Economic uncertainty sends shockwaves through all businesses, service organizations suffering the consequences. The recent drastic drop in the number of Netflix subscribers is a good example of this. Department CFOs say there is an urgent need to track the performance of their overall planning strategies linking finance and operations. However, getting the data to analyze has been difficult for even the largest service companies. The Spring 2022 release of FinancialForce addresses these challenges.
Therefore, CFOs need financial planning and analysis (FP&A) integrated with operational planning applications to help track plan performance across all P&Ls and finance. FinancialForce’s decision to launch a full FP&A on their ERP Cloud platform shows that they clearly read the services market and listen to their clients’ CFOs about what matters most.
CFOs want to know the financial impact of every planning decision
Even in times of economic stability, finance teams struggle to get from operations planning teams the data they need to predict the financial outcomes of decisions. Line of business managers look to finance to provide accurate and detailed information about the financial implications of every planning decision. By having FP&A use the same accounting, reporting, and planning data, CFOs, COOs, and their teams gain greater visibility and control over all aspects of budgeting and forecasting.
One of the biggest shortcomings of FP&A in the past was relying only on siled financial data with little visibility into operational planning. Finance teams need access to all the data available in finance and operations to do their jobs well and create accurate forecasts. Implementing FP&A with any ERP platform should start with the goal of providing integrated business planning. Sales management and their teams also need visibility into FP&A reporting and analysis to manage revenue. FinancialForce’s decades of experience on the Salesforce platform, combined with the integration expertise that Salesforces’ acquisition of MuleSoft brought to the company four years ago, will increase the likelihood of adoption of their FP&A solutions.
CFOs of service companies face new economic uncertainties every week. As a result, they are more interested in gaining greater visibility and control over the planning process, including version control, more automated multiple planning options, and more real-time collaboration across the enterprise. business, all on one platform. FinancialForce’s DevOps and Product Management teams are to be commended for identifying these challenges and including them in their FP&A application delivered in the Spring 2022 release.
The future of FP&A is an integrated cloud
Service organizations are quicker to migrate to the cloud than their product-based counterparts. This is because sourcing, order management, and supply chain workflows tend to be less complex than product-driven businesses. Service organizations also need financial management, procure-to-pay, and professional services automation (PSA) all on the same platform to support operational planning with FP&A.
FinancialForce’s Multi-X functionality is extended in the Spring 2022 release to simplify financial statement consolidation and meet the needs of multi-entity organizations. In the latest version, it is possible to record taxes due on intercompany tax transactions, which speeds up the intercompany process of taxation and reporting. The Spring 2022 release also streamlines the creation of multi-company sales invoices and simplifies the preparation of consolidated financial statements with consolidation group structure features.
New location features essential for running a global business have been added, including support for Switzerland, Denmark, Finland, and Austria, as well as improved business operations in Germany and Australia . Additionally, multi-X supports multi-company invoicing support and advanced invoice consolidations for multi-revenue invoicing. Calculation and registration of tax on intercompany transactions and activation of cash matching process between companies are also supported.
The future of FP&A is an integrated cloud, confirmed by FinancialForce’s launch of the ERP Cloud, Professional Services Cloud and enhancements to its Customer Success solutions. “In today’s business environment, organizations need to be able to respond quickly to disruptions while continuing to innovate and deliver tangible results to their customers,” said Dan Brown, chief product and strategy officer at FinancialForce. “Our Spring 2022 release gives our clients a richer set of tools to help them pursue their primary purpose, delivering exceptional client results while improving the client experience along the opportunity-to-renewal journey. .”
New Professional Services (PS) Cloud additions in the Spring 2022 release include customer-requested enhancements to skills and resource management, service estimating, and project management. FinancialForce customers have also requested better resource management to increase their efforts to train and retain their workforce. Therefore, the Spring 2022 release adds intelligent automation to the staffing process by enabling automatic assignment of resource requests that meet specific criteria and an expanded ability to model ideal staffing scenarios for a project, opportunity, or task. region. These enhancements improve PS Cloud’s resource optimization capabilities and enable resource managers to deploy ever larger and more complex teams efficiently and cost effectively.
Service organizations are looking for cloud-based professional services ERP systems that deliver greater forecasting accuracy, faster forecasting and budgeting, and improved accountability, visibility, and control. Integrated clouds are the future of FP&A for all of these factors and the need of all service organizations to improve revenue and operational performance. Additionally, given today’s growing economic uncertainty, CFOs also want to increase predictability and risk management strategies, while fostering greater collaboration. All of these factors combined define the future of FP&A in an integrated cloud, something FinancialForce has been doing for decades on the Salesforce platform.