Since financial systems are becoming increasingly interconnected company-wide and globally, any changes made to a system impact wider parts of the business, according to a survey announced by Basware. This increased interdependence creates a network effect that impedes cash flow visibility and confidence.
The 2011 Cost of Control - Fuzzy Finance report, the third annual report commissioned by Basware, provides insight into the opinions and priorities of more than 550 finance executives around the world. The report includes an ongoing trend comparison with the 2010 and 2009 Cost of Control reports to measure finance executives' confidence and strategic business goals.
Concern about the visibility of cash flow was the prominent theme uncovered in the survey, largely due to the increasing interdependence of finance systems currently within businesses and on a global scale. What was once a purely technological problem of the "dialogue" between disparate systems has now become a series of complex interdependent workflows, resulting in a "network effect" that impacts operational efficiency across the organization. This is further complicated by interaction with external systems that are equally interdependent. As a result of this interdependence, 71 percent of global CFOs and finance directors are concerned that greater levels of reliance between different finance systems present cash flow visibility challenges.
Despite ongoing cost savings challenges, overall confidence in the regional and world economy has increased among CFOs since 2010 and 2009 - both by 18 percent. Confidence in company performance has moderately increased (+7 percent), but confidence in the performance of the finance function remains static.
Click here for a full copy of the 2011 Cost of Control Fuzzy Finance report.
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