Data for Management Decisions

Companies install sophisticated financial systems to manage the growth in number of transactions processed. How relevant are such systems for management decision-making? Have you analyzed that?

In addition to managing operations, are financial systems in your company primarily for accounting purposes – reporting and compliance? Or, do they produce meaningful data for management decisions?

Historical data for reporting captures results at a point in time, and even then such data is not always timely for current decisions. What is necessary is data for meaningful analysis (customer, market, revenues, costs, expenses, margins and so on) that facilitates appropriate decisions and action by management.

If financial systems do not produce useful data in managing your business, you need to review such systems and make changes such that meaningful information is produced  on a timely basis to allow more appropriate management decisions.

Ravi Patel

www.patelCFOservices.com

 

Published in: on January 15, 2013 at 4:08 am  Leave a Comment  
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Is your IT Infrastructure an Asset?

As Entrepreneurs grow their companies, their IT infrastructure needs to at least keep up, if not lead.

When the young company starts out, it is normal that the IT systems are built with a boot-strap budget. Entrepreneurs at that time need IT to effectively utilize human resources and keep both costs to a minimum.

As the company grows, the IT infrastructure needs to become a core asset to facilitate rapid growth and effectively network locations and employees. Technology adoption should be part of the growth and productivity strategy, not a reaction to increased workload and complexity of operations.

Entrepreneurs need to evaluate whether their IT infrastructure is an asset or a liability. If it is not the former, fix it otherwise it may crimp your growth plans.

Ravi Patel

www.patelCFOservices.com