In this episode of Conversations with Kip, I highlight that the costs of the financial systems far exceeds the ongoing cost of the finance department.
As I have explained this in talking about finance system replacement, I note that the finance system touches all automated transactions in the organization; every transaction that hits the financial record of the business in an automated way goes through the finance system.
That’s why replacing all aspects of a finance system is not just a heart and lung transplant, it’s also a circulatory system transplant.
And the costs of finance systems, which in many cases were built decades ago, far exceeds the ongoing costs of the finance department. All finance staff could be laid off for multiple years and not recover the costs of replacing the total finance systems in a large organization.
In the next few episodes we’ll discuss more about these and other finance costs. This is a supplemental (yea, I forgot to release this video when I released the others in the series) Episode of Conversations with Kip, the best financial systems vlog there is.