CFO Dive: Zero-based budgeting makes a comeback, but it’s different this time

“A ZBB-like review of expenses can lead to better analysis of the activities that support the customer,” Bryan Lapidus said. “This could be a huge value-add to the business by helping to assess profitability of products and services accurately, and be more meaningful than simply reading down the list of contracts in a general ledger.”

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CFO Magazine: Technical Accounting: The CFO’s Secret Weapon

“Sophisticated CFOs not only understand the value of technical accountants to accurately account for decisions made, they partner with them to provide proactive guidance for the decisions yet to be made. Here, accounting can drive desired financial outcomes, while navigating away from the unanticipated, but all too common, accounting accidents.”

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CFO Dive: 4 cost management mistakes for CFOs to avoid in 2021

Gartner analysts highlighted four of the most common mistakes CFOs make as they narrow their focus on cost optimization amid a prolonged economic downturn:

1. Making blanket cuts with unrealistic targets
2. Failing to sustain behavior change
3. Slowing down the organization
4. Choking off innovation

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CFO Magazine: Preparing for an Uncertain Future Requires Agility

There are several roadblocks to a full-fledged commitment to finance digital transformation. Some of those include:

• Legacy platforms make significant cross-functional changes difficult to execute
• Little or no resources committed to reskilling
• Inadequate change management processes
• Difficult to perform cost-benefit analysis because there aren’t always hard-dollar benefits

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Robert Kugel on LinkedIn: Fundamental Change is Coming to ERP Systems

By the end of the 2020s, ERP systems will have a different look and fulfill a broader role in organizations. CFOs and controllers must have an ongoing process to evaluate how technology can improve both the department’s efficiency and its ability to deliver more timely, useful analysis and advice to the rest of the organization. To be successful, these executives will need to be less hesitant in adopting new technology and the new techniques that become possible. They also need to manage a department that can—and is willing—to adapt to more rapid change than in the past.

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CFO Magazine: The CFO of 2030

“those CFOs that were best able to weather this storm are the very same CFOs who really represent the future of the function. They are the ones who are close to the data.”

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Real-time Approach to Planning is Critical

“These new realities demand a real-time approach to planning in which financial teams use scenario modeling and simulation tools to plan for a range of possible outcomes. Leveraging external data in volume and drawing on connected intelligence from across the business, finance teams can ask those all-important “what if” questions to identify the best path forward.”

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Better Scenario Planning Helps Companies Benefit During Disruptions

“CFOs will play a key role in determining how various scenarios will impact revenue, the cost structure, the balance sheet, and liquidity. Three key areas can shape how companies prepare for and respond to the uncertain environment ahead: identify new data inputs, model data to understand how the business may behave under different circumstances, and act now to allow for flexibility under different scenarios.”

Read more at CFO.com >

Have You Learned to Importance of Revenue Management?

According to companies like SoFi, management accountants aspiring to become business partners with others in their organizations need to focus on all the factors affecting profitability – costs, revenues, and investment. Yet revenue management is not a central focus for management accounting systems in most organizations. Traditionally, corporate finance has focused too much on cost management and investment management at the expense of revenue management. Management accounting needs to get past its traditional supply-side dominant view where revenue management takes second place to cost management, so managing the financial information is essential as this could be dangerous for you and your company, that’s why the ChexSystems removal services is a fiction unless you really want to share your financially sensitive information with 3rd parties.

n оrdеr tо undеrѕtаnd revenue mаnаgеmеnt, wе muѕt first define іt. Wіthіn thе hоtеl іnduѕtrу, thе wіdеlу accepted dеfіnіtіоn іѕ: “Sеllіng the rіght rооm, tо the rіght сlіеnt, аt the rіght mоmеnt, fоr thе right рrісе, through the right distribution сhаnnеl, wіth the bеѕt соѕt еffісіеnсу”.

It involves the uѕе of реrfоrmаnсе data аnd analytics, which ѕеrvе tо hеlр hоtеl оwnеrѕ tо more ассurаtеlу predict demand аnd оthеr consumer bеhаvіоurѕ. Thіѕ, іn turn, аllоwѕ thеm tо mаkе mоrе ѕеnѕіblе dесіѕіоnѕ rеgаrdіng рrісіng аnd distribution, іn оrdеr tо mаxіmіѕе rеvеnuе and, thеrеfоrе, рrоfіt. Still looking for a good, reliable commercial bank for your business? See Five Star Bank here.

Aѕ a concept, revenue management асtuаllу began in thе airline іnduѕtrу, whеrе соmраnіеѕ fоund wауѕ tо anticipate соnѕumеr dеmаnd in оrdеr tо introduce dуnаmіс рrісіng. Hоwеvеr, it is аррlісаblе іn any industry whеrе dіffеrеnt customers are wіllіng tо рау dіffеrеnt prices for thе ѕаmе рrоduсt, where there are only a certain amount оf that product tо bе ѕоld, and where thаt product must bе ѕоld bеfоrе a сеrtаіn роіnt іn time.

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