by Babak Ghoreyshi, Global Marketing Program manager at SAP
The New York Stock Exchange might close at 4 p.m. every weekday, but that doesn’t mean your company closes at the same time. Indeed, modern technology is allowing businesses to operate 24 hours a day, seven days a week, in multiple parts of the world.
If you are a CFO or finance professional in today’s round-the-clock business climate, you are likely getting hit with a maelstrom of financial data that’s taking longer and longer to process. However, in spite of the increasing volume and complexity of this real-time information, you are being forced to stay accurate while completing accounting tasks in a timely fashion.
Fortunately, savvy CFOs and accountants are overcoming these challenges through predictive finance, which is helping them achieve the following goals and more:
- Save time for finance teams by dramatically simplifying processes
- Allow for better integration between financial plans and actual data
- Provide CFOs with more data and input to steer better business decision-making
Accuracy and efficiency during “crunch time” is key
Your closing and disclosure processes need to be seamless and unobstructive to business operations. At the same time, they need to be accurate. The best way to achieve that is through “real-time closing” — a concept that was nothing more than a pipe dream before the advent of predictive finance technology.
Predictive finance solutions optimize financial analysis across all business platforms to help CFOs increase efficiency, accuracy and profitability in today’s non-stop business climate. The advent of predictive finance has enabled new kinds of information to be classified and re-purposed in real time. This gives you the ability to make changes that are captured and revised on multiple platforms simultaneously — exactly when time saving measures are needed most.
For accounting managers, period end closing is when many key finance activities have to come together. Predictive finance helps CFOs and accountants more effectively manage their closing processes to ensure increased profitability and strong business growth.
However, to ensure a timely, accurate and trouble-free closing, you need more than just an automation. You need cross functional real-time insights, and you need to be able to assess and predict entity close shortcomings so you can take the right steps to avoid problems.
The benefits of predictive finance
Predictive finance can help you leverage market signals to maximize forecast accuracy, increase forecast speed, set clear benchmarks, and accelerate actions. It can also help you respond faster and with greater certainty to changing business conditions. Most importantly, predictive finance helps you optimize analysis across finance processes to drive superior business outcomes.
Predictive finance works at both the corporate and the local level. Here are some of the specific technical benefits offered by our predictive finance platform:
- Foresee shortcomings in entity close processes.
- Collaborate to stay ahead of problems and remain on schedule.
- Evaluate and predict the processing speed of closing functions, and anticipate the likelihood of re-bookings and inter-company mismatches through maximum cross-functional insight.
- Close corporate books through accelerated run-times for period end reports.
- Create statistical analysis of historical data to automate real-time accruals.
- Create quick-access financial statements and management reports in accordance with IFRS and other local legal requirements.
- Get insights into period end data during the mid-period to help you prepare statements quickly and accurately.
- Receive guidance so you can proactively course-correct your business.
- Incorporate human judgment to help you respond faster and with greater certainty.
Learn more about predictive finance solutions today
The predictive finance by SAP Solutions translate to financial closings that are delivered on time, with deeper insight, greater accuracy, and compliance. By leveraging predictive finance with SAP Solutions, you benefit from closer alignment between organizational tactics and strategic vision, and from closing processes that help you ensure increasing profitability and strong business growth.
Find out how predictive finance with SAP Solutions can benefit you by watching our Advanced Closing video!