Off the back of a report by The Hackett Group: 2024 Finance Key Issues 鈥� January 2024, The CFO Agenda by Shawn Fitzgerald, Jim O鈥機onnor and Tom Willman. Looking at the top three priorities I provided practical advice based on existing capabilities that organizations may be unaware of and could implement today.听 Below is a summary:听

The top 3 finance priorities for 2024 are hardly unexpected, with organisations continuing to focus on managing costs, gaining access to insights to support informed decisions making and securing听 working capital to execute plans. The key insights that I derived from the report are:听

1. Cost Management and Optimisation

• Finance increase workload will continue to create productivity and efficiency gaps 鈥� in other words we need to find a way to do more with less.听

• Finance are counting on technology to fill the gaps 鈥� currently high levels of dissatisfaction as not necessarily seeing expected benefits.听

• Wise to explore as part of a deliberate and sustainable cost reduction approach 鈥� expected over next five to seven years result in a 40% reduction in SG&A costs and staff

2. Cash Flow Performance, Liquidity and Working Capital听

• Cost of Working Capital is on the rise, with liquidity coming at a cost premium听

• Finance must optimize working capital 鈥� by focusing on strengthening supplier terms, inventory management and collections management.听

3. Data (Timeliness, Completeness, Reliability), Insights and Actionable Analytics听

• Organisations are not fully deploying data-related technologies听

• Staff need to be trained and upskilled on using tools听

• Need greater access to self-service and data discovery tools听

• Need to implement advanced analytics tools听

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With S/4HANA you have a technology that is designed to improve productivity and efficiency and drive automation it is important that you leverage the underlying technology and the functional capabilities so you don鈥檛 fall into a trap of not seeing the benefits of your investment. Below is a snapshot of the practical advice I shared:听

• Cost Centre Budget Availability Controls 鈥� new in S/4HANA is the ability to activate Budget Availability Controls on the Cost Centre. Once enabled this allows you to fully leverage the Cost Centre Budget Report.听

Fig 1 鈥� Cost Center Budget Report听

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• Situation Handling 鈥� proactively alerts users to exception events that require attention, proposing resolutions or automating the resolution process driving efficiency. You can see this in action based on a Goods Receipt/Invoice Receipt example: 听

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• Business AI 鈥� Joule is 麻豆原创s AI Copilot which is powered by Generative AI and designed to empower users in executing everyday tasks more efficiently. Launching this year, you can see an example here: 听

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• Cash Flow Analyzer 鈥� provides a clear cash position insights with visibility of future cash flows supporting the ability to make decisions.听

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• Embedded Analytics 鈥� with S/4HANA there are over 250 analytical apps that enable real-time reporting via self-service approach driving insights to action. We looked at the different styles of embedded analytics from Smart Business KPIS, Overview Pages, Analytical List pages, Multi dimensional Reports and Dashboards.听

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Fig 2 鈥� Example of Multi-dimensional report 鈥� Trial Balance听

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• Advanced Analytics 鈥� On top of the embedded analytics within S/4HANA introducing opens the opportunity to:听

• Use Just Ask 鈥� ability to ask questions in natural language and get answers using .听

• Predictive Planning 鈥� combining the planning with predictive forecasting to accelerate the planning cycle.听

• Time series Forecasting 鈥� predict future values of a series based on historical data.听

• Smart Predict 鈥� the ability to build trusted and actionable predictions without the need to be a data scientist.听

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For more information on these Advanced Analytics topics take a look at .听

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In conclusion, let’s break the mould and not be one of the companies in the survey that have invested in technology yet did not realise the expected benefits, instead let’s cultivate curiosity and explore the realm of possibilities. While I have imparted a few tips, they merely scratch the surface of what can be achieved. I encourage you to take the following steps:听

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• Take time to review the Fiori Application Library for Analytical Apps applicable to your organisation or role. 听听

• Explore the integrated Automations & Business AI that are currently available. 听

• Identify manual tasks and consider employing 麻豆原创 Build for automation.听

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By embracing curiosity and investigation, you’re one step closer to streamlining your finance processes and focusing on driving your business forward.听

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The Office of the CFO, since the early 2000鈥檚, has been challenged to transform and do our bit to stretch each dollar further. For many companies this has resulted in the optimisation of the finance workforce and outsourcing commodity functions of the finance department. The foundations of 鈥榳hy transform?鈥� has not really changed. These are:

• Reduce the cost of finance
• Improve compliance
• Become more agile
• Provide better experiences for customers and employees

What has changed is the:

• Cost of compliance continues to increase
• Finance is focused on moving from a back-office function to being a strategic business partner that helps to drive the business forward

For finance, the dilemma is how to make 鈥極ne plus One = Three鈥� as headcount investment remains flat, however the expectations of finance continue to increase.

