Efficiency losses can stem from a variety of causes, hidden throughout financial processes
SUMMARY
This article explains the three main causes of inefficiency in collaboration during the operation of financial processes in mid-sized companies.
We explore the top three causes that most impact corporate finance teams.
Reading time: 2 minutes 53 seconds
Why collaboration is often inefficient in Finance processes— and how to fix it
In companies with 100 to 2000 employees spread across multiple departments, collaboration in financial operations (reporting, month-end, budgeting…) is often a source of frustration, delays, and errors. These inefficiencies aren’t just annoying — they slow down decision-making, weaken financial rigor, and increase operational risks. Identifying and fixing the root causes of this inefficiency is essential for any organization seeking to grow, gain agility, and better manage performance.
Cause #1: Lack of a common data repository
The first source of inefficiency lies in the fact that each department works with its own data, files, and assumptions. Consolidated reporting becomes a race for reconciliation, with discrepancies often discovered at the last minute. This stems from the absence of a centralized, accessible system where everyone can collaborate in real time. In many companies, source systems (ERP, CRM, payroll…) are rarely interconnected, and manual exports to Excel become the norm.
To mitigate this cause, it is essential to establish a single source of truth for financial data, automatically fed from reliable systems. A modern solution allows data to be centralized, ensures its quality, and provides a shared foundation for collaborative work. This reduces friction, eliminates duplication, and accelerates decision-making.
Cause #2: Overreliance on shared Excel files
Excel is a powerful tool, but poorly suited for large-scale collaboration. When multiple users work on different files, versions multiply, formulas break, and validations are done manually. This problem is exacerbated when processes are complex and involve several validation rounds across departments. Excel is often favored for its flexibility, but that flexibility comes at the cost of control and security.
The solution lies in adopting a structured collaborative tool that integrates Excel-like logic (grids, formulas, scenarios) in a controlled environment. Modern platforms offer a familiar experience with features like governance, access control, in-context comments, and change tracking — eliminating the risks of scattered files.
Cause #3: Lack of clearly defined roles and responsibilities
Even with the right tools, effective collaboration relies first on well-defined processes. Too often, responsibilities are unclear: who fills in which budget? Who validates assumptions? Who consolidates the results? This confusion leads to unnecessary back-and-forth, delays, and increased workload for finance teams. This lack of clarity is common in growing companies, where processes haven’t kept pace with organizational changes.
To address this, a clear governance model must be established for financial processes. This includes mapping out the steps, defining roles (contributor, stakeholder, approver), and automating follow-ups. A well-designed solution formalizes these steps with integrated workflows, notifications, timelines, and tracking dashboards.
Conclusion
The root causes of financial inefficiency — scattered data, ungoverned files, unclear responsibilities — are often invisible, yet they severely hinder performance. Fortunately, they can be progressively addressed with the right tools and a structured framework. The FP&A SwiftFinance solution was specifically designed to tackle these challenges. By centralizing data, replacing shared files with secure modules, and structuring processes, it empowers finance teams to improve efficiency, transparency, and strategic impact.
Make your life easier
Collaborate more effectively and take control of your operations today!
Make the smart choice with EXIA's FP&A SwiftFinance solution!
Causes of inefficiencies in financial processes