In this post, we’ll explore the steps involved in implementing the right financial data platform for your business.
The era of using traditional spreadsheets and bespoke reporting systems for financial management is coming to a close. Modern finance leaders are turning to financial data platforms to streamline operations, gain real-time insights, and maintain robust financial controls at scale. However, choosing the right platform that meets your unique business needs can be a challenging task.
In this post, we’ll explore the steps involved in implementing the right financial data platform for your business.
A financial data platform is a centralized system that aggregates, processes, and automatically reconciles financial data from various sources within an organization. It's a financial operations hub, purpose built for financial workflows, offering tools and functionalities for data extraction, transformation, reconciliation, and analysis across every source of financial data leveraged by the organization. Rather than relying on in-house bespoke reporting systems, finance teams leverage financial data platforms to self-serve automated reconciliation and accounting, ensuring that all financial information is accurate and up to date in real time.
For more information on financial data platforms, check out our recent post, Understanding Financial Data Platforms: A key to Modern Finance Operations
Start by identifying and engaging the relevant stakeholders in the decision-making process. While this includes the finance and operations team who can emphasize the need for financial automation, it is also important to engage representatives from the product or engineering team to understand your data requirements. Additionally, input from customer success and operations teams will provide a holistic view of the requirements, ensuring the platform effectively caters to cross-functional needs.
Define the primary motivations behind your need for a financial data platform. Is it:
By highlighting your core operational and control requirements, you can identify the most viable platforms that align seamlessly with these needs.
Mapping out the origins of your financial data is an important piece of controls. Whether sourced from legacy systems, contemporary ERP software, third-party applications, or internal data stores, ensure your chosen platform not only integrates smoothly but can also uphold the financial controls standards required for each source.
Equipped with a comprehensive understanding of your needs, sources, and desired workflows, embark on a vendor comparison. For larger enterprises, seek vendors proficient in managing complex financial data intricacies, emphasizing financial controls and workflows. Startups, on the other hand, should prioritize flexibility, scalability, and vendors who are adept at navigating startup-specific challenges.
Key considerations for vendor comparisons:
Before making a final decision, review the potential Return on Investment (ROI) of your choice. Beyond the upfront costs, factor in:
By incorporating the expenses associated with your teams' time and comparing against the benefits of improved financial controls and optimized workflows, you'll be in a prime position to make a strategic, data-rich decision.
Having laid the groundwork in the preceding steps, now comes the phase of bringing your chosen financial data platform (FDP) to life in your organization. Here’s how you can go about it:
Implementation
Measurement
Iteration
The journey of implementing a financial data platform doesn't end after the initial setup. The key is in continuous monitoring, measuring, and iterating to ensure it remains aligned with the dynamic needs of your business. As financial landscapes evolve, your FDP should be agile enough to adapt, ensuring that your organization always has its finger on the financial pulse. With diligent implementation, measurement, and iteration, you can unlock the full potential of your chosen platform, making it a cornerstone of your financial operations.
If you’re looking for a financial data platform that automates reconciliation and controls, Proper offers a comprehensive solution for business of all sizes. For more information, reach out for a demo.