A solid financial footing empowers manufacturers to make strategic decisions with confidence and bolsters a manufacturer’s creditworthiness, enabling them to secure favourable financing options for future endeavours. With a clear understanding of their financial standing, manufacturers can effectively allocate resources, identify and eliminate cost inefficiencies, and invest in areas that drive profitability.
In the latest Grant Thornton CFO survey revealed that 85% of executives indicated that their financial close processes were at least “fairly mature and sufficient“.
85% of executives indicated that their financial close processes were at least “fairly mature and sufficient”.
-Grant Thornton CFO Survey-
However, 95% expressed a desire for enhancements. While only 5% stated that no improvements were necessary.
Investing in robust financial planning solutions is an investment in a manufacturer’s future. By optimising financial processes, manufacturers can access real-time insights into their financial performance, empowering them to make informed decisions based on data and enhancing operational efficiency.
In addition, well-established financial processes guarantee precise financial reporting, which is crucial for attracting investors, ensuring compliance with regulations, and nurturing trust among stakeholders.
It’s about time the industry sought an upgraded approach to finance. This article discusses specific topics, including:
- Understanding the crucial need for an efficient financial close process to consistently ensure the accuracy and completeness of financial statements.
- Harnessing the power of data to drive smarter, more informed decisions. Manufacturers can make better decisions on resource allocation, investment, and operations by using data to track key metrics and identify trends.
- Identify and track key metrics critical to your business, such as revenue, cost of goods sold, gross profit, operating expenses, and net income.
- Using technology to improve financial processes is valuable. AI-powered tools and other technologies can automate tasks, improve accuracy, and provide valuable insights.
To learn more on why manufacturers should focus on finance and transform their FP&A processes, get in touch with our experts today.
Credit: This article is a summary of When Manufacturers Should Focus On Finance by Grant Thornton
