VDR as a Finance Corporation Management Tool

In a market economy, the demand for financial information is very high. To meet the information needs of all stakeholders, a modern enterprise must construct an orderly flow of its financial data. VDR can help to do it.

Information support of the financial management process

A necessary tool for managing the system of financial relations at the corporate level in a market environment is a clear understanding of the relationship of all factors influencing the overall level of financial condition. To do this, it is necessary to properly use not only financial levers and incentives but also to understand their economic and mathematical basis, to be able to effectively apply all methods and technologies of corporate finance management.

 The specifics of the corporation’s functioning as a complex hierarchical structure with a large number of departments of different functional areas require constant monitoring of its separate centers and mandatory implementation and use of the latest information technologies and systems.

Financial information is a set of data (systematized in a certain way) about the state:

  • economic resources, liabilities, and financial resources of the firm;
  • the level of income and expenses that allow us to judge the expected income and associated risks;
  • turnover of the firm and the quality of its assets;
  • volume and quality of cash flows.

Restructuring of financial management expands the possibilities of using automated information systems (AIS), improves the quality of financial management solutions at various levels. At the same time, AIS is created not next to and not in parallel with the financial management system, but as its organic part. Today, AIS is becoming an integral part of financial authorities and other financial management structures. An example of such a system is Virtual Data Room (VDR).

The use of the Data Room based on the use of economic and mathematical methods increases the efficiency of analytical work. This is achieved by reducing the time for analysis; more complete consideration of the impact on business results and coverage of factors; replacement of approximate or simplified calculations with exact calculations, formulation, and solution of new multidimensional analysis problems, practically impossible by manual and traditional methods.

Virtual Data Room – an effective finance corporation management tool

Data Room is a complex solution in the field of corporate content management and information security of an organization. The software provides the highest level of security when working with documents containing sensitive information.

So, let`s consider the following advantages of implementing VDR finance:

  • Integration of all aspects of activity: unification within one integrated system of all business processes which allows planning activity of the enterprise better.
  • Access to the database in real-time: in this system, the entry of information into the database occurs directly from the source, bypassing the intermediate stages, after which the data becomes available to all interested parties.
  • Formation of organizational integrity of the enterprise: the system makes it possible to create a single information space that allows the exchange of organizational developments and financial statements between structural units.
  • Elimination of information imbalance: a single base of ERP-system, which covers the entire flow of information from different structures of the organization, eliminates the possibility of information incompatibility of the system, which significantly improves the quality of information and provides ancillary benefits in decision making.
  • Improving the competitiveness of the enterprise: acquired through the rational use of information resources that allow a better assessment of the situation at the enterprise and allows you to accurately predict future activities.