To enable this, organisations are looking to emerging technologies to drive automation. A study back in July 2019 by the HacketGroup predicted 鈥淏y 2025, 15.1% cost improvements are expected from organisational and process redesign鈥� and 鈥淭hrough automation, the labour-induced process costing Finance will be further reduced by 19.2%鈥�

The acceleration of technologies and innovations in the market has increased considerably over the last four years since the report was written. As such, the potential opportunities to drive savings and efficiencies within organisations are plentiful.

So, how do we go about achieving 鈥極ne plus One = Three?鈥� We need to free up our most important asset the people to focus on the activities that drive the most value for the organization. To do this the answer actually looks more like People plus Technology plus AI equals Three Plus Plus.

For a long time, the objectives of finance transformation often felt just out of reach. For the first time however not only is it within reach, but we are also being challenged to think how we can apply these new technologies and innovations to help drive the business forward. The barrier now is the speed with which an organisation can adopt.

At 麻豆原创 we are focused on how we can help businesses 鈥楻un Better鈥�. With 麻豆原创 S/4HANA Cloud we have the latest technology platform and AI capabilities to help our customers achieve their finance transformations. In fact, over the last 10 years, 麻豆原创 has been focused on:

• New modern user experiences
• Redesigning business processes (eg. Continuous Close)
• Providing real-time analytics
• Embedded automation into business processes (e.g. Goods Receipt/Invoice Receipt (GR/IR), Accruals Management)
• Introduce Predictive capabilities.

In addition to the extensive capabilities 麻豆原创 S/4HANA Cloud offers customers, we are also investing in a Generative AI assistant to partner with our modern ERP. Recently, we launched a natural-language, generative AI copilot called Joule. Joule enables employees to ask a question in plain language and receive intelligent answers drawn from the wealth of data across a business for quick assistance.

Technological improvements are not standing still, nor are compliance requirements and 麻豆原创 is constantly looking for new areas to innovate and support our customers. We believe that the next evolution of the finance department is the partnering of People plus Technology Plus Artificial Intelligence to deliver a result that is greater than the sum of its parts.

The post Stretching Every Dollar appeared first on 麻豆原创 Australia & New Zealand News Center.

What is e-invoicing?
Mike started off the conversation to explain that is a digital exchange of invoice information between suppliers and buyers. It is done electronically, and it is not the same as sending attachments or PDF-based invoices. It is in a structured format. The purpose of e-invoicing is to provide a level playing field for everybody that plays in the supply chain, within the invoicing process. This includes small and large organisations.

Swapnil added that it’s not restricted to any particular type of organisation, it’s across the entire business landscape. It’s just a direct exchange of invoice related information between a supplier system and buyer system. And because of that, it helps enable quite a lot of automation and eventually, faster payments.

Swapnil suggested that the benefits of invoice automation include faster payments and improved cash flow, as well as increased efficiency and reduced administrative costs. It is not restricted to any particular type of organisation, and can be used across the entire business landscape.

Where to Start with e-invoicing?
Mike added that e-invoicing is an by talking to your and registering on the e-invoicing platform. You will then be able to send and receive invoices electronically.

Swapnil added that after you’ve confirmed that your accounting system is e-invoicing enabled, the next step is to register with a platform and start sending and receiving invoices electronically. This process is simple and straightforward, and most platforms offer helpful tutorials and guides.

What is e-invoicing week?
Swapnil explained the main purpose of which is on this week in Australia, is to create awareness of e-invoicing within the Australian business community, with the intent of encouraging Australian businesses to adopt e-invoicing. This will be facilitated by a number of events and communications being released through various channels, with the Australian Tax Office (ATO) playing a leading role.

E-invoicing has been shown to have a number of benefits for businesses, including reducing administrative costs, improving cash flow and increasing efficiency. As such, there is a growing demand for e-invoicing in Australia and businesses that adopt it early stand to reap the greatest rewards.

