# Why finance needs to collaborate to get rid of internal worries
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2019-08-01
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Maximising Cost Control Through Collaboration with
Meta Description: Learn how collaboration with procurement can help finance professionals combat cost issues and improve overall cost control in uncertain economic conditions.
URL: https://financedigest.com/why-finance-needs-to-collaborate-to-get-rid-of-internal-worrieshtml

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_By **Daniel Ball**, Business Development Director,_ _Wax Digital_

Amid a backdrop of uncertain economic conditions, today’s Chief Finance Officer (CFO) is frequently tasked with navigating the impact of both internal and external pressures often outside of their control. According to ICAS, the professional body of chartered accountants, cost control is keeping finance professionals awake at night more than anything else, closely followed by growing revenues and then recruitment and retention.Mitigating against business risk is also another factor on the CFO’s radar.

If finance professionals fail to get their internal house in order, on matters such as cost management, growth, [risk management](https://www.financedigest.com/treasury-and-risk-management-application-market-to-bring-in-revenue-of-us-7-1-bn-by-2028-comprehensive-research-report-by-fmi.html "Treasury and Risk Management Application Market to bring in revenue of US$ 7.1 Bn by 2028 – Comprehensive Research Report by FMI") and staffing, they will have less time to focus on strategy and forward planning in often difficult and changing markets.

To combat these internal challenges finance must consider how they can become more collaborative by building internal supportive relationships, rather than operating independently. And finance’s relationships with other teams, procurement being one example, can [potentially hold the key](https://www.financedigest.com/modified-starch-market-potential-growth-share-demand-and-analysis-of-key-players-forecasts-to-2032.html "Modified Starch Market Potential Growth, Share, Demand and Analysis of Key Players – Forecasts to 2032") to solving these internal pressures:

1. [**Cost control**](https://www.financedigest.com/back-to-basics-for-cost-control-as-the-usual-levers-lose-value.html "Back to basics for cost control as the usual levers lose value")

Cost control frequently tops the list for CFOs as it counters against the risk of weaker than [anticipated growth](https://www.financedigest.com/kids-oral-care-products-market-sale-is-anticipated-to-boost-with-tremendous-growth-by-2030-due-to-health-awareness-of-kids.html "Kids Oral Care Products Market Sale Is Anticipated To Boost With Tremendous Growth By 2030 Due To Health Awareness Of Kids"). Spend management across the [business is an essential part of cost](https://www.financedigest.com/esg-prepared-why-ignoring-esg-is-a-costly-business.html "ESG Prepared: Why Ignoring ESG is a Costly Business") control and it’s here that collaboration with procurement can help finance professionals.

Controlling [spend is a challenge for most organisations unless it is managed effectively](https://www.financedigest.com/dutch-to-spend-16-billion-to-cushion-effects-of-inflation-media.html "Dutch to spend billion to cushion effects of inflation -media"). For example, out of budget purchasing has the [potential to cause serious cost issues for any type of business](https://www.financedigest.com/the-real-potential-of-web-3-0-and-blockchain-for-business.html "The Real Potential of Web 3.0 and Blockchain for Business"), regardless of their financial situation. However, cost control through spend management is a key part of procurement’s remit and it’s their job to [set and enforce procurement guidelines on price](https://www.financedigest.com/oil-prices-set-for-weekly-fall-on-stockpile-releases.html "Oil prices set for weekly fall on stockpile releases") and supplier choice. However, despite these tight spend regulations,now and again, individuals will circumvent the process and set up their own supplier relationships, therefore, undermining the whole spend management process.

[Finance can work with procurement](https://www.financedigest.com/trouble-in-paradise-the-great-procurement-and-finance-disconnect.html "Trouble in paradise: the great procurement and finance disconnect") to eliminate unregulated spend. Some procurement teams will use spend analysis tools to help them pool [data](https://www.financedigest.com/shock-data-logger-market-2021-outlook-current-and-future-industry-landscape-analysis-2029.html "Shock Data Logger Market 2021 Outlook, Current and Future Industry Landscape Analysis 2029") into meaningful analysis, helping them spot any anomalies and devise a plan to put a stop to it. In fact, eProcurement tools can help organisations gain better visibility across all spend and help procurement to realise buying power in different spend categories – all contributing to improved cost control.

Successful spend strategies depend on good data, structured processes and [insightful analytics and one of the CFO’s key challenges](https://www.financedigest.com/insights-on-the-flexible-packaging-global-market-to-2027-key-driving-factors-and-challenges.html "Insights on the Flexible Packaging Global Market to 2027 – Key Driving Factors and Challenges") is their ability to harness data and use it to power effective decision making.  Procurement can help finance here too as its historical spend data can empower the [business to increase savings](https://www.financedigest.com/how-cloud-computing-saves-businesses-money.html "How cloud computing saves businesses money") and boost organisational efficiencies.

The CFO should also [back procurements’ efforts to encourage a culture of purchasing accountability](https://www.financedigest.com/euro-zone-current-account-swings-back-to-a-surplus-in-june.html "Euro zone current account swings back to a surplus in June") in the business where all departments are made responsible for their own spending. Each [department manager](https://www.financedigest.com/untapped-cost-savings-why-smart-building-management-systems-are-a-finance-department-priority.html "Untapped Cost Savings: Why Smart Building Management Systems are a Finance Department Priority") should be aware of what his or her team is purchasing, what they are spending it on and who they are buying it from, all against pre-agreed budgets.

