Technology
The modern CFO: Why it’s their time to lead technology transformations
Global Banking & Finance Review®
Company
By Dynshaw Italia, Chief Financial Officer at Soldo
Environmental concerns, economic turbulence, the cost-of-living crisis, and global trade issues are just some of the macro issues businesses are facing today. In this uncertain environment, the challenges CFOs are up against are constantly changing and therefore the need for the right practices and tools to help finance teams be more flexible is growing.
Old-school manual processes don’t cut it anymore, and businesses need to embrace technologies that provide a sharper picture of the business to help make future predictions more reliable. CFOs are in the best position to harness the power that comes from better insight, more informed forecasting and strategic thinking – all of which equip a business to handle and succeed in the face of unexpected change and offer a competitive edge during times of uncertainty.
How the role of the CFO has changed
In the last two years, we’ve seen the requirement for many businesses to digitally transform across all areas – not only to keep the lights on but also to survive. However, digital transformation is not just about moving to the cloud or overhauling IT systems, instead, it involves infusing technology into strategy discussions and processes across the organisation. For the finance leaders, this means ditching manual processes and adopting finance automation – freeing up teams to spend more time on strategic tasks but also having access to real-time data and visibility and control over spending – all things that in turn boost the bottom line.
Long gone are the days when the CFO’s job was to be responsible for managing the finance and accounting divisions of a business, now they are wearing more hats than ever. But as businesses navigate murky waters, it is now a must for forward-looking CFOs to harness technology so they can be best prepared for potential challenges now and into the future.
Technology is allowing CFOs to do more
Traditionally, manual methods of business spend management are frustrating and time-consuming. This could involve updating spreadsheets manually, back-and-forth email conversations, and lengthy month-end reconciliations. Paper invoices might be collected and then checked by hand before being stored in a filing cabinet. And when it comes to expenses, company cards might be shared between individuals, or employees may be asked to pay out of pocket for food or fuel before claiming money back. These legacy methods of data collection can’t be relied upon and are likely to lead to incomplete or error-ridden data. When this happens, it’s difficult for finance teams to make accurate assessments or adapt to new demands when conditions inevitably change.
What’s more, manual tasks and tedious admin are repetitive and can make the most promising job roles feel unfulfilling and frustrating. By adopting technology like expense management tools, unnecessary admin can be cut – making work more enjoyable and fulfilling as employees can focus on creative and strategic work.
Unlocking a treasure trove of data
Visibility and control of spend across the entire business is more important than ever as CFOs tighten the purse strings in the current economic climate. CFOs need to understand spending in real-time – as they can no longer wait until the end of the month to tally up what’s gone in and out. Soldo’s spend management platform provides an insightful dashboard – unlocking fast, data-rich reports without the risk of mistakes, repeated entries or gaps in the data – so finance leaders can be more confident in taking action supported by accurate decisions. As a result, the finance team can gain greater control over how company money is being spent while providing better strategic insight and more informed forecasting to other areas of the business. In addition to this easy-to-use mobile apps for employees to submit expenses cuts down time and error caused by manual processing.
The businesses succeeding in today’s environment are those that are using the right tools to maximise each and every individual’s time and productivity so they can be as effective as possible. Freeing finance teams from tedious data entry not only achieves nirvana but also provides full visibility for finance leaders, enabling greater adaptability than ever. With effective tools and practices in place, CFOs can not only overcome the ongoing range of challenges that are feeding today’s uncertainties but also boost corporate resiliency with more effective financial oversight.
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