What is the best data for evaluating performance and where does that data reside in an organization? Those are two questions challenging CFOs today. And, as much as finance teams struggle to identify the right data for evaluating their own company’s performance, determining exactly what and how much to report to third parties is also a challenge. According to the latest Adaptive Insights CFO Indicator Report, CFOs say that keeping data siloed within departments is one of the biggest financial mistakes that most companies make. A blog this week discusses the impact of data silos on the organization, and what some CFOs are doing to break down these silos.
Planning and reporting are also major themes this week. As companies work to meet SEC guidelines, they may be providing more information than their investors can consume. Find out how companies and regulators are coming together to determine what is the right level of data to report to shareholders. On the tax front, the IRS has released 2016 pension limits and guidelines, enabling finance teams to begin the process of determining how these guidelines will impact employees approaching retirement age.
Finally, another research study indicates that CFOs are partnering more closely with CEOs, taking on a much more strategic role within their organizations. The report identifies this partnership as one of the defining characteristics of a well-run, market-leading organization.
What is the biggest financial mistake most companies make? The majority of CFOs polled in a recent study believe data silos negatively impact organizations and, with the amount of data expanding exponentially, it appears that many believe investing in technology as one way of addressing these issues. (via Addicted to Adaptive Blog)
CFOs aren’t the only ones on information overload. Some regulators want organizations to sharpen their focus when it comes to shareholder reporting. At the same time, though, requirements differ from regulator to regulator, lengthening the list of what organizations feel they must report in order to avoid a lawsuit. Can government and industry come together to deliver a more useful set of reporting metrics for investors? See what’s being done to address this issue. (via Wall Street Journal)
While most limits remain unchanged, there are some cost-of-living updates in the 2016 dollar limits for pension plans issued by the IRS last week. Payroll staffers can help in determining how these rules affect your organization in the upcoming tax year. (via CFO Daily)
According to a recent study, CFOs are taking on more strategic roles within their organizations and will need to develop an increasingly more collaborative role with their CEOs. In addition, the two will have to work together in order to effectively transition to a digital business model. Read more about the study and the steps that can be taken to confront this challenge. (via CGMA Magazine)
What do you like to read as a modern finance leader? Tweet your top picks to @AdaptiveInsight, and read next Friday’s edition to see if your story made our list of CFO Must-Reads!