Comparing e-invoicing to the traditional invoicing methods
Swapnil explained that paper-based invoices involve the supplier issuing an invoice and printing it out to put in an envelope and send through snail mail. On the receiver’s side, they will have to receive it and address it to a particular contact. E-invoicing is a more efficient way of exchanging invoice data between suppliers, accounting financial management systems and buyers’ accounting financial management systems. It is faster, more secure and can be processed and paid faster.

Mike added that from a macro perspective, it is estimated that over a 10-year period, $2.8 billion is lost in productivity due to the manual processing of invoices. This is a significant amount of money that could be put back into the economy if this process were automated. Research and surveys show that small businesses can save $40,000 a year by making the switch to electronic invoicing. Other benefits include increased sustainability and faster payment times.

Costs of moving to e-invoicing
Mike added that the biggest cost for small businesses when implementing or e-invoicing is change management – getting customers and suppliers on board with the new system. The technology needed to support this framework is already built into many software packages, so the cost is mainly in terms of time and resources needed to implement the change.

Swapnil mentioned that from a cost perspective, it depends on the business needs. Some businesses may need to use a premium e-invoicing service, while others may be able to use a built-in e-invoicing service within their accounting software. The price of an e-invoicing service can vary depending on the provider and the features offered.

Changing the Way Business is Done in the Future
On the topic of how e-invoicing will impact businesses, Swapnil explained that e-invoicing will become much simpler with the advent of routed networks. Suppliers will no longer have to find out where they have to send an invoice, but instead the invoice will be automatically sent through to the intended recipient. This will save time and hassle for both suppliers and businesses.

The supplier experience would be greatly improved with the invoicing and invoice response functionality built into it. They would not only be able to send the invoice directly from their accounting software, but they can also see the status of the invoice within that system itself. This would provide a one-stop shop for the supplier, making it easier and more efficient for them to send invoices and check on the status.

Closing Thoughts
Swapnil explained that e-invoicing is a no brainer for businesses, as it is more efficient and can lead to faster payments. The New South Wales government acknowledges that some small businesses may not have accounting software, but encourages them to try out e-invoicing to experience its benefits.

The Supplier Hub Invoice portal is a service that allows suppliers to New South Wales government agencies to enter invoices. In the backend, these invoices are received as e-invoices. The will offer productivity benefits of $28 billion over the next 10 years.

To listen to the full conversation you can access the podcast recording via, or .

The post The Difference e-invoicing Can Make to Your Business appeared first on 麻豆原创 Australia & New Zealand News Center.

The future of business is paperless, and it is coming faster than anyone imagined, with the rate of automation having increased fivefold during the pandemic lockdowns. Old fashioned Accounts Payable (A/P) models of pieces of paper flowing through businesses seeking approvals, coding or additional information have rapidly become impossible to operate with the large scale Work from Home movement.

will only continue to gather momentum as more businesses recognise the inevitable. Tremendous improvements in are making the decision to transition to an automated solution easier than ever.

Businesses understand that they must have leaner A/P staffing to reduce overheads, and the productivity gains and enhancement from mobile, cloud-based A/P automation tools is now impossible to ignore. The repetitive nature of A/P processing and the inherent time-consuming drudgery involved can be eliminated, releasing the employee to move to more value adding tasks, improving both employee morale and productivity in a single stroke.

and into the future will both expect and demand that businesses utilise the most modern technology available to empower them to do the role to their upmost ability. Only by doing so will businesses be able to attract and retain the best talent.

What are the key factors in successful

Mobility 鈥� As the need for people to conduct businesses wherever they are (office/home/caf茅/interstate) only increases, so does the importance of mobile capabilities in systems increases. Such mobility enables managers to approve invoices wherever they are, vastly speeding up the process which improves organisational efficiency. The mobility factor gives decision makers within the organisation real time visibility into exactly what is happening which enables better decision making. Both cash flow and P&L forecasting are vastly improved.

AI driven automation 鈥� Another important productivity enhancement tool is to utilise increasingly sophisticated machine learning in the pursuit of improved productivity and accuracy within the finance department. From extracting and populating key data, suggesting account coding or even working out complicated departmental splits the utilisation of A-I to facilitate the speed of transactions is a key part of the automation productivity story.

