The finance department uses IT systems and software tools to automate accounting functions, organize data flows, and generate reports for managers. Even small businesses use accounting software, while mid-sized and large companies use more sophisticated enterprise resource planning (ERP) systems. ERP systems help plan resource use and integrate all company departments, allowing real-time information sharing to improve analysis and decision-making. Customizable reporting capabilities in these IT systems automate routine report generation to meet management's time-sensitive needs. Centralized databases also facilitate collaboration across departments globally to access and share necessary data. Access to comprehensive company information from IT systems supports the finance department in creating more accurate forecasts.

1. The finance department in a corporation is in charge of taking accounting data and creating
reports that the managers within the company -- all the way up to the CEO -- need for
decision making purposes. Information technology or IT refers to the software tools and
computer systems the company uses to automate these functions and organize the data
flow to improve the management team’s decision-making capabilities.
Enterprise Resource Planning
Even very small companies use accounting software packages that generate financial
reports such as income statements and cash flow statements. This simple form of IT allows
a small business owner to save accounting time and have management reports available
at quick basis. Midsize and larger companies use more sophisticated IT systems called
enterprise resource planning or ERP, which are groups of software modules that serve the
needs of all functional areas of the company. As its name suggests, ERP helps the company
plan the use of its resources, a process that the finance department oversees.
Faster Flow of Information
IT systems allow a company to link up every department within the organization.
Information generated by the manufacturing, marketing and finance divisions can be
shared for example. This information is available real-time, meaning as soon as it is
created on the system. Accessing it does not require a great deal of research or manual
effort. The time finance staff used to devote to “digging” for the numbers they needed can
now be devoted to analysis and interpreting the information -- finance’s primary role in
the organization.
Customized Reporting
The IT systems used by the finance department have a report generating functionality that
speeds up the process of producing management reports. The system provides a certain
degree of customization -- the reports can be configured based on the specific needs of
the management team. Automation of these reporting systems means that routinely
generated reports, such as those produced at the end of each month, can be created
quickly. With many of the decisions management has to make, time is of the essence. IT
systems address this need for rapid, customized reporting capability.
Collaboration
Many organizations take advantage of collaborative effort across departments, the concept
of each department benefiting from other departments’ expertise. The finance team acts as
in-house consultants to other departments within the organization. When all departments
use a centralized IT system, it drops the barriers that formerly blocked the flow of
information. The company now has a centralized database that all team members can
access -- subject to certain security rules. In the case of a company with multiple offices or
international divisions, this ability to access the same information from around the globe
saves time and improves efficiency. If finance requires manufacturing cost data to create a
report for an upcoming board meeting, operations personnel can quickly transmit the data
in the format the finance department requires and understands.

2. Better Forecasting
Better forecasting means producing a forecast that is a more accurate prediction of what
the company’s financial results are likely to be. Finance staff members need access to in-
depth information to create forecasting models that depict how the organization actually
works. Having access to information from all segments of the company makes accurate
forecasting much easier. Finance has real information and does not have to rely on
guesswork when creating assumptions for the forecast.