Winning strategies for professional services Finance teams
The start of 2021 is a good time to reevaluate your business strategy. Having managed to make it through in spite of the tough trading conditions and unprecedented upheaval of 2020, the new year is an excellent opportunity for a fresh start and perhaps a new lease of life.
Business leaders across multiple sectors often use the beginning of the year to introduce new ideas and investigate new approaches to moving business forwards. For project-oriented businesses, taking some time to investigate new ways of working or new strategies for success also makes sense. And one of the unexpected benefits of the challenges faced by the business community during 2020 was that some companies were able to adapt quickly and introduce changes that perhaps previously were not thought to be beneficial or viable. The widespread shift to remote working that took place in the second quarter of 2020 is a good example of this. For departments such as Finance that had previously been used to being predominately office-based, this represented a significant move and one that in many cases proved positive and is therefore now seen as part of a more permanent change.
But of course the nature of project-based businesses has not fundamentally changed, and as we begin a new year, the very specific challenges faced are likely to continue. Keeping a tight handle on expenditure and on resources in order to protect profitability and cashflow will still be the underlying driver for success – and the biggest focus for Finance.
The good news is that modern technology can help to effectively tighten controls and weed out hidden costs. This is perhaps more important now than ever as the sector pushes to recover from delays which for many, severely hampered progress over the previous year. Making some investment now will enable project-oriented businesses to operate more efficiently, make better use of their resources, and plan ahead with confidence.
What difference can technology make to business planning and performance?
Up-to-date and accurate data can transform how the entire business operates.
A joined-up approach, facilitated by a modern Finance system that links to and from other core applications such as timesheets, project management and planning and procurement means that everyone is working from one version of the truth. This is crucial for effectiveness across all departments as it means faster decision-making, less time spent on data-entry or rekeying, fewer errors, and less room for different interpretations of what is happening in real time. That makes a huge difference, not just in Finance but for the project team as well. But for an integrated solution to work, it must be easy for employees to input information as part of their day-to-day function. Keying in billable hours for example should be instant.
The right systems in place will enable more informed decisions and build confidence.
Again, this is a significant benefit, not only for Finance but for the entire project team. Visibility of information and ease of access and interrogation of that data means that timely insights can be identified that might otherwise have been missed. Picking up early on potential overspends or inefficiencies can save a lot of time and effort later; day-to-day decisions can be made knowing that the most up-to-date information is to hand; and reporting back to the Board when strategic decisions have to be made is much quicker and provides more valuable and useful information on which to act.
It is possible to make technology choices that don’t require significant capital investment.
Understandably many firms are currently keeping a close eye on cashflow and expenditure whilst still navigating this period of economic uncertainty. But that in itself doesn’t mean that plans to move to more modern and integrated systems need to be put on hold. A cloud-based infrastructure makes it possible to build solutions over time, and to pay for what you need as you scale things up – and that flexibility might just make all the difference.
For more ideas around how Finance professionals in project-oriented businesses and professional services firms can move beyond processing and add more value download our FREE guide - Don’t make it a game of chance: Finance for project-based businesses
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