Supplier portals 鈥� Another key enhancement which adds value both internally and externally is the ability to give key suppliers visibility and insight into payment information, saving time for an organisation’s staff in answering queries and improving and deepening the relationship between businesses.

ERP integration 鈥� A necessary and standard feature required to ensure productivity gains are achieved is a seamless integration into the ERP system. This ensures accuracy of data and allows the real time visibility provided by A/P automation to flow through the entire organisation.

Further benefits accrue to businesses in regards increased transparency of data, ease of data storage and retrieval, minimising time and cost of audit, enhanced accuracy and importantly, reduced risk of fraud.

The future of successful business lies in automation of key manual process to provide efficiency. To scale and grow profitably manual paper-based processing must end. offers the means to achieve this digital transformation now. The pandemic has only accelerated the process.

Access to all the experience and expertise 麻豆原创 Concur has gained in assisting thousands of businesses to go paperless and move business processes to the Cloud is only a click away, as you can . Act now and a digital A/P process and an improved business is as little as 6 weeks away.

The post The Critical Importance of Automating the Accounts Payable Function appeared first on 麻豆原创 Australia & New Zealand News Center.

From accounting to business processes, the growing unanimity among industry executives is that blockchain is likely to influence every significant area of work 鈥� and the change is already starting. In fact, some estimates found that blockchain could add $1.77 trillion to the international economy by 2030.

How it works
Blockchain automatically follows transactions from beginning to finish without conferring a major authority tasked with maintaining the transaction or encrypting the data without the necessity for human intervention. Rather, by categorising them, blockchain or NFT equips transparency around what’s happened in the history of the transactions. Moreover, because blockchain is immutable, this data is secure.

This ‘digital ledger’ permits developers and disruptors of NFT to flip the writing on typical organisational processes in different stimulating ways.

Intrinsically transparent, unchangeable, and decentralised, the technology presents more significant transactional security. Blockchains store data employ worldly math and software rules that are nearly incomprehensible for attackers to exploit. Each block added onto the chain holds a hard, cryptographic reference to the previous block. This reference is a complex mathematical problem that must be translated to get the following block into the network and chain. The technique constructs a uniquely encrypted digital fingerprint

Experts working in banking, agreements, settlements, or any enterprise process that implicates being a third party to marketing may be influenced by the increasing adoption of blockchain. Blockchain cryptology substitutes third-party mediators as the protector of the trust.

Blockchain can help lessen overhead expenses and hassles for enterprises or individuals when dealing with assets by mathematics instead of mediators. If you perform in this field, it would be smart to associate yourself with an in-depth knowledge of cryptocurrency or NFT assets created, transferred, stored, and confirmed on the blockchain to harness the possibility they suggest.

How blockchain is employed in the enterprise
Now that you understand the abilities of blockchain to transform the way businesses operate, it is necessary to recall on enterprises impacted by blockchain. Many individuals are keen to understand ‘how blockchain is employed in the enterprise?’ and a precise impression of blockchain applications in various industries can find the answer. Blockchain has been adopted across different enterprises with favorable outcomes over a period. Here is an overview of the additional blockchain business concepts which have been transforming unique enterprises.

The possibilities for blockchain-based businesses in the 麻豆原创 services sector are particularly promising. and have been reaching hand in hand for quite a lengthy time. Blockchain could deliver the exact function of banks by offering secure, digital, and inflexible ledgers.

Blockchain enhances accuracy and flexibility for data sharing in the financial services ecosystem as an evolution. Blockchain can disrupt the banking enterprise esteemed at over $4.8 trillion through disintermediation of key services delivered by banks, varying from authorisation and payment systems to expenditures.

The most prominent example of the leverage of blockchain in the banking sector is clear in Credit Suisse. It cooperated with New York-based startup Paxos to recompense US stock trades utilizing blockchain technology. In expansion, recognised names in the financial services ecosystem have demonstrated favorable examples of executing blockchain in business. For illustration, JPMorgan Chase launched into the blockchain domain with an NFT named JPM Coin to confirm transactions among institutional accounts.

Conventional banks and lending organisations typically provide underwriting for loans founded on credit reporting. The centralised system of credit reporting can depend hostile for clients. Therefore, different systems leveraging blockchain for the origination of cost-effective, safe, and efficient lending and borrowing can considerably facilitate the procedure. The cryptographic protection and decentralised database for prior payments could encourage clients to use loans according to a single international recognition score.

