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The demand for real-time information is only continuing to grow as businesses process an ever-increasing amount of data. To manage this optimally, finance departments need a way to streamline their various business functions into a single platform, improving data accuracy and accessibility.
We’re seeing organisations looking to integrate, or better still, consolidate their workplace platforms to streamline operations, reduce inefficiencies and improve decision-making. In some cases, businesses are moving from having around nine or ten platforms to just one. So, can we expect 2025 to be the year we see consolidation across enterprise resource planning systems (ERPs)?
The opportunities in merging disparate platforms into one
Managing multiple workplace platforms can lead to duplicated efforts, errors, and miscommunications. But a unified system reduces administrative burdens, allowing the finance team to focus on strategic tasks rather than manual processes.
ERP consolidation can also help spot trends within an organisation which may normally go unnoticed by management. If organisations and decision-makers have this data at their fingertips, they can make more informed decisions and ensure they are operating as a high-performing organisation.
A consolidated system will be able to create easy-to-read financial reports that enhance comprehension and meet regulatory requirements, allowing stakeholders to quickly grasp key insights and data without confusion. Well-structured reports will also improve communication across departments, fostering collaboration and ensuring that all team members are aligned on objectives and strategies.
We need to see systems that can handle treasury, cash flow and working capital management become more valuable. The challenge in creating a composable system lies in ensuring seamless interoperability between different data systems to avoid data silos and efficiencies. But the finance sector should see this as an opportunity, working to combine disparate systems into one platform to reduce complexity, enhance operational efficiency and provide a unified view of business processes.
Managing the new wave of regulation through streamlined processes
Finance departments also have a role to play in managing regulation changes across accounting and tax legislation. The implementation of systems such as Making Tax Digital is expected to evolve, aiming for more streamlined reporting and compliance for businesses.
Finance and accounting professionals are expected to push the industry to speed up the digitisation of tax systems, for example corporation tax. This is to ensure any barriers around implementation challenges, such as inconsistent technology adoption among banks and software vendors is mitigated successfully.
The increased scrutiny on fraud prevention and customer verification processes will drive changes in regulatory frameworks, necessitating better data sharing among financial institutions. Overall, adapting to change will be crucial for survival in the finance sector, especially when it comes to keeping up with evolving regulations. Implementing new technologies to support the compliance process will improve efficiency and accuracy, enabling finance departments to stay competitive and responsive to market demands.
Implementing change across a justifiably risk-averse business function
This move towards consolidation will require a mindset shift across a sector that is generally change resistant due to the perceived risks and disruptions associated with transitioning to new systems, especially given finance teams hold a wealth of sensitive information. But increased reliance on digital tools has highlighted the need for automation and efficiency in financial processes, and we can expect further investment in innovative technologies from finance departments over the next 12 months.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Tachat Igityan Founder and CFO at destream
03 December
Victor Irechukwu Head, Engineering at OnePipe Services Limited
29 November
Nkahiseng Ralepeli VP of Product: Digital Assets at Absa Bank, CIB.
Francesco Fulcoli Chief Compliance and Risk Officer at Flagstone
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