--- title: 6 Financial Management Excellence Tips description: Learn the key to financial management excellence and get 10 SAP BPC formulas to use in your business planning application and disclosure management image: https://www.sapbwconsulting.com/hs-fs/file-19944297-gif/images/money_in_toilet_anim_150_clr_7884.gif --- ![Financial Management Excellence](https://www.sapbwconsulting.com/hs-fs/file-19944297-gif/images/money_in_toilet_anim_150_clr_7884.gif) # 6 Financial Management Excellence Tips Table of Contents ## Achieving Excellence in [Financial Management](https://www.sapbwconsulting.com/request-sap-business-planning-and-consolidation-sap-bpc-consulting-support)   You ever wonder how the U.S. government actually gets [financial statements](https://www.sapbwconsulting.com/request-sap-business-planning-and-consolidation-sap-bpc-consulting-support) from private companies?  If you’re a [CFO](https://www.sapbwconsulting.com/resources/cio-guide-to-it-strategy/), you may already have heard of an application called [SAP Disclosure Management](https://www.sapbwconsulting.com/blog/business-reporting-requirements), which, as a [Financial Consolidation consultant](https://www.sapbwconsulting.com/request-sap-sem-bcs-consulting-support), I believe is a [giant leap forward](https://www.sapbwconsulting.com/blog/inbound-marketing/4-ways-to-bring-digital-innovation-to-your-company) for companies that currently struggle to comply with [SEC reporting requirements](https://www.sapbwconsulting.com/enterprise-services/sap-industry-solutions/business-requirements-analysis).  ## What A CFO Faces When It Comes To Financial Excellence However, many, if not most companies, are not publicly traded and do not have to disclose consolidated [financials](https://www.sapbwconsulting.com/blog/inbound-marketing/are-you-ready-to-think-grow-rich-mindmap) to the government.  This doesn’t mean you don’t have to produce and [report](https://www.sapbwconsulting.com/blog/5-kpi-design-best-practice-guidelines) on [consolidated financials](https://www.sapbwconsulting.com/blog/8-value-based-questions-for-real-estate-management-software-solutions).    Why is that?  Well, as a [CFO](https://www.sapbwconsulting.com/consulting-rate-calculator-whats-your-rate), you’re facing: - [**Volatility** in markets](https://www.sapbwconsulting.com/hubspot-growth-platform-crm-marketing-hub-service-hub-sales-hub), commodity prices, and stocks - Increasing **globalization** - Increased focus on [**risk**](https://www.sapbwconsulting.com/sap-sem-cpm-risk-register-design-template) - Pressure on [**margins**](https://www.sapbwconsulting.com/business-ratio-formulas-financial-formulas) - [Intrusive **regulation**](https://www.sapbwconsulting.com/blog/inbound-marketing/does-pci-dss-compliance-affect-you) that is here to stay - New – potentially **disruptive** –technologies ## What Stakeholders Want To Know About The Company Financials When taken together, these issues mean that today’s [CEO](https://www.sapbwconsulting.com/blog/how-you-can-estimate-a-sap-bw-project-in-under-5-minutes)s and other stakeholders want to have a clear picture of not only where the [business](https://www.sapbwconsulting.com/blog/roce-return-on-capital-employed-simply-explained) has been, the traditional rearview mirror method of [planning and forecasting](https://www.sapbwconsulting.com/blog/inbound-marketing/3-marketing-routes-to-reach-your-crm-goals), but as well, where the future is taking the company.  Most of all, you want to [avoid future financial losses](https://www.sapbwconsulting.com/blog/reporting-skills).   ![SEM BCS Financial Consolidation](https://www.sapbwconsulting.com/hs-fs/file-19944297-gif/images/money_in_toilet_anim_150_clr_7884.gif?width=129&name=money_in_toilet_anim_150_clr_7884.gif "SEM BCS Financial Consolidation") **Don't throw money down the drain!**   Part of the solution of seeing the future clearly is via [Financial Management Excellence](https://www.sapbwconsulting.com/fully-loaded-cost-calculator) by achieving: 1. Strong cash flow and liquidity 2. Compliant and accurate [financial reporting](https://www.sapbwconsulting.com/develop-a-data-governance-framework) 3. Maximized [profitability](https://www.sapbwconsulting.com/blog/how-to-improve-sap-profitability-management-p2-the-ultimate-guide) 4. [Reduced cost of finance](https://www.sapbwconsulting.com/blog/what-is-the-tco-of-that-shinny-new-system-youre-about-to-buy) 5. Partnering with the organization to [drive value](https://www.sapbwconsulting.com/blog/inbound-marketing/how-can-hubspots-growth-suite-actually-help-you) 6. Dealing with both IFRS and GAAP based financial systems, in this ever more connected world.   