One of the prominent examples of blockchain applications in lending and borrowing employing cases is Dharma Labs. It is a protocol for allowing developers to design online debt marketplaces with the instruments and measures needed.

Another model of a blockchain-based technology impacting lending and borrowing refers to Bloom. It is a task focused on instructing credit scoring in the blockchain, emphasising the evolution of a protocol for governing risk, originality, and distinction scoring by leveraging blockchain technology.

The effect of blockchain trends, alongside the possibility of blockchain providing value in use cases across various enterprises, could enable any person to start their blockchain-based experience. However, it is essential to look for information on adjusting effectively to the wave of ‘blockchain evolution.’ With many enterprises encountering disturbance with blockchain business, administrators must meditate on the following pointers.

New enterprise setups established on the blockchain should capitalize on the uniqueness of social purpose as an effective agent of change. The current generation of clients is changing how businesses create and offer value. Therefore, blockchain business ideas should accentuate sustainability and other market parties selected by modern clients.

Stay tuned to learn more about how blockchain can improve business processes and find out some use cases you can leverage easily with this open source tech.

This article originally appeared on

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As part of 麻豆原创鈥檚 commitment to helping business become more resilient and agile in today鈥檚 challenging environment, the recent Forum provided free industry-specific webinars that explored how governments, business and the community can work together to drive a faster economic recovery.

The Forum was a follow-up to the inaugural Adaptive Strategies event in May, where industry advisors and executives shared their perspectives on the strategies that Australian and New Zealand organisations were taking in response to some of the challenges we have faced this year – from the bushfires to the global pandemic. Regardless of industry, common themes that emerged were; digital preparedness, the importance of collaboration, business continuity, keeping customers and employees safe, safeguarding supply chains, mitigating risks, and building resilience for future events. Members of our team in the Digital Transformation Office at 麻豆原创 Australia & New Zealand participated in these sessions and here are some highlights.

Adaptive Strategies in a Changed World ACCELERATED

Small and medium enterprise (SME) will play a pivotal role in getting Australia back to work, which according to the 2019 Small Business Ombudsman Report accounts for 35% of our national GDP and 44% of Australia鈥檚 workforce. The SME sector, much like larger enterprises, has been hit by three primary challenges 鈥� cashflow management, employee engagement/availability, and supply chain disruption.

To further understand how innovation and increasing productivity can foster growth in this sector, Hannah Baudert, Federal Government Director at 麻豆原创 spoke with the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Kate Carnell in the dedicated

For the , Anton Kroger, Director of Energy and Natural Resources at 麻豆原创 hosted a discussion with Angela Williamson, Partner at Integral Supply Networks Advisory, Sanjiv Manchanda, CEO for Atlas Iron, and Robert McCarthy, GM at Dyflex Solutions.

A key takeaway from this session was the importance of engaging with remote workforces and contractors while managing supply chains during this time of uncertainty. With ever-changing legislation and continued fears around the safety and supply of resources 鈥� both human and material, mining operators should utilise technology that helps keep its various stakeholders connected and compliant.

As highlighted in the discussion, it鈥檚 not just about reducing costs and maintaining business continuity but ensuring the productivity and wellbeing of various staff members, processes, and equipment throughout the product lifecycle. Miners should use this opportunity to take stock prior to digital transformation, understand business capacities and systems to ensure they鈥檙e aligned with overarching strategic goals.

Evan Mantis, General Manager for Consumer and Service Industries at 麻豆原创 introduced the with Steven Moraitakis, Transformation Lead for Consumer Goods and Retail at 麻豆原创, and Jackie Pearson, Executive GM for Business Transformation at Sigma Healthcare.

Ms Pearson which they kick-started due to the legacy 鈥榯echnology debt鈥� created across the organisation. With four separate ERP systems and a host of different applications that were highly customised, disparate, and not providing the necessary insights, Sigma Healthcare needed to optimise its technology and processes to operate more intelligently.

Moving ahead with their digital transformation program not only mitigated risk but broke down structural silos and unified all parts of the organisation, allowing staff to work more efficiently while creating value in multiple business areas. Currently in the process of evolving its ERP ecosystem to integrate all data touchpoints into a single platform with 麻豆原创 S/4HANA, Sigma Healthcare was able to withstand the COVID-19 disruption by relying on agile technology and its best in class distribution centres. Ms Pearson is fiercely powering through implementation remotely, emphasising the organisation鈥檚 ability to quickly adapt to new circumstances.

