Rick Yvanovich/Founder & CEO/
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Though these strategies inevitably evolve along with technology, companies can easily become locked into systems that are unable to adapt as the business changes and grows. Financial management technology strategies can be classified into the three broad categories.
In order to keep up with rapid changes in the business world, these 2 elements have been identified as crucial criteria to assess a change-supportive financial management system. Below is an excerpt from a TEC blog describing Infor SunSystems’ Unified Ledger and Smart Transactions components:
One of the steps in an effective IFRS implementation strategy is to assess the impacts of IFRS on the whole organisation. Reporting and disclosure (e.g., financial statements) are likely to be at the forefront of major changes.
IFRS transition is a business issue that touches all corners of the organisation from board involvement at the CEO/CFO level down to the business process layers. It is not an IT-driven initiative, as the interpretations of the legislation can be complex. However, technology involvement must not be dismissed.
Organisations that seek globalisation inherently face the challenge of managing their business operations in various locations. Hence, visibility into overall financial data and performance is of utmost importance. According to a study by Aberdeen Group in 2011, improving visibility is the most popular strategy companies use to aid their global expansion quest.
During the IFRS adoption, a company will make some simple and straightforward changes, such as adding a few extra accounts in its corporate financial systems so it can collect existing data in a different way. Other changes will be more challenging, requiring the company to change several business processes or, in some cases, redesign all or part of its financial system.
By Brian Hughes, senior business consultant, Infor Financials Brian Hughes
For many companies, especially those that have multinational operations, complying with International Financial Reporting Standards (IFRS) is synonymous with extra workload. Whether the company has already begun the adoption process or are bracing themselves for a major change, they should know that IFRS, in fact, are not as scary and daunting as they seem. Businesses should develop a mindset that faciliates IFRS transition by understanding key benefits of IFRS. The two primary groups that can benefit from IFRS adoption are:
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