Typically operating independently of each other, AR, AP and finance departments are all too often trapped in their own silos. They collect their data in separate databases and often report to different executives with different short-term business objectives.

As organizations begin to view these functions as strategic operations, rather than just back-room accounting activities, they realize that the siloed approach no longer works. They recognize that the flow of money in and out of their organizations should be viewed as one larger process, and that AR, AP and Accounting are all inextricably connected. Businesses need to have visibility across all of these areas and work off the same data to have an accurate picture of what is really happening in finance.

Using advanced technologies and a Unified General Ledger System approach, the silos will disappear. Data from all of these departments gets entered in one single ledger, resulting in one, accurate set of real-time data that spans the AR, AP and accounting functions. It not only breaks down artificial divisions, but also enables reporting across all these operations and provides meaningful insights into what is really happening in the business at that moment in time. This real-time view is just that. It enables everyone to see the very last item entered into the financial system; accurate financial reporting is no longer stalled while everyone waits for the next batch update from AP – or AR, Payroll or Invoicing – to the general ledger.

Now, companies can view their finance operations more strategically: What can they do to improve cash flow? Where are they falling short in profitability? A single view into the data provides a strategic view, and the ability to gain true competitive advantage.

Do you think it’s important to get a unified view of your data to make better, informed strategic decisions in your business? Please share your thoughts below.