For the , Jonathan Fogarty, Utilities Lead Architect for 麻豆原创 hosted a panel discussion with Danica Lawrence, IS Lead Chief Architect for Powerco NZ, Rob Scott, Director and Principal of HR Strategy and Innovation at Deloitte, Aaron Green, Senior VP and Head of 麻豆原创 SuccessFactors APAC, and Gavin Mooney, Utilities Lead Architect for 麻豆原创 Australia.

With ongoing challenges and uncertainties, the panel discussed the importance of connecting and collaborating with staff while maintaining company culture. As businesses focus on productivity and safety, the key is facilitating remote work with operational and intelligent technologies 鈥� helping staff to work seamlessly and minimising manual, in-field work. For example, Internet of Things (IoT) and machine learning capabilities are facilitating predictive maintenance, optimising asset use and longevity while increasing the efficiency of maintenance crews. By assisting fieldworkers through augmented reality, and reducing the amount of fieldwork required using touchless substations and smart metering, utilities are improving their processes and keeping everyone safe during the pandemic.

In the , Peter Jose, General Manager for Financial Services at 麻豆原创 introduced a discussion between Darryl Fox, Industry Account Director at 麻豆原创 and David Earls, Executive GM of Enterprise Services and Technology at IAG. They discussed how IAG are utilising digital technology to empower staff, stay connected to their customers and maintain service continuity. Prior to the lockdown, IAG already had 30% of staff working predominantly from home which helped set a solid foundation in terms of technologies and practices for ensuring productivity.

Evan Mantis opened the with Asha Bisla, GM of Business Applications at Broadspectrum, Shenaz Bilkis, Global Industry Director for Construction and Real Estate at 麻豆原创, and Mike Denning, Business Architect for Service & Engineering Industries at 麻豆原创.

Asha shared insights into how Broadspectrum are working closely with strategic partners to fast track critical processes. Leveraging technology allowed the business to facilitate remote working at scale, manage the scheduling and safety of projects and people, while using communications and analytics software to forecast and plan for ever-changing circumstances.

Uday Bonu, Regional Industry Lead for Public Sector at 麻豆原创 , VP of Digital Government Transformation at 麻豆原创 to explore the impact of COVID-19 on public services and the strategies that can help governments work more efficiently to deal with the increasing demand for social services in the face of declining revenues. By implementing and accelerating digital initiatives, governments and private businesses can help set the industry norms and motivate change for the better in terms of processes and systems.

Taking insights from each of these industry sessions, it is clear that organisations of all sizes, in all industries, are squarely focussed on safeguarding their employees and customers, while maintaining business continuity. Technology and digitisation is playing a vital role in supporting and facilitating rapid change. In polling attendees, 麻豆原创 found that businesses across industry sectors are reprioritising and/or accelerating digitalisation projects in response to the pandemic 鈥� using the global shift to focus more on future-proofing operations.

Access the from the 麻豆原创 2020 Adaptive Strategies in a Changed World ACCELERATED Forum to gain further insights on specific industry challenges and how 麻豆原创 solutions are helping organisation to become more adaptive and resilient in this rapidly changing environment.

This blog originally published on .

The post People and Processes Remain Critical to Business Recovery appeared first on 麻豆原创 Australia & New Zealand News Center.

Get ready for the second 麻豆原创 Intelligent Finance and Risk virtual event

Data pervasiveness, hyper-connection of people and things, the rise of machines, and new expectations of what customer experience means are but a few elements that enterprises must account for as they develop their next product or service, or just want to stay relevant in their market.

Finance is not immune to those changes, and in many instances is the essential companion to drive an enterprise through what can sometimes be a foggy road to a meaningful transformation.

As products are moving to services and customer outreach is going direct, the finance industry needs to significantly adapt 鈥� and sometimes plainly transform 鈥� its processes. New billing and payments models, for example, are disrupting the well-known processes that CFOs and their organizations have been driving in the past decades.

Beyond ensuring efficient and modern operations, finance is also playing an essential role in assessing the financial viability of new business models, products, and services. At the centre of the enterprise, finance is becoming a key analytics hub for companies, providing the right insights before new business endeavours are started.

