The treasury function in finance departments doesn’t get a lot of attention, but it’s a fundamentally important one: to ensure that all funds are accounted for and that there is sufficient cash on hand each day to meet operating requirements. Keeping track of and managing cash, especially in larger organizations, can be complicated because of multiple bank accounts, complex financing requirements and various methods of receiving and making payments; the complexity deepens when more than one currency is used across multiple jurisdictions, which also can pose regulatory issues.
Workday Financial Management (which belongs in the broader ERP software category) appears to be gaining traction in the market, having matured sufficiently to be attractive to a large audience of buyers. It was built from the ground up as a cloud application. While that gives it the advantage of a fresh approach to structuring its data and process models for the cloud, the product has had to catch up to its rivals in functionality. The company’s ERP offering has matured considerably over the past three years and now is better positioned to grow its installed base. Workday recently added Aon, the insurance and professional services company, to its customer list (becoming its largest customer to date) and reported that its annual contract value (ACV - the annualized aggregate revenue value of all subscription contracts as of the end of a quarter) has doubled since the second quarter of this year, albeit from a low base. This is an important milestone because for years the company’s growth has come from the human capital management (HCM) portion of the business, not financials. Workday has around 160 customers for its financials (more than 90 of which are live) compared to more than 1,000 customers for HCM.
Topics: Microsoft, SAP, ERP, FP&A, Human Capital, NetSuite, Reporting, close, Controller, dashboard, reconciliations, report, Tax, Operational Performance, Analytics, Business Intelligence, Business Performance, Cloud Computing, Collaboration, Financial Performance, IBM, Oracle, Uncategorized, Accounting, CFO, Data, Amazon, BI, Financial Performance Management, FPM, Intacct, scorecard, Spreadsheets, treasury
Whatever Oracle’s cloud strategy had been the past, this year’s OpenWorld conference and trade show made it clear that the company is now all in. In his keynote address, co-CEO Mark Hurd presented predictions for the world of information technology in 2025, when the cloud will be central to companies’ IT environments. While his forecast that two (unnamed) companies will account for 80 percent of the cloud software market 10 years from now is highly improbable, it’s likely that there will be relentless consolidation, marginalization and extinction within the IT industry sector driven by cloud disruptions and the maturing of the software business. In practice, though, we expect the transition to the cloud to be slow and uneven.
Topics: Microsoft, Predictive Analytics, Sales Performance, SAP, Supply Chain Performance, ERP, Human Capital, Mobile Technology, NetSuite, Reporting, close, closing, Controller, dashboard, reconciliations, report, Tax, Customer Performance, Operational Performance, Analytics, Business Collaboration, Business Intelligence, Cloud, Cloud Computing, Collaboration, IBM, Oracle, Accounting, Business Performance Management (BPM), CFO, Data, finance, Financial Performance Management (FPM), Amazon, BI, Financial Performance Management, FPM, Intacct, scorecard, spreadsheet, treasury
Many senior finance executives say they want their department to play a more strategic role in the management and operations of their company. They want Finance to shift its focus from processing transactions to higher-value functions in order to make more substantial contributions to the success of the organization. I use the term “continuous accounting” to represent an approach to managing the accounting cycle that can facilitate the shift by improving the performance of the accounting function. Continuous accounting embraces three main principles:
Topics: ERP, Reporting, close, closing, Controller, dashboard, reconciliations, report, Tax, Analytics, Business Intelligence, Business Performance, Cloud, Collaboration, Financial Performance, Accounting, CFO, Data, finance, Financial Performance Management, FPM, scorecard, spreadsheet, treasury
Our recently published Office of Finance benchmark research assesses a broad set of functions and capabilities of finance organizations. We asked research participants to identify the most important issues for a finance department to address in a dozen functional areas: accounting, budgeting, cost accounting, customer profitability management, external financial reporting, financial analysis, financial governance and internal audit, management accounting, product profitability management, strategic and long-range planning, tax management and treasury and cash management. Among the key findings is this: Not using the most capable software is an underlying cause, often unrecognized, of process, analytics and data issues.
Topics: Mobile, Planning, Predictive Analytics, ERP, FP&A, Reporting, Self-service, Budgeting, close, closing, computing, Controller, dashboard, planning and budgeting, report, Tax, Analytics, Business Intelligence, Business Performance, Cloud, Collaboration, Financial Performance, Accounting, CFO, Data, finance, BI, Financial Performance Management, FPM, Microsoft Excel, scorecard, Spreadsheets, treasury