In last week’s article we demonstrated the importance of thorough data reconciliation to businesses catch up here. We discussed how accounting errors can have significant financial implications for your business and could severely damage your company’s reputation.
However, with so many IT issues for CFOs to consider and allocate precious resources to, is reconciliation a high priority for enterprises?
Recently IT research specialists, Gartner, released the results of a study conducted on behalf on the Committee for Finance and Information Technology (FEI) into this Gartner webinar, Gartner FEI Technology Study, May 2012. The study aimed to gain the perspectives of CFOs & Finance Directors on information technology and its place within enterprise. As such Gartner surveyed 255 qualified financial executives between October 2011 and February this year.
One of the key findings of the study is that 44% of surveyed CFOs have grown their influence in IT purchasing decisions quite significantly over the last 2 years. One of the primary reasons for this growth in influence has been the need to ensure a good ROI on IT investment decisions. Some respondents noted that their IT had been mismanaged and needed closer aligning to the corporate goals and objectives.
What were the goals and objectives CFOs had for IT investment?
Forty-five percent of financial executives felt that their company’s technology needed significant improvement in order to lower operating costs. One particularly high cost to businesses is manual account data reconciliation – a task that can often take weeks, or even months, to complete. Good data reconciliation also helps to better manage business risk, a key goal for 33% of respondents, and helps ensure consistency between transactional data and analytics, a major objective for 38% of financial executives.
It came as no surprise, then, that ‘reconciliation management applications’ was listed as the third most important technological initiative for enterprises. Manual reconciliation can take a huge amount of time to complete and often results in an error rate of 0.8-1.8% – if you’re turning over £100m a year that’s the equivalent of between £800k and £1.8m potential risk. No wonder reconciliation management applications are such a high priority for CFOs.
Given the potential cost to benefit ratio and ease of installation we can only presume that many surveyed enterprises simply hadn’t yet discovered Adra Match’s solution. What this does mean, however, is that companies who have discovered and installed our automatic reconciliation software have already surpassed some of the key goals and objectives of up to 71% of companies surveyed.
Consider the competitive advantage your business would hold over even big enterprises if you could continuously and automatically reconcile your accounts in a matter of minutes to leave only the most challenging 5% to be completed manually. You would free up your staff for other activities, reduce operating costs, better manage your business risk and have much more accurate data for your business analytics.
To find out more about the Adra Match automatic reconciliation software why not book a free online Adra Match demonstration today?