The convergence of regulatory, global and market drivers are requiring finance executives to reassess the structure, processes and positioning of the finance function in the organization. In many companies, growth, mergers, acquisitions and entry into new markets have created a decentralized and increasingly complicated finance organization.
With that in mind finance executives need to balance four main objectives:
- The creation, maintenance, and protection of value for their organization
- Operational excellence through efficient and effective processes and controls
- The identification, anticipation and mitigation of risks to the organization
- The development and maintenance of governance and reporting systems in support of the other three objectives
Complexity is becoming one of the major barriers and overcoming complexity is critical to creating accurate financial results and assuring proper funding of the enterprise.
Finance function must be more than simply a financial data repository to ensure the long-term viability of the business.
To meet all the challenges finance function must provide critical analysis, deliver insight, and align information flows and reporting to support and guide the business strategy. Reducing complexity, reducing cost, improving efficiency, consolidating finance operations in a shared service centre or to outsourcing partner(s), compliance to standards and regulators and risk management and mitigation are just some of the issues organizations are facing today with regards to finance functions. Client are looking for solutions which work for them and PwC is equipped to meet the challenge by harnessing the best available talent from amongst our leading practitioners and utilize best practice knowledge and benchmarks drawn from our extensive client experiences.
Organizations will realize benefits from finance visioning framework developed by PwC to specifically address the critical dimensions that influence the effectiveness of the finance function.
The framework provides a structure for evaluating the adequacy of the current finance operating model and service levels, identifying gaps and setting priorities for change. Five elements of the framework have proven to have the most impact on reducing complexity and enhancing finance performance:
- Performance management
- Consolidation and management information
- People and organization
- Treasury and capital optimization
- Controls optimization
With help from PwC clients achieve efficiency of finance function in several areas, including:
- Achieving enhanced integration across the reporting supply chain through improved internal and external reporting
- Enabling your finance organization to proactively manage business growth and change, through a focus on people and organizational structure
- Rationalizing and automating “key” controls to build and maintain cost-effective controls throughout the organization
- Linking strategy, operations and reporting to strengthen performance management, budgeting and forecasting capabilities
- Maximizing available cash, leveraging treasury and tax strategies, and effectively redeploying capital back into the business by optimizing cash flow and the use of capital
