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What Financial Management Trends Should 2017 Keep in Mind

Financial Management Trends in 2017

According to Basware CEO Esa Tihilä, there will be a change in business finance in 2017-18. Advanced technologies and new B2B services are instrumental in influencing how companies manage cash flow and working capital and drive growth.

We have looked at the current developments and the TOP 4 trends for you.

TREND 1: Corporate finance via the Cloud:

Cloud-based B2B networks are of the utmost importance for the 2017-18 trend. Companies can leverage the cloud technology to access financing opportunities faster and more efficiently. Through B2B networks, which connect companies and authorities all over the world, they receive access to capital on a need-oriented basis and can thus optimally optimize their current assets. Also for banks and alternative financing providers the networks provide new possibilities for corporate financing to the level of individual invoices.

TREND 2: Community financing of the supply chain:

The times when all the power lay with the buyer are over – at least when it comes to the issue of accounting. For some time now, it has become clear that buyers are paying more and more attention to paying their suppliers at an early stage, rather than paying out or even exceeding payment targets. In order to optimize their own current capital, companies are taking advantage of Supply Chain Finance measures, the reverse factoring. B2B networks enable new forms of supply chain finance and thus expand the scope for the buyer and supplier. Marketplaces for reverse factoring and dynamic discounting programs are only mentioned here as an example. The result is a more balanced buyer-supplier relationship, in which both sides have more control over the cash flows and more flexibility. This is a development that is particularly beneficial for small and medium-sized enterprises.

TREND 3: Consumerization in finance:

Consumerization is understood to mean that (IT) trends first appear in end users and then “overpower” them. One example of this is the use of smartphones and tablets, which have now found their place in the professional environment and make the work more independent. At the very latest, mobile access to business systems and applications has gained in importance. A further result of the consumer as an innovation driver in the IT sector is the greater user-friendliness of surfaces. Tools for the analysis, preparation and analysis of financial data can now almost be operated by everyone. In addition, it can be seen that the development of new financing options in the B2B sector is also oriented towards the methods of payment of the end users and thus an even greater spectrum is offered to companies.

TREND 4: Predictive Analytics for better financial decisions:

The latest developments in the field of Predicitive Analytics enable companies to take advantage of the wealth of financial and delivery data that has so far often failed. These insights help companies increase their cash flow and strengthen supplier relationships. Access to the data has no longer only specialists, but every authorized employee. As a result, financial managers can use Predictive Analytics to identify action-relevant tendencies in corporate finance at an early stage, identify opportunities for growth, and gain further important insights to make quick and fact-based decisions.

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