These [financial management excellence goals](https://www.sapbwconsulting.com/blog/inbound-marketing/free-online-sales-and-inbound-marketing-calculator-determine-website-traffic-and-sales-goals) and behaviors have some hard dollar effects on [Operating Costs](https://www.sapbwconsulting.com/blog/how-to-determine-your-fully-loaded-cost-rate) and Effectiveness:   ![KPI](https://www.sapbwconsulting.com/hs-fs/file-19946860-png/images/united_states_dollar_falling_400_clr_5164.png?width=211&name=united_states_dollar_falling_400_clr_5164.png "KPI")   | 24-45% | Faster [Time to close books](https://www.sapbwconsulting.com/sap-fico-consulting) | | --- | --- | | 50-80% | Reduction in Reconciliation costs | | 20-40% | Lower Ledger maintenance costs | | 10-20% | Reduction in Internal and external audit cost | ## *World Class Financial Excellence Defined* > *[World-class companies](https://www.sapbwconsulting.com/blog/how-to-improve-sap-profitability-management-the-ultimate-guide) spend 45% less on [their closing](https://www.sapbwconsulting.com/blog/inbound-marketing/unique-techniques-to-increase-your-company-revenues) and reporting efforts than other companies and save $5.5 million for every $1B in revenue.* > > *Source: The Hackett Group.* ## SAP Strategic Enterprise Management and [SAP BPC](https://www.sapbwconsulting.com/blog/14-sap-business-planning-best-practices)   With SAP [SEM BCS](https://www.sapbwconsulting.com/request-sap-sem-bcs-consulting-support) (Business Consolidation) and now [SAP BPC (Business Planning and Consolidation)](https://www.sapbwconsulting.com/blog/how-to-map-sap-bpc-to-planning-scenarios), along with the complete suite of [SAP financial management applications](https://www.sapbwconsulting.com/enterprise-reporting-strategy-development), you have the ability to produce [consolidated financial statements](https://www.sapbwconsulting.com/blog/a-step-by-step-process-for-setting-profit-improvement-goals-using-sap) (and [store them](https://www.sapbwconsulting.com/blog/inbound-marketing/12-sap-crm-content-management-system-requirements)) and to resolve those oh so difficult discussions about how to [value intra-company transactions.](https://www.sapbwconsulting.com/enterprise-services/sap-industry-solutions/value-engineering)  This is an esoteric area, but in my experience around the globe and managing aircraft depot overhaul operations, I have found that one of the most contentious areas of management is getting two business unit managers to agree on an [intra-company transfer pricing cost](https://www.sapbwconsulting.com/blog/inbound-marketing/3-multi-channel-marketing-lessons-learned-catching-the-big-one) (especially when foreign currency and [inflation](https://www.sapbwconsulting.com/total-cost-of-ownership-tco) is rapidly fluctuating).  How does this relate back to SAP Disclosure Management? ## SAP Disclosure Management Architecture With SAP Disclosure Management, you now have the ability to create, entirely in-house, without going to a 3rd party, required SEC disclosure documents.  It means you will be:   - **Responsible** for the preparation and submission of financial statements to regulators and investors - **Executing** the complete automation of the “last mile” - **Publishing** highly formatted reports (e.g., annual report), board packs with full audit trails from source to disclosure - [**Combining**](https://www.sapbwconsulting.com/blog/inbound-marketing/10-shortcuts-for-working-your-leads-in-record-time) amounts stored in consolidation applications with commentary and disclosures stored in Microsoft Word, then transforming them into printed (PDF) and interactive (XBRL) formats - **Deciding** whether to continue to outsource this critical aspect of the reporting process to a third-party financial statement publisher?   ## SAP BPC Integrates With SAP Disclosure Management   Most likely, you will be using a business planning application to get you to the SAP Disclosure Management stage, such as SAP BPC.  