2. [**Mitigating business risk**](https://www.financedigest.com/new-isla-standards-provide-the-foundation-for-resource-optimisation-efficiency-and-risk-mitigation.html "New ISLA Standards Provide the Foundation for Resource Optimisation, Efficiency and Risk Mitigation")

From financial compliance through to understanding the wider [threats](https://www.financedigest.com/the-future-of-finance-how-to-defend-against-the-top-threats-to-cloud-security.html "The Future of Finance: How to defend against the top threats to cloud security") to the business, risk management has increasingly become the responsibility of the CFO. According to Deloitte’s [second-quarter 2018 CFO Signals report](https://www2.deloitte.com/us/en/pages/finance/articles/cfo-signals-strong-optimism-trade-policy-geopolitics-loom-large.html), 55% of CFOs said that they are responsible for their company’s enterprise risk management.

Supplier risk is a [growing threat to businesses](https://www.financedigest.com/philanthropy-is-an-underrated-tool-for-growing-financial-services-businesses.html "Philanthropy Is an Underrated Tool for Growing Financial Services Businesses"). The collapse of Carillion and uncertainty over trade conditions has seen procurement take sensible steps to gain better visibility and understanding of the [supply chain and improve supplier relationship management](https://www.financedigest.com/supply-chain-management-bpo-market-is-thriving-with-rising-latest-trends-2014-2020.html "Supply Chain Management BPO Market Is Thriving With Rising Latest Trends 2014 – 2020") (SRM). Today’s [supply chains](https://www.financedigest.com/how-can-businesses-digitalise-supply-chains-to-meet-demand.html "How can businesses digitalise supply chains to meet demand?") have become increasingly complex and increased visibility is required so that danger signs can be identified before a situation escalates causing disruption.

Today’s forward-thinking organisations are using SRM software to source suppliers, [communicate with them more effectively](https://www.financedigest.com/tips-for-effective-debt-chasing-communications.html "Tips for effective debt-chasing communications") and to carefully monitor contracts. This level of risk management comes as welcome relief to CFOs, who are reassured that the wider [business is doing everything it can to manage](https://www.financedigest.com/intelligent-receivables-management-why-its-a-businesss-greatest-ally.html "Intelligent Receivables Management: Why it’s a business’s greatest ally") potential risk from suppliers.

3. **Staff retention**

Wax Digital’s [research](https://www.waxdigital.com/blog/invoices-bane-finance/) has shown how the repetitive and laborious task of manual invoice processing puts significant strain on finance teams, which in turn,takes its toll on job performance and satisfaction.

The research showed that [finance professionals are concerned about the impact of manual invoice management](https://www.financedigest.com/how-application-management-can-help-tackle-the-finance-industrys-carbon-emissions.html "How application management can help tackle the finance industry’s carbon emissions"). It’s not only time consuming from an [operational efficiency](https://www.financedigest.com/finance-operations-efficiency-7-ways-to-slick-up-your-department.html "Finance operations efficiency – 7 ways to slick up your department") perspective, but it’s damaging impact on staff morale could be a contributory factor to them wanting to leave. In fact, over 60% of AP clerks stated that processing invoices is the task they hate the most, with the majority claiming they find the job lengthy, tedious and frustrating.

However, eProcurement software is helping many organisations eliminate these slow, laborious, error prone financial tasks – including invoice [processing – from their daily routines by fully automating](https://www.financedigest.com/what-businesses-can-achieve-with-microsofts-full-suite-of-process-automation-tools.html "What businesses can achieve with Microsoft’s full suite of process automation tools") it.The procure to pay process accounts for nearly one third of the overall cost of [finance and procurement operations](https://www.financedigest.com/stellantis-reshuffles-european-financing-operations-through-new-jvs-with-banks.html "Stellantis reshuffles European financing operations through new JVs with banks"). Taking advantage of software helps remove this tedious task from the [finance team](https://www.financedigest.com/finance-teams-using-ai-outperform-peers-as-demand-for-skills-grows.html "Finance Teams Using AI Outperform Peers as Demand for Skills Grows"), freeing them up to do other more meaningful jobs with the potential to lead to greater job satisfaction.

There’s a lot to be gained from a more [collaborative approach](https://www.financedigest.com/the-importance-of-a-proactive-and-collaborative-approach-to-reducing-contactless-fraud.html "THE IMPORTANCE OF A PROACTIVE AND COLLABORATIVE APPROACH TO REDUCING CONTACTLESS FRAUD") to business challenges by the CFO. Feeding into many of its key concerns, procurement is well placed to contribute to cost control, supplier risk, and the tools it uses can also save the finance teams hours of monotonous data-entry [time having a positive impact](https://www.financedigest.com/analysis-financial-literacy-or-luck-the-year-small-time-traders-made-a-big-impact.html "Analysis-Financial literacy or luck? The year small-time traders made a big impact") on recruitment and staff retention. [Improved internal](https://www.financedigest.com/efg-international-says-profitability-improved-in-first-nine-months.html "EFG International says profitability improved in first nine months") collaboration with other business functions such as procurement and being open to new ideas on working together could be the key to helping CFOs sleep better at night.


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