In today’s fast-evolving business landscape, effective communication is a must. This is especially true with regard to conveying financial performance. Clear, data-fuelled communication of financial performance can steer companies to success. Similarly, inadequate communication can result in confusion, missed opportunities, and failure to deal with severe risks.
Why is communicating business performance so important?
Effective communication in finance teams fosters a sense of inclusion and engagement among employees. Employees have a better understanding of their position within the greater organisational framework when they have clarity about the role of others. This sense of belonging to something greater than themselves can raise morale and boost productivity.
However, poor communication across departments can create several issues. If employees do not fully understand the strategic targets of the organisation, goals and motivations may not be aligned. Wastefulness and inefficient processes can result from this too. And this inefficiency can lead to reputational damage, as communication doesn’t only happen internally, it also occurs with external stakeholders.
Digital transformation through finance and accounting Cloud software has revolutionised the way businesses and internal functions share information with one another. One of the most significant improvements has been in the way business performance is communicated. So, let’s explore some of the specific ways Cloud technology makes this possible.
5 ways Cloud computing improves business performance communication
1. Simplified reporting
The traditional/manual method of generating reports can be extremely time-consuming and complex. Cloud-based platforms often offer a far more sophisticated yet simple approach to reporting. Rather than having to consolidate performance data from multiple spreadsheets, it’s all in one place, and can be fed into pre-built report templates. With top-level dashboards too, it’s easy for everyone, from top management to operational personnel, to grasp a simplified view of performance in relation to key metrics.
2. Updates from any location
One of the biggest advantages of Cloud computing is the ability to access/update data from any location. This boosts communication because no matter what time (or from what location) someone is accessing their work, they’re always seeing the same up-to-date information as everyone else. If two or more people access the system simultaneously, they can collaborate from afar, putting their minds together to draw insights from the data. This level of access makes it possible for finance teams to practice continuous accounting too, rather than waiting for month-end to look back upon outdated performance data.
3. No unnecessary outsourcing
Outsourcing can sometimes lead to miscommunication and misunderstandings due to a lack of context or information being lost in transit. By leveraging the capabilities (and ease of use) of Cloud technology, businesses can keep critical functions in-house. This not only reduces the risk of miscommunication but also enhances their control and clarity around business performance data.
4. Seamless integration
Cloud technology fundamentally transforms the way businesses operate by enabling a cohesive environment. It's not just about having a centralised space for storing and accessing data; it's also about breaking down silos and enabling teams to work together from across different departments. Cloud-based solutions are far more flexible than traditional on-premise systems, and can therefore integrate with other platforms far more easily. This integration enables automation across the organisation as there is a seamless flow of information.
With these shared workflows in place, the amount of work and energy needed is reduced, as there are no duplications of effort. There’s also much better visibility, as it’s clear what has already been done, with an audit trail of actions taken. One version of the truth exists, which minimises conflict and helps to foster an environment of openness. This also makes it simpler for all employees to pull in the same direction, striving towards central organisational objectives.
5. Superior visibility
By facilitating a comprehensive view of business performance, Cloud technology allows organisations to find ways to boost their productivity, better forecast future outcomes, set realistic goals, and develop robust strategies to achieve them. They can identify areas for investment and growth, while pinpointing underperforming segments that may need restructuring or additional support. This level of strategic insight and unification is invaluable in today's competitive business landscape.
Overcoming poor business performance communication
Poor business performance communication can lead to a myriad of issues, including misalignment between different departments, decreased productivity, and missed opportunities. However, by utilising cloud technology, businesses can overcome these challenges.
Cloud technology has the potential to revolutionize business communication by centralizing data and making it accessible across various departments. This means that information is no longer siloed within specific teams but is readily available for everyone who needs it. The result is improved alignment between departments, enhanced decision-making processes, and increased productivity.
Cloud technology can dramatically improve business performance communication. By embracing this technology, businesses can ensure that they communicate effectively both internally and externally, leading to increased efficiency, reduced misunderstandings, and a stronger competitive edge in the marketplace.
Ready to make the leap to Cloud communication?
Our Cloud accounting system, Advanced Financials, transforms the way finance teams can share business performance insights. With easy-to-understand reports that are fuelled by highly accurate/current data, it’s simple for the CFO to present financial performance to other key stakeholders, so that informed strategic decisions can be made. All finance functions are stored/monitored in a single digital space, enabling greater communication, cohesion, and collaboration across the department.
Are you ready to enjoy the transformative benefits of Cloud communication? Be sure to get in touch today to find out more.