ARTICLE — Improvements in financial planning, budgeting, and control that NetSuite customers make today can help position their organization for success when the economy rebounds.
Sixty-six percent of businesses plan to reduce costs because of the recession, according to a survey of more than 1,000 executives from across the United States, Latin America, Europe, and Asia. What is more, the percentage of organizations planning cost reductions of more than 10 percent is growing.
The cost reductions are in response to the global recession caused by the pandemic. Many of the organizations surveyed by Deloitte are being challenged with a significant drop in customer demand, shifts in customer behavior, new cybersecurity vulnerabilities, and supply chain challenges.
The financial fallout of the pandemic has been most significant in industries such as transportation and healthcare, where operations have been curtailed by lower customer demand or public health measures. Sixty-one percent of organizations in the transportation sector and 60 percent of organizations in the hospitality sector have experienced a decline in revenues, Deloitte finds.
As part of their efforts to reduce costs, many organizations are deploying digital technologies that they hope will improve their organization’s performance, efficiency, and competitive standing. About two-in-three organizations are pursuing automation in response to the pandemic, Deloitte says.
Chief among these technologies are solutions that improve financial planning, budgeting, and control. Adjusting a corporate cost structure can be hard. This can be attributed, at least in part, to the outdated approach to financial planning, budgeting, and control used by most organizations.
The right financial planning, budgeting, and control solution can help an organization:
- Respond fast to changing economic and market conditions
- Stabilize its cashflow
- Set financial targets and budgets
- Continually monitor financial targets and budget performance
- Dynamically update planning assumptions and resource allocations
- Define a strategy for thriving
All this culminates in a finance environment that can address any economic or market condition.
Today, most businesses are focused on stabilizing their cashflow. Soon, they will be looking for ways to thrive during economic recovery. Deploying a financial planning, budgeting, and control solution – such as a solution that combines technologies from PyanGo and Oracle NetSuite – addresses these objectives, delivering short – term and long – term benefits. The technology does this by providing insights into the financial standing of the business, managing budget performance across the enterprise, facilitating collaboration among stakeholders, and enabling the modeling of “what-if” financial scenarios. And all this can be done with software that is fully integrated with NetSuite, unifying reporting, analysis, and control and ensuring data quality and timeliness.
NetSuite customers have no time to waste.
By acting fast to reduce costs, organizations will be better positioned to succeed in the future.
Click here to learn how PyanGo can automate and enhance your financial planning, budgeting, and control in NetSuite.