BPC combines both elements of business planning and [financial consolidation](https://www.sapbwconsulting.com/blog/sap-hana-margin-analysis), which means, from an organizational perspective, it requires the input during the design phase of your planning and budgeting process from members of the business across all business boundaries.    ## SAP BPC Workflows and Functions Make It Easier   During execution of the [budgeting and planning process](https://www.sapbwconsulting.com/blog/how-to-use-a-project-charter-to-start-a-project), it also requires input from all organizational units, and the use of many planning functions.  SAP BPC has a vast library of planning functions, and to help you remember some of most critical ones, we offer a handy checklist.   [![Get 10 BPC Functions Checklist](https://no-cache.hubspot.com/cta/default/118735/5dd08cfd-6a79-463a-bf15-927c5bc507b2.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/5dd08cfd-6a79-463a-bf15-927c5bc507b2) ## SAP Financial Management System   Now [you know](https://www.sapbwconsulting.com/blog/inbound-marketing/learn-7-key-approaches-to-developing-buyer-personas)-it takes a lot to actually comply with SEC reporting requirements. Besides SAP Disclosure Management, there needs to be a comprehensive [Financial Management system](https://www.sapbwconsulting.com/blog/12-warning-signs-your-epm-system-is-in-trouble) in place to help CFOs achieve their targets and go beyond budgeting. There also needs to be an underlying design behind the way finance works, including which systems do what.  If there is not, you will soon find you have many systems from many vendors doing the same thing and still don't have a financial management system you can call excellent.     People Who Read This Also Read: - **8 Secrets to SAP Enabled [Spend Performance](https://www.sapbwconsulting.com/blog/8-secrets-to-sap-enabled-spend-performance-management) Management** - **Learn [What Tools](https://www.sapbwconsulting.com/blog/learn-what-tools-to-use-to-investigate-is-mill-functionality) To Use To Investigate IS-Mill Functionality** - **Leverage SAP BW to Increase [Supply Chain Inventory](https://www.sapbwconsulting.com/blog/leverage-sap-bw-to-increase-supply-chain-inventory-accuracy) Accuracy**   Topics from this blog: [Best Practices](https://www.sapbwconsulting.com/blog/topic/best-practices) [BPC](https://www.sapbwconsulting.com/blog/topic/bpc) [Disclosure Management](https://www.sapbwconsulting.com/blog/topic/disclosure-management) ### Download SAP BW Mindmap Learn what SAP Business Warehouse is and what it does in under five minutes [![Get this Mindmap](https://no-cache.hubspot.com/cta/default/118735/8db2ad37-8211-47a3-86ae-09b6b2bb297b.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/8db2ad37-8211-47a3-86ae-09b6b2bb297b) [mailto:someone@yoursite.com](mailto:someone@yoursite.com) ### Lonnie D. Ayers, PMP About the Author: Lonnie Ayers is a Hubspot Certified Inbound Marketing consultant, with additional certifications in Hubspot Content Optimization, Hubspot Contextual Marketing, and is a Hubspot Certified Partner. Specialized in demand generation and sales execution, especially in the SAP, Oracle and Microsoft Partner space, he has unique insight into the tough challenges Service Providers face with generating leads and closing sales using the latest digital tools. With 15 years of SAP Program Management experience, and dozens of complex sales engagements under his belt, he helps partners develop and communicate their unique sales proposition. Frequently sought as a public speaker in various events, he is available for both inhouse engagements and ** remote coaching. ** ![Balanced Scorecard Consultant](https://www.sapbwconsulting.com/hubfs/social-suggested-images/Balanced%20Scorecard%20Certified%20Graduate.jpg) He also recently released a book **"How to Dominate Any Market - Turbocharging Your Digital Marketing and Sales Results",** which is available on [ Amazon.](https://www.amazon.com/Dominate-Turbocharging-Digital-Marketing-Results/dp/1728357950/ref=sr_1_1?dchild=1&qid=1589182458&refinements=p_27%3ALonnie+D.+Ayers&s=books&sr=1-1&text=Lonnie+D.