland, Gavin Allen Presents...
A recent report published on CFO.com highlighted that amongst the top issues of focus for Financial Controllers and Financial Managers, was cash forecasting. This unsurprisingly represented one of the highest-ranked priorities in many companies. Knowing your cash position - with confidence - is vital in the turbulent financial landscape we find ourselves in post-Brexit.
Back in early May, I was given the opportunity to speak at Accountex 2016 and interviewed just prior to the presentation by Tom Herbert, Business Editor of AccountingWEB.com. My presentation had been on a subject I am passionate about - how technology is helping the Office of Finance deliver key insights for their business. However, it came with a warning - the wrong technology can directly lead to a lack of focus on the core accounting values for many Finance Departments.
I've seen this happen many times during my career, and it's always avoidable. As financial professionals, we all require the same thing - accuracy of reporting and more specifically accurate forecasting of cash. It starts with data collection and relies on your chosen software delivering fast, accurate results, driven by sound accounting principles. Knowing your cash forecast now, with confidence in the figures is as important now as it ever was - and it will be even more so post Brexit. How we put in place the necessary reporting structure to deliver this depends on many considerations, not all of which or technological, which I have outlined in my presentation from Accountex.
An example of the use of the wrong technology is the inappropriate use of spreadsheets for everything in the Finance Department. Make no mistake though, spreadsheets are a great productivity tool, but they carry inherent risks for reporting and forecasting. See the Top 7 Spreadsheet Errors here, and an especially interesting infographic here, for a little more insight.
Can you trust such a technological approach for your cash projections?