How CFOs can tackle complexity of multiple different processes and systems across countries & business units

Working in the CFO office today equals juggling with complexity

As companies grow, systems and business processes are often not the first concerns of top management. Typically, the CFO office and IT team are responsible for sorting these issues out — frequently with very limited resources and budget, against a backdrop of complex legacy issues.

When companies acquire businesses, enter new markets, or launch new ventures, this just adds complexity to the puzzle the CFO office and IT teams need to solve. The landscape becomes cluttered with systems from different eras and a variety of differing processes to manage.

Then there's the "people element". People tend to like doing things their own ways and often resist change, leading to diverse ways of doing things — sometimes with a defined process, but often without. This can result in key personnel having even less time to "sort it out" as they chase after people, information, and numbers just to manage the basic operational tasks.

Operating in multiple countries multiplies complexity

As if that weren’t challenging enough, legislation and market requirements also play a crucial role, setting ever-changing demands—especially now, when new requirements for e-invoicing and tax reporting are constantly emerging worldwide. This may necessitate new integrations, reporting to authorities, and specific invoice formats, among other things. Not easy!

CEO and the board ask for even more

CEOs and board members typically don't focus much on systems and administrative processes—and rightfully so. Their time is better spent driving the core business. However, they do care about competitiveness, scalability, and profitability, which directly tie into the administrative processes and systems that the CFO office and IT need to solve. At times, they also become excited about new technologies like AI to ensure future competitiveness, potentially leading to additional projects for the organization!

Is it an impossible task?

So, we face a myriad of demands: running operations, staying compliant, improving scalability and competitiveness, and implementing new technologies. This often occurs against a backdrop of a tight budget, substantial legacy issues, and severe resource constraints. Where to even begin, especially when you might lack the necessary knowledge about all the legal and compliance requirements, possibilities, and available technologies?

Changing anything in the current ERP and business systems landscape has proven to be incredibly costly, slow, and risky. Even colleagues in other companies and the news confirm it's extremely challenging, and many have failed. "Don’t take on an ERP upgrade project; it can risk your entire career!" is not an unheard advise.

Picking the best from less-than-ideal alternatives

Fortunately, there are strategies to try and tackle the challenge, each with its own issues and benefits. The table below summarizes three common approaches companies can take:

What if there is an option that takes the best of all these approaches?

Actually, there is something close to that! It is often overlooked but is also becoming an increasingly popular approach to flexibly meet the changing demands of country capabilities & compliance, improved visibility, and more automation. It is based on extending almost any ERP's capabilities with best-of-breed solutions that integrate easily and cost-effectively to the existing core ERP infrastructure, regardless of its complexity, age, or brand.

Sounds too good to be true?

Read more on why it might be a better approach to combine your ERP with best-of-breed AP & AR solutions and how it also decreases major business risks.