Navigating the software jungle: ERP vs CFO Platform

ERP systems have long been pillars of the finance department’s tech stack, but they have not succeeded in reducing reliance on spreadsheets for forward-looking planning. Through a technological alliance, where ERP systems are integrated with a CFO Platform, the finance department gets a tech stack that makes it easy to work collaboratively with reliable numbers. The result is that all levels of the company can make profitable decisions faster.

From Isolated Historians to Strategic Team Players

Turbulent conditions and increased competition have pressured CFOs and finance departments to play a more strategic, active role in value creation.

However, many lack the tools to effectively step into this role. ERP systems provide a good overview of historical data and the current situation but lack the functionality to help the company plan for the future. As a result, many still rely on good old spreadsheets as their sole tool.

This can work in smaller companies, but when hundreds of millions of kroner are in motion, and several hundred employees need to collaborate effectively, problems begin to pile up. Spreadsheets are not designed for large-scale collaboration and quickly become vulnerable in terms of data security. Additionally, human errors become nearly unavoidable when multiple people are working on the same files.

Forward-looking financial management and the dream of being a strategic sparring partner at the level large enterprises and corporations need has therefore been an Achilles’ heel for many finance departments.

The solution to this problem is that instead of extracting data from ERP systems to work in spreadsheets, the financial system should be connected to a CFO Platform.

How Can a CFO Platform Improve the Situation?

A CFO Platform gathers all financial data securely in one place, making it easily accessible for effective collaboration. This speeds up the process of creating thorough and well-prepared decision-making foundations for the choices the company faces.

With automated collection and compilation of financial data as its foundation, such a platform can provide seamless integration of financial data, automating much of what was previously time-consuming manual number crunching.

This elevates financial management from being fragmented and person-dependent to becoming a team sport. All contributors can easily get involved in one unified system, where silo thinking is eliminated, and collaboration and synergies across departments flourish. Access control and advanced security features ensure that workflows and data are handled safely.

Furthermore, the platform can be expanded with various solutions for financial planning. The most common extensions used by Profitbase customers are solutions for budgeting and forecasting, consolidation, risk management, and financial reporting integrated with Power BI.

But it doesn’t stop there. The platform can be extended with more customized applications to automate a range of business processes. For example, Solstad Offshore ASA has developed a loan module to gain full control and minimize risks and expenses associated with loans. Solvang ASA has also utilized the platform’s potential to create a solution that allows them to efficiently meet the requirements of the Transparency Act.

CFO Platform and ERP Make Decision-Making a Competitive Advantage

The only certainty in life is that nothing is certain. The choices we make will never be immune to luck, bad luck, incomplete information, or unforeseen events. However, despite some things being beyond our control, decision-makers can find comfort in the following quote from Benjamin Franklin:

“Diligence is the mother of good luck.”

Among all the factors that influence the outcome of our decisions, there is only one thing we have the ability to positively or negatively affect: the quality of the information base and the processes leading up to the decisions made.

As the hub for the company’s financial data, ERP systems are a treasure trove of insights. But often, deeper analysis and processing of the numbers are needed to create good reports that decision-makers can rely on. Here, the CFO Platform comes into play to process fragmented raw data into enriched plan data, providing decision-makers with fresh, thoroughly prepared, and data-driven decision-making foundations.

The symbiosis between the systems significantly simplifies the workflow by eliminating the need to switch between multiple systems and different spreadsheets. This greatly reduces the risk of errors and ensures that good decisions are made, giving the company the best chances to perform optimally and succeed in the market.

A Technological Alliance in the Fight Against Vulnerable Data and Dependency on Individuals

The possibilities of integrating a CFO Platform with ERP systems such as Infor, NetSuite, Visma, and Xledger are not just a technological alliance. It is also a strategic step towards a future where complexity is simplified, security is enhanced, and collaboration is at the center.

This symbiosis enables faster and more profitable decisions at all levels of the company, guiding the company towards a future marked by financial clarity and success