Finally, one of the basic needs for organizations to thrive is ensuring that their most important assets and data are protected from malicious activities. Cyber security is not the smallest issue enterprises must cope with. As the guardian of the most sensitive data, finance is increasingly relied upon to ensure digital trust across entire organisations.

But how can finance fulfil those important tasks without disrupting day-to-day operations, and without the luxury of additional headcounts and resources? How can processes by redesigned to expand its scope of responsibilities? What are the latest technologies that can be adopted to automate more while getting increased visibility into the business? What are the pitfalls and opportunities along the way?

To discuss these topics and provide firsthand insights from top experts and peers, 麻豆原创 is launching听the second 麻豆原创 Intelligent Finance and Risk virtual event听on February 11. It is a fully virtual event that addresses all aspects of finance transformation and how 麻豆原创 technology can help finance and risk executives achieve more automation, get more visibility, and better support the business through times of change.

With more than 40 sessions and keynotes featuring 麻豆原创 customers, partners, executives, and experts, it is the defining finance and risk event to start the year with a boost of 麻豆原创 knowledge on everything related to intelligent finance transformation.

This article first appeared on the Global News Centre.

Registration for 麻豆原创PHIRE NOW Australia and New Zealand is now open. To get your free access today,听.

The post Finance as a Key Enabler of Enterprise Transformation appeared first on 麻豆原创 Australia & New Zealand News Center.

Thankfully the cloud is widely accepted and understood as essentially a network of computer servers that allows users to access their data through the internet. My employer, uses cloud computing to store and process information so rather than our customers needing to install software on a single machine or hard drive, they can access it through their web browser or mobile application.

Whilst I believe the cloud is now largely understood by the broader business community, I suspect the understanding on how to value and benchmark SaaS Companies is relatively unknown.

This is quite typical in the tech start up sector where valuations or share prices may be grossly over or under inflated. It鈥檚 not uncommon to see volatility of listed company share prices as investors struggle to value these companies who commonly report year on year net losses whilst revenue and customer growth exceed expectations. This is often due to the fact these SaaS companies have a truck load of venture capital funds at their disposal and invest these funds for growth (people, product and marketing).

As a chartered accountant I thought I had a solid grasp on financial metrics and whilst the traditional metrics such as revenue, cash flow, profitability, liquidity still hold true, the introduction of the SaaS business model has introduced some new metrics that I had not heard of 10 years ago.

Below I will explain six metrics that should be considered when assessing the performance of a SaaS company:

Customer Acquisition Cost (CAC) – are the costs incurred to secure a new customer. These costs include upfront investment in sales and marketing.

Average Revenue Per Customer (ARPC) 鈥� this is calculated by dividing Monthly or Annual Recurring Revenue (A or MRR) by customer numbers at the end of period. To grow revenue, 麻豆原创 Concur can either add more customers or increase Average revenue per Customer (ARPC). By adding new , ARPC can be increased as more value is provided to our customers.

CAC Months – represent the number of months of ARPC required to recover the cost of acquiring each new customer.

Churn 鈥� Simply this is the % rate which customers cancel their recurring revenue subscriptions. Perhaps a better measurement of this metric is Monthly Recurring Revenue (鈥淢RR鈥�) Churn, this measures churn through revenue rather than the number of customers. MRR churn is the amount of MRR attached to customers that leave the company in the previous 12 months.

Lifetime value (LTV) – is a key measure of the value a customer represents to a SaaS company over the customers lifetime. LTV is calculated by dividing ARPC over the monthly churn rate to get the total revenue expected from a customer, then multiplied by the gross margin percentage to get total gross margin expected per customer.

There are multiple ways to improve LTV, such as enhancing products and services to existing subscribers to increase ARPC, improving efficiencies in costs, and investing in retaining customers. LTV of a customer can indicate potential future margins, whether the SaaS company is acquiring the right customers, and provides a strong signal to investors as to what they should expect as the company scales.

LTV/CAC – The LTV of the customer divided by the cost of acquisition per customer. The metric gives the gross margin of a customer鈥檚 lifetime as a multiple of the cost of acquisition. A LTV/CAC ratio of 1 would mean margins over the lifetime just cover the cost to acquire the customer.

Just like technology, the metrics and methods of valuing companies in the digital age are evolving, so keep these above indicators in mind when investing your hard-earn’t cash in that next SaaS Unicorn! Recurring Revenue is powerful just like compound interest.

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