Recent research by Accountagility, a leading solutions provider for the finance function, has revealed that almost half of CFOs and Finance Directors (44%) believe that the ability to cope with foreign exchange is a key requirement from a planning tool. This evidence demonstrates that adaptability and flexibility is crucial when it comes to financial planning and reporting, particularly at a time when Sterling is under pressure ahead of the upcoming EU Referendum.
With so many companies now operating internationally, Accountagility’s findings show that finance departments require planning tools that can be easily adapted for different currencies, since exchange rates are prone to fluctuation and in some countries the fields of the general ledger are dictated by law.
As such, the rigidity of planning in one currency alone can cause havoc for businesses that cannot accommodate these shifting rates. By adding more flexibility to their processes and tools, finance teams can ensure that planning and reporting reflect real time accounts and forecasts, and also unlock accurate business insights that can help to drive performance more effectively.
Robert Gothan, CEO and Founder of Accountagility, comments:
“With a potential Brexit on the horizon and Sterling currently experiencing pressure as a result, it is vital for CFOs to be able to factor exchange rate volatility into their planning solutions. This “white noise” distracts the business from the analysis that is crucial to creating a great strategic plan. As a result, international companies are looking for new levels of sophistication in the handling of currencies and exchange rates. By choosing tools that can mimic the organisation’s policies on exchange rates and global currencies, finance departments will be able to spend more time facilitating better decisions, rather than damaging productivity with inefficient planning tools. Businesses must maintain their competitive edge in order to thrive on a global level, and utilising the right planning tools will allow them to do so.”