Understand Your Company's Financials at a Grass Roots Level
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In the wake of corporate accounting scandals, public companies in the United States are no longer able to wait and disclose material changes to their financial condition until the next scheduled quarterly or annual report. CFOs must report information "on a rapid and current basis," which generally means whenever new information becomes available.
Beyond this requirement, CFOs of all companies, both public and private, are under pressure to understand what's happening at the grass roots level of their companies. To do so, they will have to hold front-line managers—the departmental budget-makers—responsible for the financial numbers reported.
In order to supply CFOs the right information, front-line managers need:
| • | A responsive reporting system that provides anyone in any department with the tailored information they need in one place. |
| • | A balance of information volume that doesn't overwhelm them, and a clear understanding of how the data will be used. |
| • | Time to test assumptions, perform what-if scenarios, and determine optimum reporting structures, along with the flexibility to change reporting structure. |
Microsoft Business Solutions for Analytics–FRx helped Mammoth Mountain—one of the premier ski resorts within the United States—close the loop between the boardroom and the front-line. With over 90 department heads and a cash flow affected by fickle factors like the weather and snow-levels, the challenge appeared formidable.
After receiving training, the finance department created eight different reporting formats to accommodate different user needs. Mike Guy, the company's controller, says the monthly reports give department heads "a better understanding of what's going on in their particular business area, including how their actuals compare versus their budget and how well they're performing in relation to their performance targets."
By using Microsoft FRx, front-line managers at Mammoth Mountain and over 115,000 other businesses worldwide have gained the technical ability to:
| • | Provide answers right away by taking advantage of content drilldown paths that are easily understood and require no training. |
| • | Complete the reporting process with no help from costly technical staff, which contributes to a low total cost of ownership. |
| • | Close books much faster and distribute information tailored to needs of users. |
Microsoft FRx can help you and your budget-makers create financial statements that portray more clearly than ever the kind of information that is necessary to make wise decisions and meet new reporting standards.
