E-Finance, management tool for non-financiers!
The term e-finance refers to financial activities carried out electronically, for example via the Internet. But this term has also another essential meaning which can be very important for managers. E-Finance is a term that defines access to financies of the company and greater accessibility means better internal reporting and better managing.
What is the general situation in Macedonia and the region on this issue? Often managers in the region receive financial analysis for the year before the end of February next year. Based on such financial analysis, next steps are determined in the year that has already passed 15%. The most appropriate comparison of this is sailing a schooner and a map. The situation of managers in the region, can be compared with checking the compass once a year,and on the basis of that examination, the captain looks at the map and manage the ship without any control another year. A good sailor, and a good manager in this situation knows that different kinds of dangers are hidden, so they find side roads to avoid shipwreck. These side checks save the company. Often managers use simple methods such as:
– comparison of cache account – this time last year and today
– comparison of open demand and liabilities
– value of basic resources 1 year ago and today
– finished goods inventory today
– sales last year and this year
But all these methods do not provide the exact location of your boat. These methods will only tell you if you’re floating in shallow water,if you’re surrounded by cliffs and what kind of dangers you have today. This information will not help you float safely nor avoid troubled waters – any experienced sailor does not solve problems, but he avoids them on time.
But this raises the question – how a manager who is not an economist by education to use financial parameters in his work. Should each manager also be an expert in finance? Certainly knowledge of finance will help, and managers should have basic training in finance, but E-Finance as a technology today is the bridge over which managers come to collect the information they need without having to become financial experts.
How E-Finance can help a manager today? What is the difference between e-finance and finances of a company? The answer is AVAILABILITY AND PRESENTATION! In other words, E-Finance provides open access to financial data for managers in the company. This data is available at the moment of decision making , and managers can easily monitor the financial effects of their decisions. The data that managers receive through E-Finance are presented in a way that every manager can understand. Instead of mumbling long reports, tottaly fussy for managers, e-finance offers simple reviews, short tables, graphs – by which managers receive the data they need..
E-Finance Managers provides a wide range of information, such as:
– Comparation of the planned budget of the firm with the cumulative implementation from the beginning of the year
– Condition of the tax in the current period – as an indicator of the tax liability that will occur at the end of the period (for example end of month)
– Prediction for coverage on sale with stock in the warehouse for the timely ordering new Qty (neither too early nor too late)
– Index of profitability in work
– Index of accounts receivable – graph with the average number of days for recovery
– Allocation of funds owed to the company into several groups and their display in different colors
– Instant overview of all the accounts of the company without constantly asking аccounting
– Graph of sales by month and by departments in the company
– Review of the profitability of projects
– Review of the profitability of the sectors in the company
When such information will become available and quality presented significantly increases the transparency of the way the company is working.Instead of prejudice and decisions like “as gut tells me,” avoiding any risk in operation – there will be analytics and facts. The company feels the benefits very quickly,it becomes stronger, more bolder in business and begins to be more innovative on the market. Introduction of E-Finance can significantly change the company for only half a year.
“The experiences of the introduction of E-Finance in Macedonia and the region are very interesting. Interesting are the comments of managers who are very grateful after the introduction of E-Finance in their company. Usually they say that for the first time they know the actual state of their company every day of the year. The growth of companies which have introduced e-Finance is remarkable, and the results only confirm the need for this management tool. I would especially like to emphasize that e-finance is not a tool only for the first man in the company. E-finance is a tool that can be used by every manager in the company, of course with proper configuration, each manager can only receive his set of data – which he needs in daily operations “- Georgi Nikolov, one of the most experienced consultant in Macedonia with 25 years of experience in the implementation of modern management tools.
What is the way for the introduction of e-finance in a company? What should a company to introduce this management tool? The first step is certainly a decision that this is necessary for the firm. The next step is the implementation of quality FINANCE SOFTWARE in the firm which contains tools for non-financiers. The third step is to create a control dashboards for any manager in the company. The fourth step is to provide access to information for managers in the company. Experience of Incom is that this whole process, from the decision to introducing the E-Finance, to the first benefits in an organization takes about 3 months. It is the period after which the company begins to visibly change and improve.
Incom team has experience in introducing e-finance in a considerable number of companies in Macedonia, Kosovo and Albania. The results are excellent reason and invitation for all companies to join.The investment significantly reduces risks in thebusiness, especially in stormy weather.
Incom team, 15/11/2015