As the US economy emerges from the pandemic, digital transformation is accelerating in finance. This shift is motivating today’s CFOs to take a more strategic approach to technology adoption.
In a survey conducted by CFO Dive, an independent research company, CFOs, CEOs, and other executives in US companies shared insights on the current state of the finance organization. The data revealed that finance executives are forecasting beyond the management of cash and working capital. They are harnessing new technologies that enable them to play a more significant role in their company.
The most innovative leaders are sustaining their businesses and growing through thoughtful financing. They know the future of finance includes strategizing and predicting industry trends and having complete visibility into the business.
Why Technology Adoption has Accelerated
Today’s CFOs have the rare opportunity to be architects of business transformation and redefine resiliency. They’re vigorously creating strategies and implementing solutions to future-proof their enterprise endeavors. These CFOs conquer by ensuring finance functions guide their company through nebulous circumstances—such as a global pandemic.
Fast-growing companies are actively investing in the financial tech stack to withstand unprecedented times. Based on the survey, 45.6% of CFOs are driving value by adopting modern technology.
In 2020, CFOs were constantly putting out fires. COVID-19 was incredibly disruptive to businesses, which led to an increase in digital adoption. New technology helps companies overcome uncharted challenges by supplying resources to individuals working from home.
New, real-time data that was accessible to the finance team improved visibility. Due to the pandemic, CFOs had an opportunity to implement better solutions, access valuable financial resources, and maximize their future resilience.
Today’s CFOs have been prioritizing technology that streamlines their business workflows. These streamlined processes have helped reduce manual, time-consuming, and error-prone processes while providing real-time analytics that drives enterprise value. By achieving this workflow, CFOs and their team were able to holistically access resources and complete projects on time, all from the comfort of their home.
Building Resiliency is a Top CFO Goal
There is no finish line in running a business, but you can reach milestones and deadlines by implementing the right technology. According to the survey, 56% of CFOs indicated that building business continuity and resiliency is their most important goal. In addition, when asked how they would achieve these business goals and objectives, 30.4% indicated that it would be through adopting new technologies.
The old, tired expectations of manual, in-office work have reached their demise. The CFO and finance team are building an advanced technology stack to maintain employee satisfaction, reduce risk and fraud, mitigate stress, and reduce costs to achieve resiliency.
A best-in-class financial tech stack eliminates tedious manual tasks and empowers employees to recognize their value. Automation assists the finance team in planning, forecasting, accounting, and budgeting—critical functions that helped businesses during COVID 19.
In today’s digital climate, organizations require data to be flexible and accessible. Finance processing should expand and enhance the CFO’s strategies and decision-making processes. Data available on the fly provides immediate insights for a CFO and their team, which keeps their head above water during the most turbulent times.
The CFO’s secret to their business survival during a pandemic? They take their window of opportunity to upgrade and embrace new technology and strategies. They give their enterprise space to grow. Adapting to modern technology and strategies is a straightforward way to build resilience in difficult times.
Digital Transformation is the Wave of the Future
Hindsight is 20/20. When asked if the finance function should have invested more aggressively in digital transformation two to five years ago, 64% of respondents said “yes.” In addition, 58.7% indicated that they have recently accelerated their digital transformation for finance-related processes to amend their prior missteps.
The race is on to enhance business workflows and adopt new technology. 2020 proved that committing to old, traditional processes hinders a company’s tenacity. Embracing change and strategizing with new systems drives business growth—and reinvents tomorrow.
The era of finance being a back office, accounting procedure is long gone. Finance encompasses a deep part of a company, they’re the heavy lifters that influence resiliency. The finance team drives digitization. They’re not reactive but proactive, and they provide the needed data that buoys the entire organization and directs them to success.
