GAAP still has a role to play in financial reporting, but it's no longer the most important set of metrics for today's businesses. For today's forward-thinking CFOs, the real work involves looking beyond finance to facilitate every strategic advantage possible.
A strict focus on GAAP is necessary for regulatory compliance, but in the larger scheme of things it's just one responsibility for finance departments to manage. And, increasingly, it's become a responsibility that requires minimal input and oversight. Many financial applications have made GAAP adherence almost automatic. That means companies need to look beyond basic accounting functions to give themselves a competitive edge.
CFOs now rely on sales, marketing, logistics, and operations data to locate opportunities for improvement and advancement. It is only natural that this role falls to the accounting department, because ultimately every strategic decision has a financial component. The accounting department makes sense to act as the first filter for most ideas and initiatives.
What is important to focus on, however, is that opportunities are not inevitable. And unless accounting departments have the tools necessary to manage vast and varied data sets, strategy is going to suffer. These are the necessary components:
- Centrality – Bringing different types of data together under one umbrella is key. Effective decision making is impossible unless every variable is being considered. Having a central dashboard for all data ensures that no fact, figure, or feature is overlooked.
- Flexibility – CFOs are already dealing with vast amounts of data, and the total is only going to grow and evolve over the near-term. Quality data management tools are scalable and adaptable enough to meet the changing requirements of modern accounting departments.
- Functionality – Data is overwhelming without tools that can automatically give it form and function and intuitively allow users to engage with it. The overarching goal is to move beyond data management and on to data optimization.
- Predictability – The C-Suite expects the accounting department to provide forecasts and predictions to guide their decision making. Tools designed to extract insights make it much easier to leverage the value of data and trust the conclusions.
Finding a single solution that offers everything without neglecting GAAP is now possible thanks to Sage Intacct. This next-generation ERP has been explicitly engineered for accounting departments ready to take a strategic role. But in the process, it does not lose sight of the practices and policies that are still essential for accounting.
Intacct has become a leader in ERP by providing an upgrade without a disruption. When you are ready to learn more, contact AcctTwo to consult with an in-house expert.