The Right Financial Management Systems Improve Business Resilience
The right financial systems can help your company build “business resilience.”
What comes to mind when you hear the term resilience? If you’ve ever walked through a forest and spotted a downed tree, you know the forces of nature can be quite powerful. They can snap a mighty oak in half. But from one half of the downed tree may sprout another, new tree. Such resilience is the ability to bend and change according to the circumstances at hand.
Your business must also be able to snap back with similar alacrity to the circumstances at hand. One little known fact is that the right financial management systems can drastically improve business resilience.
Businesses Tested by Recent Events
Companies were tested to their limits by recent global events. The pandemic that hit in 2020 was like the windstorm faced by the mighty oak. Some companies resisted shutdowns and telecommuting, and in the end, were slow to adapt to the new methods of work. These companies may have lost momentum or growth.
Others, however, who were able to adapt quickly to changing circumstances, found themselves able to shift with the wind like trees that bend in the storm. These companies found themselves able to continue operations with minimal disruptions. Some even grew where others did not.
Financial Management Systems of Resilient Companies
Aberdeen found that companies face similar pressures when it comes to business resilience. This is especially true of their financial management systems. The top pressures driving the need for resilience included changing customer needs, lack of collaboration with suppliers, an inability to react quickly to changing circumstances, and shifting business models to adapt to market trends.
This is where the right financial management system enhances resilience within a company. For example:
- Changing customer needs: The right financial management system can help your company adapt to changing customer needs. A good ERP system such as Acumatica ERP can be adapted to handle custom orders, for example, or shipping the contents of one order to multiple locations. Such data tracking can help your firm adapt to rapidly changing customer needs and specific customer needs.
- Collaboration with suppliers: Another way a good financial management system helps is by facilitating collaboration with suppliers. Often an ERP system can connect suppliers, distributors, and manufacturers in such a way that everyone along the supply chain can view the progress of an order. This data sharing fosters collaboration by enhancing communication.
- Reacting quickly to changing circumstances: With the information obtained from an ERP system, manufacturers can react immediately to changing circumstances. Timely, accurate, and fast information means decisions can be made more rapidly and with greater certainty than before.
- Adapting to shifting business models: Reports from ERP systems provide up to the minute information on all aspects of a company’s operations. This data can be used by your management team to enhance business insights and help them solve problems, adapting to newer business models, offering additional product and service enhancements, and more.
Improve Your Business Resilience This Year
If the past few months have taught business owners anything, it’s that they must be constantly vigilant to changing circumstances and react quickly. Having a financial system that is resilient is one way to offset the challenges caused by marketplace uncertainty. Adapt, and you’ll find a way to thrive.
If you’re ready to take the next step and improve your systems, contact Mindover Software for more information. Visit our website and view our ERP systems. Then, contact us or call 512-330-3994 for an appointment.