+Ayers)**** [View All Articles by Lonnie D. Ayers, PMP](https://www.sapbwconsulting.com/blog/author/lonnie-d-ayers-pmp) ## The SAP Blog Subscribe to our blog and receive SAP BW Updates, demand generation, inbound marketing, sales enablement, technology and revenue generation insights and ideas delivered right to your email. [mailto:someone@yoursite.com](mailto:someone@yoursite.com) ![SAP](https://googleads.g.doubleclick.net/pagead/viewthroughconversion/960101754/?value=0&guid=ON&script=0) ![](https://www.facebook.com/tr?id=199270410761059&ev=PageView&noscript=1) ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/blog/6-financial-management-excellence-tips#blogposting", "@type" : "BlogPosting", "about" : [ { "@type" : "Thing", "name" : "Financial management", "sameAs" : "https://en.wikipedia.org/wiki/Financial_management" }, { "@type" : "Thing", "name" : "Planning", "sameAs" : "https://en.wikipedia.org/wiki/Planning" }, { "@type" : "Thing", "name" : "Application software", "sameAs" : "https://en.wikipedia.org/wiki/Application_software" }, { "@type" : "Organization", "name" : "SAP", "sameAs" : "https://en.wikipedia.org/wiki/SAP_SE" } ], "author" : { "@id" : "https://www.sapbwconsulting.com/about-lonnie-ayers#person" }, "dateModified" : "2024-10-03", "datePublished" : "2024-10-03", "description" : "Learn the six tips to achieve excellence in financial management and streamline your organization's financial operations.", "headline" : "6 Financial Management Excellence Tips", "inLanguage" : "en", "mainEntity" : [ { "@type" : "ItemList", "itemListElement" : [ { "@type" : "ListItem", "name" : "Develop a strong financial plan", "position" : 1 }, { "@type" : "ListItem", "name" : "Use advanced planning tools like SAP BPC", "position" : 2 }, { "@type" : "ListItem", "name" : "Optimize cash flow management", "position" : 3 }, { "@type" : "ListItem", "name" : "Monitor financial performance regularly", "position" : 4 }, { "@type" : "ListItem", "name" : "Leverage external financial benchmarks", "position" : 5 }, { "@type" : "ListItem", "name" : "Ensure compliance with regulatory standards", "position" : 6 }, { "@type" : "ListItem", "name" : "Use consolidated reporting for better insights", "position" : 7 }, { "@type" : "ListItem", "name" : "Implement a continuous improvement process", "position" : 8 } ], "name" : "Financial Management Excellence Tips" } ], "mainEntityOfPage" : { "@id" : "https://www.sapbwconsulting.com/blog/6-financial-management-excellence-tips#webpage" }, "mentions" : [ { "@type" : "Thing", "name" : "Cash flow", "sameAs" : "https://en.wikipedia.org/wiki/Cash_flow" }, { "@type" : "Thing", "name" : "Consolidation (business)", "sameAs" : "https://en.wikipedia.org/wiki/Consolidation_(business)" }, { "@type" : "Organization", "name" : "U.S. Securities and Exchange Commission", "sameAs" : "https://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission" } ], "name" : "6 Financial Management Excellence Tips", "potentialAction" : { "@type" : "ApplyAction", "name" : "Get 10 BPC Functions Checklist", "target" : { "@type" : "EntryPoint", "actionPlatform" : [ "http://schema.org/DesktopWebPlatform", "http://schema.org/MobileWebPlatform" ], "inLanguage" : "en", "urlTemplate" : "https://www.sapbwconsulting.com/get-10-critical-sap-bpc-functions" } }, "publisher" : { "@id" : "https://www.sapbwconsulting.com#organization" }, "url" : "https://www.sapbwconsulting.com/blog/6-financial-management-excellence-tips" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com#website", "@type" : "WebSite", "inLanguage" : "en", "name" : "SAP BW Consulting, Inc.", "publisher" : { "@id" : "https://www.sapbwconsulting.com#organization" }, "url" : "https://www.sapbwconsulting.com" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com#organization", "@type" : "Organization", "logo" : { "@id" : "https://www.sapbwconsulting.com#logo" }, "name" : "SAP BW Consulting, Inc.", "sameAs" : [ "https://www.linkedin.com/company/sapbwconsulting", "https://www.youtube.com/user/SAPBWConsulting/", "https://twitter.com/Lonniea39", "https://www.facebook.com/SAPBWConsulting" ], "url" : "https://www.sapbwconsulting.com" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com#logo", "@type" : "ImageObject", "caption" : "SAP BW Consulting, Inc. logo", "url" : "https://www.sapbwconsulting.com/logo.png" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/about-lonnie-ayers#person", "@type" : "Person", "name" : "Lonnie D. 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