Tips for financial managers in 2019
Companies have always relied on the financial strategy of their CEOs, and once a financial manager has been hired, that soon becomes their task. More than ever, new technologies are being rolled out each sector, and it's often down to a financial manager or director to decide whether it's worth their while to invest in them or ignore. With this in mind, here are a few strategic tips to save money, but also improve productivity.
Go green
If your business is not running cost-effectively, then ultimately it's down to you to solve the problems in hand. Going green and saving energy might be a good way to incentivize replacing old energy-consuming equipment and paper wastage. Other areas that are recommended to investigate are heating, lighting, office equipment, and air conditioning.
Outsourcing big data technology
If you work in the healthcare sector, say, and processing overpayments is high on your priority list, then outsourcing this to a firm with the technology to process big data might be a good option for your company. The high volume of data to process means that issues such as overpayment recovery may be causing constant payment errors and financial problems. A company with the correct software and expertise will help prevent payment errors and ultimately save your company time and money. Finally, this will also provide some insight, which can then be turned into analysis.
Have a plan for that data
Once you have the data and the insights reported back to you, it won't be much use if you don't present a plan for it. What you do with that data should then be present in your marketing strategies, and importantly, your growth strategies. Keeping on top of your plan and tracking its progress means you can report back to your teams and inform them of the progress and new information.
Cloud-based inventory management
If your company ships physical goods, then migrating your inventory to a cloud-based system is recommended. Not only does this prevent any colossal catastrophes if a server problem occurs, but it also allows you to be connected to the internet's information on sales trends. This, in turn, means that you can predict upcoming seasonal demands and ensure that you have complete access to all of your inventory details. Using a cloud-based system means you can be automatically alerted to low-stock and other potentially finance-draining issues. This also means your customers won't be kept waiting.
Crossover between finance and IT
It has been found that CFOs (Chief Finance Officers) have been fundamental to the organization of IT systems. Despite lacking the technical skills to code or develop or install software, they have a strong understanding of what's needed in terms of investment. They also have a profound knowledge of the cost of organizing operational units and how much a company can profit from investing in new technologies. It's well worth any finance manager getting some information technology training and understanding, as the crossover is bound to increase as IT becomes increasingly integral to financial success.
On top of traditional advice to bear in mind, such as money that can be saved by effectively managing your overheads, it would seem that there are new technologies and methodologies that will affect the role of finance managers for years to come. Preparing to be tech savvy and being able to shell out advice on where to invest it could become a crucial role of the finance manager or CFO.