The role of finance within organizations is changing. Gone are the days when you spent most of your time manually inputting data into spreadsheets (yawn!).
Thanks to new technologies, many of the most tedious and mundane tasks can be (or have been) automated. Finance can now step up and offer its unique expertise to influence better-informed decisions that help drive the business forward.
But what is finance transformation? And why is it so important to modern CFOs and their teams?
In this article, we’re diving into what finance transformation means, the key drivers of it, and why it’s something that needs to be on your radar in 2023 and beyond.
- What is finance transformation?
- Why is finance transformation so important?
- 10 Key drivers of digital transformation.
- Finance transformation progress within organizations.
- Budgeting for finance transformation.
What is finance transformation?
Finance transformation refers to tactical initiatives that help transform the finance function by assessing and improving its strategy, vision, processes, and systems to better align with the company’s overall strategy.
Finance transformation is evolving exceptionally fast, and things have escalated that much faster (and further) since the dawn of COVID-19.
The pandemic saw a spike in demand for more effective and efficient ways to complete repetitive and mundane tasks. From collecting data business-wide to automating daily processes, finance transformation has proven to generate positive change across the entire organization.
Suddenly, finance professionals are no longer siloed to adding numbers to lengthy spreadsheets. Those days are a thing of the past. Or at least they can be if your organization invests in new technologies to help streamline existing processes and ease the workload.
Why is finance transformation so important?
It’s the question on top of everyone’s minds, so let’s address it. Why should finance professionals care about implementing technology at all? And why is it so important?
Finance transformation is important for several reasons. It can help organizations improve the efficiency and effectiveness of their financial operations, which can lead to cost savings and increased profitability. It can also help organizations better understand and manage their financial performance, which can inform decision-making and strategy.
Additionally, finance transformation can help organizations adapt to changing business environments and regulatory requirements and can position them for future growth and success.
In our recent State of Finance Transformation Report 2022, we asked a few finance experts to share their thoughts on why more finance teams need to become advocates for finance transformation within their organizations.
Here’s what they had to say: