Your company has gone through a period of intense growth. It now doesn’t even resemble what it used to be in a lot of ways. What used to be a small or regional operation is now spread across several countries, or even continents. With so many new employees, you need to keep everything in order—especially in regards to spending. Most companies that have permanent operations in several countries will need some form of global financials.
What Is Global Financials?
The term global financials can be a bit confusing for people who haven’t heard it before. Is it referring to international financial institutions? That would be a perfectly reasonable guess. In this case, global financials are indicating the financial records of a particular company. This can be any kind of business that works internationally.
What Are Potential Challenges of Global Financials?
Making more money means you need to work harder to protect it. People are often too trusting when letting new people into their company. This is an easy mistake to make when you’re in a time of fast growth. You just need additional people to come on in order to continue momentum and fulfill obligations. The obvious danger here is that you accidentally hire people who are only interested in stealing from your organization. Fraud is more prevalent than you might assume. In fact, businesses lose five percent of their gross revenue to fraud.
Unfortunately, it’s extremely difficult to prevent fraud. It can come from people who haven’t been with your company for long. However, it’s also frequently perpetrated by long-time, otherwise trustworthy employees. This is just all the more reason to spring for global financials. With global financials, you won’t have to worry about people fudging the numbers. All inputs go to one centralized system, which will quickly be able to identify inconsistencies.
It’s also important to note that fraud isn’t the only challenge to organizing your finances. When you have a global company, it just becomes difficult to keep track of everything. The best way is to create a simple protocol that centralizes all information for key players.
What Are Your Options for Global Financials?
Now that you understand the importance of global financials, it’s time to determine your best course of action. There are a few software options to fulfill this need. Cloud ERP is one of the most reliable and effective ways to deal with global financials. Essentially, cloud ERP (enterprise resource planning) allows businesses to integrate all critical internal functions onto one easy-to- use platform. This includes areas such as accounting, payroll, and human resources. By automating these processes through cloud ERP, your global financials will stay in order.
Another benefit to cloud ERP is that it can be quickly scaled up or down in response to client need. If you’re just starting to see the need for global financials, your whole company is likely in flux to some degree. The scalability of cloud ERP makes transitioning into new operations easier than you would imagine. There’s a huge benefit to cloud ERP because it can simultaneously deal with so many business issues—including global financials.
Don’t freak out if you’re realizing you don’t know enough about global financials. It’s now simpler than ever to have your financial statements in perfect order. Take advantage of recent software advances and take control of your organization’s global financials