Private Equity CFOs Need Technology and Support to Succeed

 In Blog

The clock starts the very moment a CFO steps into the portfolio company of a Private Equity Firm and their job isn’t an easy one. The CFO must review and analyze volumes of financial data, then determine how to make the smart decisions that can turn a company around.

A modern enterprise resource planning (ERP) solution can streamline data management, offer business intelligence, and strengthen communication between stakeholders, CEO and other key players.

When a CFO is placed at a portfolio company, they are under immediate scrutiny. Right off the bat, the CFO must balance good stewardship, relationships with stakeholders, and a strong global strategy. The common thread of success in each of these key processes is a robust ERP solution, like SAP Business One.

CFOs Achieve Their Mission With ERP

    1. Stewardship: The CFO must exercise responsible stewardship by taking control over the portfolio company’s financial data. Receivables, payables, cash flow and forecasting data must be captured and analyzed to make data-driven decisions, reducing waste and improving profits. ERP provides a single platform for managing financial transactions without redundant data entry or collating reports from disparate accounting systems. A centralized solution offers consistent and standardized data the CFO can use to master information and make strong forecasts.
    2. Business relationships: The CFO needs to work closely with the CEO and other stakeholders. Several key players may be needed when making key decisions. Notifications can be created in an ERP solution to alert leaders when certain situations arise, for example when inventory reaches a certain level or when procurement needs approval for a costly item. SAP Business One delivers alerts on mobile applications or during browser access so leaders won’t miss an opportunity to see critical information when it arises.
    3. Global strategy: If you can measure it, you can improve it. Dashboards and business intelligence features within ERP provide data at a high level to guide strategic decisions. Leaders can also dive deeper into data to understand every business process, in real-time, then use that insight to make smart changes.

Implementing a powerful ERP solution is one of the strongest improvements a CFO can bring into a portfolio company. With the right tools and the proper support, the CFO can turn a weak company into a strong, successful one. Contact N’ware Technologies for more information about using SAP Business One to support your CFO.

By N’ware Technologies, a SAP Gold Partner serving businesses in Canada and the United States

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