Manufacturers battle with financial fault lines as business climate changes

That’s chief among findings of a survey commissioned by ACL Services across the UK, North America and Germany. It reveals that 58% of the manufacturers surveyed had either merged, been acquired or undergone a departmental merger in the past 12 months. Respondents suggest that 82% of businesses have undergone some level of change in their financial analysis applications in that period, and that almost half (49%) of their financial systems have been undermined by operational change. This, they say, leaves them struggling to control errors: one in three businesses are exposed to regular finance department errors, while 58% are seeking to improve the effectiveness of financial transaction analysis. Also, 39% agree that finding a balance between optimal internal controls versus over-managed systems that can’t keep pace is an ongoing struggle. Commenting on the survey, ACL Services president and CEO Harald Will says: “It appears that enterprise financial systems and processes within the manufacturing sector are buckling under the pressure of constant change. “Even seemingly simple changes to business structures, such as the merger of a department or a move to a shared services centre, can involve massive financial consolidation and upheaval. Constant change equals greater risk and businesses need to have much tighter systems and monitoring in place to manage both.” Indeed, potential financial pitfalls brought about by change are already being felt by businesses. 17% of companies admit to experiencing financial loss due to poor risk management; 4% have been asked to improve their processes by regulators; and 8% have already been fined for deficient compliance controls.