Financial Management – Why Is It Important for a Company?
Why Is It Important To Do Good Financial Management Of A Company?
Financial Managers of companies are no longer just in charge of keeping the numbers and must go further to achieve sound financial management. The latter is essential for organizations because of the following:
The CFO assumes the role of being responsible for regulatory compliance. Currently, financial managers of companies have to deal with the increase in bad practices, a large number of new laws and regulations that are constantly approved, and the obligation to provide transparency with customers, suppliers, and partners.
For this reason, the use of artificial intelligence makes it possible to automate the analysis of large volumes of data, quickly detect these bad practices and control the traceability of decisions and data.
Analyzing large volumes of information through technology helps predict the company’s obstacles and seek solutions before they appear.
It detects obstacles in advance so that it can make better decisions. In this sense, the proactivity of CFOs is an essential element for effective financial management.
Allows You To Automate Data Analysis Tasks.
Robotic process automation (RPA technology) is becoming increasingly important in the financial departments of organizations. In fact, according to a Gartner survey, 50% say that robotic process automation (RPA) is being implemented or implement. It is also predict that this percentage will increase to 88% in the coming years.
And it is that can apply the RPA technology to a multitude of financial processes such as the reconciliation of accounting entries. The closing and financial consolidation. The tax declaration, or the preparation of reports.
Organizations aim to increase their profitability. But they need to optimize the resources they already have to do so. Sound financial management helps maximize these resources to increase profits and productivity. It contributes to optimizing the company’s material and human resources.
Challenges Of The Future Of Financial Management
CFOs have had to take the initiative since the start of the Covid-19 pandemic in 2020 to restore growth to the companies they work for. Reducing expenses and increasing revenues. The latter will remain the priority for the future. And financial management will face challenges.
Improve the return on investment (ROI) of the digital actions of companies. To achieve this, CFOs will need to link their company’s digital initiatives to business key performance indicators (KPIs).
Digitize The Financial Function.
The digitization of finances means completing the digital skills of financial directors and their teams. However, additional training. Such as the Santander Skills Scholarships | MBA Essentials 2022 – LSE that. Contributes to the continuous movement of professionals in hard and soft skills essential for sound financial management.
Democratize Data And Analytics. According To Gartner’s Chief Financial Officer Leadership Vision 2022 – 3
According to the strategic Action for Success report. 76% of finance leaders say decision-makers have increased access to essential business operations and performance data through external providers or systems. CFOs will need to democratize advanced analytics. And know-how to interpret data to differentiate reality from exaggerate data correctly to meet this challenge.
Evolve towards Artificial Intelligence (AI) and Machine Learning (ML – machine learning). Based on Workday’s global survey of 267 CFOs, the priority is frictionless finance—finance that uses task automation or machine learning in everyday processes. In this sense, 49% of CFOs maintain that data management and analysis are their main priorities in the next three years. And 60% will invest in cloud platforms and implement artificial intelligence and machine learning solutions.
Discover How The Santander Skills Scholarships | MBA Essentials 2022 – LSE Will Help You Learn More About Financial Management
Banco Santander launches the Santander Skills Scholarships | MBA Essentials 2022 – LSE. In addition, from the hand of The London School of Economics and Political Science, one of the most prestigious international institutions in economics and business.
In this ten-week certified course, 100% online and taught through weekly and asynchronous modules, you will quickly and practically acquire the essential business skills to make better decisions and achieve a more significant impact within your organization. The package is offered in English, Spanish, and Brazilian Portuguese.
Unique opportunity in which you will be able to quickly assimilate the three pillars of business management and leadership that are taught in an MBA: strategy, finance, and human resources. Specifically. You will be able to identify and maximize the strategic competitive advantage of your organization as you develop your understanding of the strategic environment and
The market in which it operates. In addition. You will have the support of LSE mentors and facilitators, and you will be able to interact with your classmates through weekly forums and collective dynamics .
Do You Want To Have A More Relevant Role In Decision-Making In Your Professional Environment?
Enroll in the Santander Skills Scholarships | MBA Essentials 2022 – LSE and whether you get it or not, remember, never stop learning.
(The call for Santander Skills | MBA Essentials 2022 – LSE Scholarships will be available in the coming days, but in the meantime. We encourage you to consult the Santander Scholarships portal. Where you will find hundreds of opportunities so you can achieve your goals. Find training that best suits you and gives your career a boost. And remember, never stop learning!)