Agility and the new role of the CFO
Every company has the goal of growing. The pressure to drive this growth is strong. The digital transformation also requires finance departments to rethink their approach.
At the same time, transaction volumes are increasing, the operating business brings with it global requirements and new or additional regulations make the already complex bookkeeping and accounting even more complex.
Especially around the financial close, accountants often still do a lot of extra work to complete all tasks. Decentralized manual processes and inconsistent workflows lead to these overtime hours and lengthy financial closes that often lack transparency, predictability and accuracy.
This is mainly due to manual and error-prone processes such as the use of spreadsheets.
Cloud-based financial software
However, modern technology helps CFOs to maintain an overview, make decisions based on current figures and always know the company's financial situation. CFOs quickly learn that they can play a more active role in shaping the company with the right strategy and the use of modern software.
One example of how software can support them in this is shown in the financial closing processes: Cloud-based software solutions for Enhanced Finance Controls and Automation (EFCA) and Financial Corporate Performance Management (FCPM) with a connection to the respective ERP system help to establish and simplify standardized and automated processes for the settlement and processing of every transaction across countries - in real time.
Automation and standardization are the most effective way to avoid repetitive, time-consuming tasks and minimize manual processes. This gives accountants the opportunity to focus on value-adding activities.
CFOs are also in a position to take on a new, active role in shaping strategy and corporate management. One of the most important drivers in the introduction of modern financial software is real-time access to an increasing amount of detailed data, which can then be analyzed to provide valuable information.
This allows the finance department to work more actively with the data and thus create added value for the entire company management.
According to Gartner, global IT spending will reach 3.7 trillion US dollars in 2018. Investments in technology are at the top of CFOs' list of priorities.
Financial automation is a catalyst for growth and process improvement. Many companies are also driving digitalization processes forward. This does not stop at the finance function.
However, this also means that finance departments need a responsive, agile strategy in order to be able to implement changes effectively and successfully. This is exactly what technology supports.
Relief from routine tasks
Creating an agile strategy keeps the finance department moving forward to achieve big goals while enabling it to benefit from new technologies. Successful CEOs are forward-thinking and leading the way by establishing modern solutions, freeing employees from routine tasks and benefiting from new technologies.
This enables them to provide their colleagues on the Management Board with up-to-date financial data at any time in order to make reliable business decisions quickly. The position of CFO thus takes on a new, more active role in strategy and corporate management.
