The role of a CFO is becoming increasingly strategic, propelled by a disruptive and volatile environment globally. Longer-term perspectives are changing, as are broader information needs, thereby changing the disclosure and reporting requirements. It no longer is just about financial scorekeeping.
Demand for a New Perspective Post-Covid
Successful finance teams now have to operate as strategic business partners, using data-driven insights gained from predictive modeling and advanced analytics. Leaders need sharper technology tools to stay ahead of the competition and accelerate decision-making. The role of integrated thinking and reporting has never been more important in pushing for business transformation and building resilience against future crises.
For instance, the pandemic revealed that many businesses were lagging in areas like cash positioning, forecasting, and agile scenario modeling. In an April 2020 survey by the UK Office for National Statistics, 30% of businesses reported they had less than 3 months of cash reserves, and 82% paused trading temporarily.
Modern Integrated Enterprise Tech Companies Need to Go Beyond the Usual
Modern integrated tech providers today offer a range of solutions to help small and medium-sized businesses to automate and integrate everything from sales and purchasing to warehouse management, accounting, and reporting. These systems can integrate Microsoft Excel with ERP and accounting software solutions to provide access to operational and financial reports in real-time across all modules.
However, they don’t function as a financial ecosystem. In absence of a single developer-friendly API, they cannot provide end-to-end business banking to their clients. Let’s look at this issue in detail, through the example of one of our clients.
The Case of the Integrated Tech Provider Who Needed to Broaden its Offerings
Our client, a SaaS-based technology provider, reselling an accounting solution to businesses to help them drive operational efficiency, transparency, and better business outcomes. The company’s reporting software gave users a simpler and faster mode of report creation, even if they didn’t have ERP. Small businesses could access advanced reporting using Excel sheets, across multiple data sources with automated consolidations and flexible report formatting.
Some advantages that the company’s proprietary tools offered include:
- Accelerated Time-to-Value: Quick business reporting, that provided valuable insights.
- Centralised Data Access: Integration with different systems and simplification of solution deployment.
- Accurate Reporting: Getting rid of discrepancies and risk of missing deadlines.
- End to Tedious Manual Reporting: Users could connect Microsoft Excel with ERP software to create complex reports in real-time. No more manual data entries.
However, the company was aware that the target segment, the SMEs, needed more than intuitive reporting tools. They required better business banking facilities. They were dealing with multiple banks for varied reasons. For instance, some of them were getting corporate cards issued from one bank and linking it to working capital provided by another.
This meant a nightmare for the accounts and finance teams during month-end reconciliation. The company’s clients were facing issues especially when transaction volumes were higher. The more their business grew, the more complex it was becoming, and the only way to tackle it was to recruit more people within the finance team. This made business banking expensive.
The company wanted to expand its offerings by helping clients to automate their reconciliations and linking their banking capabilities with the accounting solution. That way its clients would save precious time on accounts payables and receivables, without the need to increase their human resources.
How Fyorin Helped
With Fyorin, tech solutions companies can now offer business banking to clients. Here’s how we helped the company stand out from the rest:
A Treasury Solution for Clients
Through Fyorin’s solution, the company’s SME clients can access multiple financial products and services from different banks, all under one hood. This is done through the Fyorin Network, which connects several banks and financial providers into a single network. Through a single developer-friendly API or a web-based solution, clients can access the best of breath of financial products, across multiple providers, tailored for their needs, helping them better manage and control the money flow in their business.
Real-Time Reconciliation Tools and Customised Reporting
Fyorin’s Sub-Accounts feature enables businesses to segregate their receivables into different accounts automatically for better management of funds, rather than having everything in one main account. These Sub-Accounts cab mirror the cost-centers in the accounting ledgers. Through the use of APIs, our client company was able to connect Fyorin with its clients’ accounting solutions, making reconciliations a one-click process. In return, the time being saved on reconciliations could be spent on more strategic tasks.
With Fyorin and the client company’s accounting solution being linked together, payables could also be facilitated. Their clients are now able to pay their suppliers by initiating the process from the accounting solution, while the payment, in the supplier’s preferred payment method, is automatically distributed through Fyorin. This means that the company’s clients don’t need to log into different bank accounts to pay their suppliers.
Automating Payment Approval
By setting up multiple roles and permissions, the company and its clients can automate their payments. This not only ensures prompt and timely payments to various vendors, suppliers, and customers but also reduces operational overheads.
Fyorin’s client can thus bring an edge to its accounting solutions. More than that, it can move beyond just being an integrated tech provider to being a 360-degree tech solution provider. Through Fyorin, as a technology provider, it was able to reach more clients and bring additional value to existing ones.
Driving agility in business is the central theme for CEOs and CFOs in the post-pandemic world. When companies like resellers of accounting solutions, are able to adjust their offerings with evolving customer needs, businesses can be reinvigorated to grow. With flexible business banking tools, finance professionals have the ability to be more strategic rather than resort to manual tasks. Moreover, they do not need to waste time and resources hunting for the right financial products in the market.