The recent stream of corporate scandals has revealed a dire need for effective corporate governance.
Penalties have become more severe and auditing standards tougher every year. A company`s corporate governance is vital and can influence its share price, as well as the cost of raising capital. As a result, finance departments and CFOs have to become even better at ensuring that irregularities never happen. Ashley Ellington, MD, Softline Enterprise, says one way to do this is to effectively use technology.
Ellington reckons there is no doubt that technology has increased the pace of accounting, creating new and significant challenges: "As less time is being spent on transaction processing, the emphasis shifted to analytics and scenario planning and it is a good thing."
Parallel to the acceleration of their profession, accountants and auditors have also become the new guardians of corporate governance. This requires direction and control of management activities with business savvy, objectivity and integrity.
Ellington says technology should be seen and architected as an assistant for corporate governance, increasing real-time visibility and reliability of the financial information.
"In corporate governance, agility is probably as important as reliability," explains Ellington. Financial software becomes a tool for increased corporate governance when it allows monitoring indicators such as cash flow and solvency in real-time, enabling professionals to perform the necessary analytics and give the advanced warnings a company needs.
Viewing technology as such helps in understanding why the choice of financial software or an ERP system, as it is now frequently integrated, is a key decision for an enterprise, especially when considering that companies tend to keep their accounting system for an average of nine years.
"Your choice of financial software must provide insights and reports needed to comply with reporting standards that will be sustainable in the future. For instance, accounting software should all be IFRS compliant," explains Ellington.
Good corporate governance needs to establish controls to ensure compliance with regulatory regimes, such as BEE, environmental requirements, conflicts of interest or securities disclosure rules. Ellington says that a good financial system should be able to provide either pre-defined reports or tailored ones, to adapt to the specifics of any enterprise.
However, the digitalisation of the profession is a double-edged sword, as things could also go very wrong. In his book `The Chief Financial Officer in the Year 2010`, Robert Bruce highlighted that auditors will come to audit the system more and more rather than check large numbers of individual outputs to see if they are right. Ellington says it is vital for a CFO to ensure the process is right at all times, and automated reports are providing relevant information, rather than multiplying individual checks.
Ellington also recommends challenging your software provider. "Are they able to offer more than just a program? Check what they have to offer and challenge them. Do they offer a Web site, newsletter or internal magazine, giving you regular updates on the profession, legislation changes or best practice? Are they able to provide you with a real consultancy value?"
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Softline Enterprise is a leading supplier of business management solutions, delivering performance and Web capability that is essential for success in today`s competitive business environment. Addressing finance, construction, distribution, manufacturing, services, retail requirements, CRM and e-business, the product offering also supports and consolidates activity across expanding business needs. Available on a wide range of operating systems, and compatible with a host of industry-leading databases, it gives mid-range and larger organisations the reliability and scalability required to keep ahead of competitors.
Softline Enterprise products are supported through a network of accredited partners, which bring together the individual product and service components to deliver a complete and tailored solution.
Softline Enterprise products include:
Sage 1000 - a new, single business management software application designed to span operations across mid-sized businesses, integrating front office CRM and back office ERP systems. By sharing information between functional areas, businesses can enjoy greater efficiency, experience fewer errors from re-keying of data, and increase service levels by making it easier to give accurate, timely information from across the business to customers.
Sage Line 500 - offering all the advantages of a traditional ERP solution, Sage Line 500 provides tight financial control with full visibility of costs and powerful reporting tools. In addition, it includes an evaluation of market trends to assist customers to make informed strategic decisions. The product also manages cash flow through close budget control and efficient purchase requisitioning, and supports international business with multi-language, multi-currency, multi-company features. It includes vertical solutions such as manufacturing, construction and retail.
Sage SalesLogix - an affordable, fully scaleable and powerful CRM solution that is easily customised for medium-sized and divisions of large corporate businesses. Sage SalesLogix is designed to integrate seamlessly with other business software and back office applications, providing businesses with a holistic view of each customer.
Softline
Softline is a leading provider of accounting, payroll and CRM software solutions to small, medium and large-sized companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia.
Focused on the development of accounting, payroll and CRM software solutions, Softline has a 17-year track record as a market leader. The group has a broad range of products, offering users a variety of software solutions to run their businesses efficiently. Softline`s leading brands include Softline Accpac, Softline Enterprise, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group`s product offerings provide Softline customers with comprehensive, well-branded accounting, payroll and CRM software solutions.
In November 2003, Softline was acquired by Sage Group, a FTSE 100 company. The software group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium and large-sized business community.
Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll and CRM software solutions that improve the efficiencies of businesses around the world.
Sage
The Sage Group, an established FTSE 100 company, is a leading supplier of accounting and business management software solutions and services to 5.2 million small and medium-sized clients worldwide. With over 13 000 employees, the Sage Group comprises market-leading businesses throughout Europe, United Kingdom, North America, South Africa and Australia. Its products and services are sold through a global network of 23 000 reseller partners, 40 000 accountants as well as directly to clients from Sage companies throughout the world. For the financial year ending 30 September 2006, the group`s revenue grew by 22% to lb935.6 million, and the operating profit rose by 18% to lb235.8 million.
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