Robert Kugel's Analyst Perspectives

Blockchain Payment Systems Have Significant Potential

Posted by Robert Kugel on Apr 6, 2022 3:00:00 AM

How payments are effected is an afterthought to many involved in a transaction, but flaws in this process can be a source of pain and frustration for those in the back office, especially in accounting and treasury. To improve the way payments are handled in business-to-business transactions, the once ubiquitous paper checks are giving way to electronic payments. This category includes credit, debit and virtual cards, wire transfers, as well as ACH (Automated Clearing House) transmissions that may be in the form of direct deposits, direct debits and electronic checks. Electronic payments are supplanting checks because they lower processing costs for both parties in a transaction; increase accuracy, auditability and control of the accounting; provide better visibility into payment status; and enable deeper insight into spend or customer metrics. Building on these digital advances, blockchain payment systems (BPS), now at an early stage in development and adoption, have significant potential in the market because they offer similar advantages at an even lower cost. I assert that by 2025, fewer than 20% of organizations will be using blockchain payment systems, but those that do will speed transactions, reduce overhead and cut costs.

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Topics: CFO, blockchain, Payments

Tackling ESG Reporting Challenges

Posted by Robert Kugel on Dec 21, 2021 3:00:00 AM

ESG reporting is a matter that organizations – and especially publicly held corporations – will be confronting over the next several years. Ventana Research asserts that by 2025, one-half of corporations with 1,000 or more employees will have a formal ESG reporting process in place to address legal mandates or shareholder demand. The roots of ESG investing go back many decades but it has gained significant attention recently as demand in the investment world for non-accounting measures to guide ethical investments has grown. Organizations face three distinct challenges in dealing with ESG. In this analyst perspective, Ventana Research SVP and Research Director Robert Kugel discusses the considerations and benefits of organizing your organization’s ESG reporting.

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Topics: FP&A, Governance, Office of Finance, Reporting, CFO, ESG

Essential Technology for Continuous Planning

Posted by Robert Kugel on Sep 14, 2021 12:00:00 AM

As a result of the rapidly changing business landscape in 2020 and the need to quickly – and intelligently – change business plans and budgets, many more companies have been deciding to adopt a continuous planning approach to be able to add speed and flexibility. Transforming how organizations plan and budget has become a top-of-mind issue for CFO and even CEOs. Ventana Research has been advocating what we call continuous planning to improve organizational performance. In this multimedia Analyst Perspective, SVP and Research Director Robert Kugel discusses three important technologies necessary for continuous planning – technologies that can substantially enhance the effectiveness of the FP&A organization.

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Topics: FP&A, Office of Finance, budget, CFO, financial planning

Profitability Management: A CFO Priority to Gain Competitive Advantage

Posted by Robert Kugel on Feb 22, 2021 3:00:00 AM

Profitability management produces a sustainable competitive advantage but by 2025 only one-third of companies will have implemented a profitability management initiative, explains Ventana Research SVP and Research Director Robert Kugel. This brief video shows why FP&A organizations must be part of a profitability management approach to pricing and costing.

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Topics: FP&A, Office of Finance, Sales Operations, CFO, financial planning, Price Optimization, Price and Revenue Management

Updating FP&A’s Mission - A New Approach for the 2020s

Posted by Robert Kugel on Sep 14, 2020 3:00:00 AM

In this Analyst Perspective from Robert Kugel, learn how FP&A can redefine its mission to achieve the long-stated goal of making it more of a strategic partner with the rest of the organization. This means fully adopting integrated business planning, a high participation, collaborative, action-oriented approach to planning and budgeting built on frequent, short planning sprints. Short planning cycles enable companies to achieve greater agility in responding to market or competitive changes, and in the face of a very uncertain future, companies have been discovering the value of rapid planning and budgeting cycles. Watch the video to learn more.

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Topics: FP&A, Office of Finance, Budgeting, Business Planning, CFO, financial planning, forecasting

2020 Reporting: Improving Visibility, Transparency and Perspective

Posted by Robert Kugel on Jun 26, 2020 6:00:00 AM

FP&A and business analysts can make reporting more effective by reimagining how, what and when their company does its reporting. They should provide the users of their reports the information they want in a form they want it. They should be thinking about how they can make reporting more effective by rethinking how data is presented, how interactive it is, and what visualizations are used. Rethinking how to combine narratives, data, charts and graphics to everyday communications. How to add audio and video where it’s appropriate. Reimagine reporting to make it a more effective form of communications designed to improve a company’s performance.

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Topics: FP&A, Office of Finance, CFO, financial regulation, financial reporting, financial risk management, financial standards, tax planning

The Central Ledger: Restructuring Accounting with Technology

Posted by Robert Kugel on May 22, 2020 3:00:00 AM

Sometimes it takes a while for technology to fundamentally change how work is done. That’s because several innovations usually have to come together before a transformation can occur. For instance, Karl Benz created the first practical motorcar in 1885, but consumers would have to wait until the 1920s for the modern automobile. Computerized accounting systems originated in the 1950s but it’s only now that technologies have evolved and come together to fundamentally change how work is done.

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Topics: ERP, Office of Finance, close, closing, CFO, controller, Financial Performance Management, ERP and Continuous Accounting

Virtualizing the Close

Posted by Robert Kugel on Apr 24, 2020 4:31:30 PM

The global pandemic crisis was, in effect, an unrehearsed stress test measuring the resiliency of the department. The crisis highlighted the importance of sustaining confidence in the accuracy and control of accounting processes, not just efficiency. Virtualizing the close means using technology to substantially reduce the amount of manual processing and paper involved needed to complete the accounting close. Finance and accounting organizations that can operate in a virtual mode are better able to adapt to circumstances and overcome obstacles. Having systems that can be readily accessed remotely and having the ability to collaborate and execute processes virtually makes it easier for departments to meet their commitments with confidence.

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Topics: Office of Finance, Continuous Accounting, Fast close, CFO

The Bottom Line is the Bottom Line

Posted by Robert Kugel on Apr 17, 2020 5:29:20 PM

The Chief Financial Officer can enable her or his finance department play a more strategic role in company operations by adopting what I call profitability management. In the interest of time I’ve made this a very high-level description that’s intended to be just an introduction to the topic. Profitability management is a cross-functional effort. It integrates finance and sales to achieve an optimal balance of revenue and margin objectives. It’s an analytics-based approach designed achieve higher sales and fatter margins. Why should the CFO drive a profitability management initiative? The main reason is that it will improve the company’s profitability and competitiveness. The bottom line is the bottom line.

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Topics: Office of Finance, Continuous Planning, CFO, Financial Performance Management (FPM), CEO, Integrated Business Planning

Rating CFO Performance in Audit Costs

Posted by Robert Kugel on Apr 14, 2020 10:30:00 AM

For decades I’ve heard people talk about cutting audit costs to reduce administrative overhead but based on my observations, I was skeptical — mostly because, until recently, the documented success stories haven’t been about going from good to great so much as going from awful to average. That’s changing. I recently wrote about a company that had set out to cut its external auditor’s fees. The benefits it had accrued are significant, including a reduction in staff time devoted to the audit. I also explained why cutting audit fees wouldn’t be easily duplicated in every company.

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Topics: Office of Finance, audit, Continuous Accounting, financial performance, CFO