Why Financial Management Is Important, And Why Organizations Are Moving To NetSuite Cloud Financials?

The popularity of Oracle NetSuite is unstoppable as of now, as more than 26,000 companies (2016 data) are using this Cloud based ERP, and the numbers are growing at an unprecedented scale. Due to its impeccable track record and popularity, Oracle NetSuite recently won the 2020 Gartner Peer Insights Customer Choice Award for Service-Centric ERP Solutions.

A vast majority of Oracle NetSuite’s customers have opted for the Financial Management module, since this True-Cloud ERP module simplifies and automates critical financial processes, and thereby, gives the control back to the management.

In this blog, we will discuss the importance, objectives, and scope of financial planning and management, and how Oracle NetSuite is helping organizations all over the world in leveraging the power of Cloud ERP for the same.

Importance Of Financial Planning & Management

The purpose of any organization is to generate profits, and to comply with the laws governing that business and sector. Entire operations and activities of an organization revolves around these two critical factors, and financial planning and management is the exercise which ensures that these two objectives are fulfilled.

A successful financial planning involves the top management and financial managers to access relevant data, and take decisions which will yield more revenues, more profits and more stability for the business, while complying with business and tax related laws.

Without financial planning, an organization is like a traveller without a map or a ship without navigation.

Financial planning and management tells the management where they are, where they will be going, and how soon they can reach there.

Objectives Of Financial Planning & How Oracle NetSuite Can Help

Optimizing Revenues & Profit

As shared earlier, a business exists for making profits, and this is the core objective of any financial planning and management exercise. Oracle NetSuite helps in fulfilling this objective, by providing invaluable insights and real-time data which empowers the management to take the right decision, at the right time.

For instance, if the management is aware about the rising cost of raw materials, then they can take the decision to increase the cost of goods sold, so that there is no dent in the margins, and profits don't suffer.

Monitoring Liquidity & Cash Flow

If the management loses track of cash flow and liquidity position, then it means losing control. Unless you are aware of the exact cash flow, how can you make the right business decisions and fulfill your obligation?

With NetSuite, monitoring and tracking cash flow becomes easy, and impactful with real-time insights into account receivable, inventory value, investment returns, negative cash flow and more pointers.

Strict Compliance With Govt Laws & Tax Rules

Ensuring that the organization is complying with Govt rules and tax related laws is an integral part of financial management, and Oracle NetSuite has the perfect solution for the same.

With automated tax reporting and auditing, the entire tax related process can be made seamless, and with automatic updates about tax changes and business laws, your organization will never be caught off-guard.

Predictions & Forecasting

Financial planning and management is incomplete, if it can’t predict the future when it comes to revenue generation and expenses to be incurred for running the business.

With Oracle NetSuite, this is no more a guess work: Using the power of advanced AI algorithms, your sales team can create sales projections for the next quarter or prepare a budget for the entire year. Oracle NetSuite will decode the current trends, market behavior, use your historical sales data, preferences of your customers, to generate accurate financial scenarios for making fast business decisions.

Accountability Towards Investors & Board Of Directors

An important role of financial planning and management is to instill trust among investors and Board members about the current state of the organization, and the path towards which it’s moving.

With Oracle NetSuite’s Financial Management module, this essential objective is fulfilled via accurate, up-to-date reports that showcase the precise state of the organization in terms of revenues, profits, losses, future course of action and resource utilization.

Every business report created on NetSuite is based on real-time information, with the live & accurate numbers showcased via interactive dashboards and infographics.

And this instills more trust and more value.

Scope Of Financial Management

Any financial planning and management activity encompasses four main scopes: Planning, Budgeting, Managing and Accessing Risks.

Without planning, how can the operations team allocate resources for new projects, how can the logistics team determine their deadlines and how can the procurement team finalise the incoming raw materials? Planning becomes the lever based on which the entire business is operating.

Without budgeting, it becomes impossible for the management to allocate necessary funds for critical activities such as business growth, marketing initiatives and recruitment activities. Budgeting becomes the framework based on which the entire financial management is based.

And finally, risk management, which is the defense shield for the organization against market fluctuations, bad credits, doubtful investments and operational hazards. Managing and accessing risks removes unpredictability from the business processes, and protects the business from unforeseen events.

Based on the True-Cloud platform, Oracle NetSuite is empowered to not only support these scopes of financial planning, but also optimise them, and streamline the processes.

Oracle NetSuite’s powerful financial modeling engine combined with real-time data and AI-powered prediction and forecasting capabilities will ensure that all your financial management and planning requirements are met, and exceeded.

Inspirria can help you understand the advantages and USPs of Oracle NetSuite Financial Management module, and enable you to decode why more and more companies are opting for a Cloud-based financial process.

Click here to schedule a free, no-obligation consultation for your business by our expert Oracle NetSuite Consultants, and kickstart the process right now.