The Transformation of the CFO Role through Automation

In the realm of finance, a quiet revolution is unfolding. It's not driven by economic turmoil, but by technology. This revolution is financial automation, and it's changing the CFO's role dramatically. In this article, we'll explore how automation empowers CFOs to focus on strategy and innovation, ushering in a new era of financial leadership
Picture of Elizabeth Jenkins-Smalley

Elizabeth Jenkins-Smalley

Editor In Chief at The Executive Magazine

In the ever-evolving landscape of modern business, the role of Chief Financial Officer (CFO) is undergoing a profound transformation. Software development consultancy and Sage Platinum Partner, Xplor Solutions UK, sheds light on how automation is revolutionising the CFO’s responsibilities, enabling them to direct their attention towards strategic initiatives that drive business growth.

As a CFO, the demands of the corporate world require a shift towards more strategic decision-making. Your time becomes a valuable commodity as you assume increasingly strategic responsibilities. This is where automation steps in, serving as a trusty assistant that handles the mundane and repetitive tasks, allowing you to focus on high-value strategic initiatives.

Research data indicates that by automating the financial close process, a CFO can save up to 24 working days annually, thereby unlocking three times more time for critical thinking and decision-making.

In this article, we delve into how automation empowers organisations to take control of manual processes, liberating their finance teams to concentrate on crucial strategic activities.

Automation Unlocks Time Savings, Precision, and Efficiency

Manual processes are inherently prone to errors that can lead to costly consequences. Automation steps in to minimise the risk of human error, ensuring data integrity.

Automation, combined with the capabilities of artificial intelligence (AI), seamlessly streamlines accounts payable (AP) invoice processing workflows. For example, in Sage Intacct, invoices are captured and analysed through machine learning algorithms, which identify and process data based on historical actions. This system automatically assigns appropriate dimensions and sets approval stages, reducing the need for manual intervention. It intelligently captures details from invoices, including vendor data, line-item specifics, and billing information, ensuring a highly efficient, error-free, and swift approval process.

What AP Automation Looks Like in the Real World

Michelle Pyle, former finance director at Johnny’s Selected Seeds, attests to the transformative power of Sage Intacct AP automation. She highlights that AI-driven features simplify the review process of bill data, ensuring a smooth workflow. Automation has enabled the organisation to transition from paper checks to electronic payments, saving time and providing real-time data crucial for innovation.

Cambio Community, which specialises in revitalising manufactured home communities, also reaps the benefits of Sage Intacct AP Automation. This automation streamlines the accounts payable process and accelerates vendor payments, facilitating the procurement of supplies and labor efficiently.

View Real-Time Access to Vital Financial Information

The days of waiting for manual reports or navigating through spreadsheets for a comprehensive view of an organisation’s financial health are long gone. Automated systems provide access to up-to-date dashboard data with a few clicks, enabling timely strategic decisions and rapid responses to market fluctuations.

Automation Assists with Compliance

CFOs shoulder the responsibility of maintaining accurate and transparent financial records, navigating an ever-changing landscape of compliance regulations. Automation comes to the rescue by streamlining compliance processes, ensuring adherence to regulatory requirements, and reducing non-compliance risk. It enhances audit readiness, fostering stakeholder trust.

Colin Cunningham, CFO at SaaS firm OnBoard, underscores the importance of avoiding manual processes and embracing automation. He emphasises the need to leverage new technology and systems to streamline processes effectively.

Automated Reporting: The Backbone of Informed Decision-Making

The manual compilation of reports can be labor-intensive and prone to errors. Finance automation tools streamline the reporting process, saving valuable time. Financial reporting automation eliminates manual data entry, reduces error risks, and enhances reporting accuracy and efficiency. It automatically collects and consolidates data from various sources, ensuring that reports are based on real-time, reliable data. This frees up more time for data analysis and strategic insights to propel business growth.

Michelle Delker, founder and CEO of the William Stanley CFO Group, emphasises the transformative power of comprehensive and automated reporting systems. She notes that such systems accelerate the close process, allowing more time for financial analysis and actionable insights.

Other Real-World Applications of Financial Automation

Beyond the realms of reporting, financial automation offers a broader spectrum of benefits:

  • Budgeting and Forecasting: Automation tools replace manual spreadsheets, creating dynamic budgeting and forecasting models that update in real-time.
  • Financial Consolidation: For those managing multiple entities or complex financial structures, finance automation tools simplify the consolidation process by drawing financial data from various sources.
  • Automated Variance Analysis: Automation calculates and presents variance analysis automatically, helping identify key drivers for financial performance.
  • Customisable Reporting Templates: Finance automation provides customisable reporting templates for generating professional, consistent reports tailored to audience requirements.

Beyond Reporting – Automation’s Broader Impact

Automation’s impact extends far beyond reporting. It enhances accuracy, consistency, and speed, ultimately improving business performance. With time freed up, CFOs can spearhead transformative projects, from adopting new technology to expanding into new markets.

The path to leveraging automation effectively involves several key steps:

  1. Identify Key Areas for Automation: Evaluate current processes, pinpointing repetitive tasks that consume significant resources.
  2. Evaluate Automation Tools: Explore various automation tools tailored to address specific challenges.
  3. Engage Your Team: Encourage your team to embrace automation and cultivate a mindset of continuous improvement.
  4. Continuously Assess and Improve Processes: Regularly evaluate automated processes and ensure that automation tools remain updated and optimized for peak performance.
  5. The Human Impact of Financial Automation

Automation’s benefits extend beyond process streamlining. It positively impacts work-life balance and the well-being of every team member. Liberated from tedious tasks, employees can focus on more fulfilling work, leading to increased motivation and engagement.

Automation also mitigates burnout risks associated with repetitive tasks and long working hours. Employees can perform more efficiently, leaving ample time for personal activities and quality time with loved ones.

Is AI the Final Frontier of Financial Automation?

AI presents the potential to revolutionise finance further by automating complex, data-driven processes. Machine learning algorithms, with insights from extensive data sets, identify trends, predict outcomes, and provide invaluable insights that human analysts may overlook. AI processes and analyses data at a pace far beyond human capabilities, providing a sustainable competitive edge and enabling swift, informed decision-making. Real-time identification of trends and patterns allows proactive actions in portfolio management, risk assessment, and financial forecasting. Consideration is given to AI-powered chatbots for customer service inquiries and automated payment systems for seamless transaction processing. However, it’s vital to recognise that AI should complement, not replace, human intelligence. Successful AI adoption hinges on finding the right balance between human insight and machine intelligence.

Final Thoughts: The Future of Finance in the Age of Automation

The financial landscape is evolving rapidly, and automation stands at the forefront of this transformation. As a CFO, you have a critical choice to make: Will you embrace automation and steer your organisation toward success, or let change sweep you away?

The key takeaway is clear but game-changing: Automation does not aim to replace the human element; it aims to enhance it. By automating routine tasks, you unlock valuable time that can be invested in strategic planning, innovation, and driving business growth.

Automation empowers you to become a formidable strategic leader, firmly guiding your organisation towards a prosperous future.

In conclusion, the question is not whether you will adopt automation but how soon you will embrace it to become the forward-thinking CFO your business needs in today’s ever-evolving economic environment.

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