Automation technologies, in particular, change the way users work by taking care of more common administrative tasks, which reduces the number of administrative tasks to be performed by individuals.
This leads to an evolution of the role of the modern finance professional – chiefly that of the CFO – and here Marieke Saeij, CEO of Onguard, presents monthly finance with some of the key changes we should be making. wait to see.
The Need to Develop New Skills
As automation technology gains prominence in the financial sector, CFOs will be able to devote more time to more general issues, such as areas in which they can improve the business. efficiency of their activities, and focus on how to add value to their organization. As a result, they will need to develop new skills, such as analytics, communications and programming. This will enable them to acquire the knowledge and ability to interpret and analyze the data collected in their credit management system, for example, and turn that information into action. CFOs should also look to create new performance indicators to ensure they continue to make the most of their operations and focus more on managing financial processes rather than executing them.
CFOs spending less time on the monotony of daily tasks, they will also be able to take a closer look at personalization and ensure they understand and provide communication channels and payment methods privileged of each customer for his invoices. This will allow the company to interact with customers in the way they prefer to increase the chances of paying bills on time and strengthen existing relationships.
Development of New Strategies
The use of big data in predictive analytics provides CFOs with key information on a wide range of issues, which can be used to improve business decisions and inform decision-making. This will allow them to add strategic value by being proactive rather than responsive because they can use past information to predict the future. For example, a predictive analysis may show that a given client has paid his bills on average within 28 days in the last seven years. This means that it is very likely that he will do the same when he will receive the next bill. CFOs can then use this information to decide how they interact with that customer, looking for payment only after that time.
The introduction of real-time funding cycles could also change the way CFOs operate, as they will no longer use outdated numbers and will not make decisions for potentially inaccurate decisions. . With real-time funding cycles, CFOs will be able to work with the most up-to-date information and be reassured to make business decisions with the latest data available. This will allow them to see if any adjustments are necessary and to act immediately.
Collaboration between departments
Often the siled nature of large corporations harms the effectiveness of a CFO because it means that they lack visibility and are not always aware of the information important. With more time at their disposal, CFOs could collaborate with other departments of the company so that the organization makes the most of all its financial operations. This will help each department better understand the work of other departments, their potential impact on them, and the financial processes involved. This will stimulate greater openness and understanding between teams and could improve the company's credit management processes.
The modern CFO will be very different from the traditional view of the role. However, it is a fundamentally positive thing. With the increased use of more advanced technologies, CFOs will be able to move away from the more mundane everyday financial tasks necessary to ensure business continuity and assume a more strategic, diverse and value-laden role. added.