8 Financial goals for a business in 2022
We are all currently living in a world typified by rapid modernization, the rise of digital giants, and an overall shift towards more technology-driven lives. As a direct consequence of this, most parts of our traditional way of life have found themselves becoming increasingly redundant. These changes are especially relevant for your finance team.
When you’re the manager of a relatively small-scale organization using traditional forms of financial management might seem alright. But, what happens when you’re responsible for managing the finances of a big organization? Using spreadsheets, paper receipts, manual invoice processing, etc. is error-prone, time and labor-intensive, and not at all efficient, especially when dealing with large amounts of data.
In light of this, it becomes quite logical to believe that traditional forms of financial management do belong to an older generation. If you are looking to overcome the drawbacks of outdated systems, modernize your operations, or, try to find efficient ways to get the most out of your business you definitely need to revamp your finance team's objectives to suit this era. How to do this? Let’s find out.
As we move into 2022 there are a whole lot of new, exciting improvements that have graced the finance world. The faster your finance team can sync with and adapt to these novel changes the better your business performance will be in the foreseeable future. Here’s a look at some of the financial goals for a business and the objectives that your finance team can incorporate into its systems:
● Increase confidence in forecasts
No matter how you look at it, being able to have a comprehensive, accurate, and constructive business performance forecast can come as a huge boost to your finance goals. However, formulating a truly effective forecast is easier said than done.
Traditionally, performing a financial forecast would mean hours of labor and extensive digging for your finance team. It would involve manually compiling financial performance reports of past years, meticulously scrutinizing the numbers, crunching these numbers, establishing performance estimates, and then estimating an approximate forecast for the coming year.
Not only is this process time-consuming and labor-intensive it is also prone to errors caused by misplaced data, incorrect calculations, or basic human negligence. Therefore, they don’t really exude confidence. Your objective for the coming year should be to change this.
By adopting expense management platforms, like Volopay, you can automate nearly all of these steps. Expenses are recorded in real-time, reports are created by the software itself, and data is never lost.
● Aim for data in real-time.
Our world is operating faster every day. As digitization continues to expand its influence on our lives the need for up-to-date data and immediate actions has never been greater. The same applies to your business’s financial performance.
Gone are the days when waiting months to compile expenses was okay. Now, the need of the hour is real-time data. If you want to be ahead of, or at least at par with, your competition you need to introduce modern data-tracking tools to your finance team. Not sure how to do this? Volopay’s your best friend.
The system’s software is capable of tracking, notifying, and logging any and every expense your company or an employee makes in real-time. The software’s automated features ensure this data is error-free, air-tight, and recorded as and when they are made.
Related read - How to streamline business expense reporting process?
● Reduce the amount of friction
While maintaining control over finances is a necessity, too much control can lead to difficult procedures for employees to follow. The best example of this can be seen in the way a company card is used.
Traditionally, if a situation arises where an employee needs to make a purchase using the company card they will have to manually submit a purchase request to the finance team, or sometimes even the CEO. Once a request is submitted the expense approving authority will have to vet the expense, approve it and then hand over the card, if the expense even is approved. This system has been the root cause behind a lot of friction across companies.
To overcome this the best approach is to avail the services of corporate card providers. Volopay’s cards, for example, can be issued as both physical and virtual cards. These corporate cards come equipped with tools that let your finance team set spend limits, verify expenses, track spending in real-time, and set custom parameters for auto-approval. If that’s not enough Volopay corporate cards also come with cashbacks on forex transactions.
● Create easy spending processes
The easier spending processes in your company are the faster, more efficient your operations will be. The same goes for your approval workflows and payment methods.
Setting easier spending processes that work well with approvals and payment methods is definitely one that should be a part of your finance team objectives for the year 2022. The need for faster, more efficient spending is a marker of this era. Purchase requirements can arise unexpectedly and frequently and must be satisfied within a particular timeframe. Having to submit a formal request and then waiting for it to be approved, if it is, can be detrimental to your ability to meet these needs in time. Therefore, creating a spending process that is fast, easy, and secure should fit into your finance goals.
Additionally, how efficient your spending is will also depend on how easy your approval and payment systems are. There is no use in having an easy spending system if the approval of the expense and subsequent payment of the amount is slow and tedious. Spend management software, again, is a great way of helping you balance these elements.
● Faster book closing
Month-end book closing has long been the cause behind many nightmares for finance teams. Consolidating and integrating data from a whole array of different sources can be an arduous task.
The primary obstacle here is reconciling the data from the many systems they come from. However, this is where automation earns its bread. Accounting automation software, e.g. Volopay, eradicates the need to manually enter data. No matter how many sources of expenditure there are if they are all conducted on one unified platform that is capable of managing book closing without errors, then the need to enter the same manually into your books goes out the window.
This is especially pertinent as you continue scaling a business, the numbers will continue to grow but the effort needed to manage the same will not, and neither will the time taken to close books.
● Accurate accounting
Maintaining accurate financial records is one of the most important tasks of a finance team. Having accounts that are up-to-date and audit-ready can save your company a lot of time, money, and legal trouble. However, ensuring your company’s accounts are accurate and air-tight is easier said than done.
Your finance team should aim to maintain accounts fast but at the same time ensure they are as comprehensive and error-free as they can be. Doing this manually, consistently, and in real-time is easier said than done. As we transition into the new year you should also consider transitioning to a system that can do all this without you having to break a sweat.
● Make cohesive financial systems a priority
Constructing and prioritizing cohesive financial systems is more of a principle than an actual objective. The more complicated and diverse your financial systems are the harder it will be for your employees to work with them.
Instead, if you move to an all-in-one expense management service like Volopay this issue is no longer relevant. Having one unified system that handles your company card, expense reimbursement, accounting, credit lines, etc. means there will be fewer systems and processes your teams will have to learn to operate.
Lastly, a key objective your finance team should look to achieve in 2022 is streamlining its reporting processes. Finance teams need data to work. The faster your teams can get their hands on data the sooner they can act on it.
Accurate financial reports play an important role in analyzing the current status of funds, sources of revenue, and expense routes. These reports are important to making business decisions. Therefore, you should aim to adopt systems that enable efficient reporting that is also informative and comprehensive. Moreover, if you really want to stay ahead of the curve, you should ideally perform your reporting through an expense management platform.
Over time, the way a finance team goes about its job has been constantly evolving. As the world continues to develop so will the techniques and systems that govern financial management.
Above everything else, the one skill that is going to help you and your teams navigate this continuous state of growth is adaptability. Therefore, the best asset you can acquire to set yourself up for current and future developments is a system that is capable of being tweaked and updated. And, of course, what tool takes updates better than software.
Expense management platforms are specially tailored to fit this requirement. So, the primary objective you should set yourself for this new year should be to acquire software that simplifies your finances. And, at Volopay, that’s our very goal - to simplify and make expense management easy. Interested to know how you could make this work for you? Schedule a demo, let our teams give you a thorough walkthrough of how we’ve been revolutionizing company finances across the world.