EDITOR ’ S QUESTION
Over the last two years , practically every business has felt the financial pressures of the pandemic – a condition I ’ ve come to call economic long-COVID . But what ’ s the cure ? Is there a vaccine to reduce its impact ? I believe it ’ s stability , predictability and firm leadership at a national and international level . Let ’ s hope that our leaders agree and we can all start to build back stronger .
Last year , businesses struggled to trade in the way they did before the pandemic – and the picture doesn ’ t look much different for 2022 . Supply issues , delivery delays and staff shortages will continue to impact financial planning and spending this year .
Inflation will continue to drive these issues and cause further financial uncertainty . Staffing is particularly challenging because of the pandemic and the after-effects of Brexit – think ongoing HGV driver shortages and soaring shipping costs .
There ’ s almost a universal agreement that we need to tackle climate change and find more sustainable ways of living . However , the UK government ’ s laudable net-zero policy will also fuel – if you ’ ll pardon the pun – inflation by driving up energy costs for businesses and consumers alike .
ORGANISATIONS SHOULD INVEST IN SOFTWARE , TO DELIVER COST OF SALE ANALYSIS , CASH FLOW UPDATES AND BROADER FINANCIAL INTELLIGENCE .
These changes impact cash flow and force organisations to adapt their financial planning and alter their spending . While there ’ s nothing businesses can do to control or stop inflation , it ’ s vital to monitor it regularly – ideally , at least once a week . I know it ’ s like getting on the scales after
Christmas . But it ’ s got to be done and you ’ ll feel better for it , I promise .
With all these obstacles to overcome , it can feel like a hopeless time for businesses . But don ’ t despair , it ’ s possible to take back control .
Start by using solutions that provide real-time resource location , supply chain logistics and financial information . If businesses can also harness and analyse critical purchase , sales and warehouse stock data , they can mitigate some of the financial uncertainties that are beyond their control .
They should also be able to use the data to predict future trends and help spot potential areas for concern .
In the spirit of New Year ’ s resolutions , organisations should invest in software , to deliver cost of sale analysis , cash flow updates and broader financial intelligence .
I know these things are easy to say . I ’ m aware that finance professionals can struggle just to deliver month-end reports to the board . I understand that they may lack the bandwidth to carry out more detailed , proactive financial analysis .
This leads me to my second suggested New Year ’ s resolution : automate financial reporting and analysis where it ’ s safe , secure and sensible to do so . It will leave more time to examine the output of financial reports and help move towards longer-term planning .
HUGH SCANTLEBURY , CEO AND FOUNDER
OF AQILLA
22 www . intelligentcxo . com