ACCA Strategic Professional · Strategic Business Leader · Finance transformation
Brightwell Ltd has implemented a cloud-based ERP system with real-time dashboards. The finance director wants to use it to shorten the month-end close and improve the information provided to management. Which outcome is most consistent with a successful finance transformation using this technology?
A successful transformation using a cloud ERP would produce a faster close and let finance spend more time analysing trends, drivers and forecasts rather than collecting and reconciling data. Technology supports management judgement; it does not replace it, and fragmented spreadsheets or unchanged processes would defeat the objective.
- AA faster close and more time spent on analysis of trends, drivers and forecasts instead of data collectionCorrect
- BRetaining separate spreadsheets in each department so that data remains unconnected
- CKeeping the same close timetable but producing more paper reports
- DReplacing all management judgement with system-generated output
Explanation
An integrated ERP with real-time data reduces manual collection and reconciliation, shortening the close and releasing time for analysis. Separate spreadsheets and unchanged processes defeat the purpose, and technology supports rather than replaces management judgement.
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