CFOs: Why automation is key to real-time reporting (guide)
Posted: Sat Dec 21, 2024 4:36 am
Reporting remains critical in finance departments. CFOs have always focused heavily on the analytical side of finance, as this is a critical aspect of any modern business and an important parameter in understanding how a company is performing.
The role of CFOs, whether they compile these records themselves or commission others to produce accurate reports, is not limited to presenting numbers: they are professionals who must write useful reports for management and key business stakeholders.
Therefore, they must understand the metrics, indicators and performance objectives that must be achieved for the organization to move forward.
Traditionally, the job of CFOs was like looking back in a rearview mirror: they reviewed financial reports and balance sheets to determine the state of the business at the end of a particular period.
But the world has changed.
Financial reporting remains highly important, but technology and data availability allow companies to access real-time information on business performance and even how germany email list they will fare in the future. There is untapped potential in what is considered a legal requirement in most countries.
For this reason, the role of CFOs has changed.
Instead of just being financial leaders, they now have to actively drive the business through finance. They have a variety of intelligence and predictive analytics tools at their disposal to do this , and machine learning and artificial intelligence are likely to change the technology landscape even further.
Start of marked textShare! And download the free guide “CFO 3.0 Digital transformation beyond financial management”End of marked text
The impact of automation on financial reporting
Financial reporting is crucial for any business, necessary for performance and in areas such as regulatory compliance and investor relations.
This means that CFOs and their departments are under pressure from the business to obtain more useful financial data such as:
The company's mandate to improve the quality of financial and accounting data
A management objective focused on improving the productivity of the financial and accounting team staff
Demand from data subjects for access to financial data, as well as the need for more frequent disclosure (monthly rather than quarterly or annually, for example)
Need to expand financial reporting with other types of performance data
Businesses should look to automation as a reliable method to improve the quality of financial data and increase the productivity of finance and accounting staff.
Automation offers an alternative to the constraints of lengthy transactions and data collection, and can reduce the time and cost of key processes such as invoicing, reporting, general accounting and budgeting by 46%, according to PWC’s 2017 Financial Effectiveness Criteria Report .
Automation enables companies to:
Minimize the manual intervention required for finance and accounting tasks such as accounting entries and reconciliations
Reduce potential human errors
Make better use of staff working time by reducing manual processes
Improve and speed up deadlines
Through automation and the use of integrated business systems that function as an auditable system of record, CFOs and their teams can leverage technical possibilities to make them more effective and useful for the business.
The role of CFOs, whether they compile these records themselves or commission others to produce accurate reports, is not limited to presenting numbers: they are professionals who must write useful reports for management and key business stakeholders.
Therefore, they must understand the metrics, indicators and performance objectives that must be achieved for the organization to move forward.
Traditionally, the job of CFOs was like looking back in a rearview mirror: they reviewed financial reports and balance sheets to determine the state of the business at the end of a particular period.
But the world has changed.
Financial reporting remains highly important, but technology and data availability allow companies to access real-time information on business performance and even how germany email list they will fare in the future. There is untapped potential in what is considered a legal requirement in most countries.
For this reason, the role of CFOs has changed.
Instead of just being financial leaders, they now have to actively drive the business through finance. They have a variety of intelligence and predictive analytics tools at their disposal to do this , and machine learning and artificial intelligence are likely to change the technology landscape even further.
Start of marked textShare! And download the free guide “CFO 3.0 Digital transformation beyond financial management”End of marked text
The impact of automation on financial reporting
Financial reporting is crucial for any business, necessary for performance and in areas such as regulatory compliance and investor relations.
This means that CFOs and their departments are under pressure from the business to obtain more useful financial data such as:
The company's mandate to improve the quality of financial and accounting data
A management objective focused on improving the productivity of the financial and accounting team staff
Demand from data subjects for access to financial data, as well as the need for more frequent disclosure (monthly rather than quarterly or annually, for example)
Need to expand financial reporting with other types of performance data
Businesses should look to automation as a reliable method to improve the quality of financial data and increase the productivity of finance and accounting staff.
Automation offers an alternative to the constraints of lengthy transactions and data collection, and can reduce the time and cost of key processes such as invoicing, reporting, general accounting and budgeting by 46%, according to PWC’s 2017 Financial Effectiveness Criteria Report .
Automation enables companies to:
Minimize the manual intervention required for finance and accounting tasks such as accounting entries and reconciliations
Reduce potential human errors
Make better use of staff working time by reducing manual processes
Improve and speed up deadlines
Through automation and the use of integrated business systems that function as an auditable system of record, CFOs and their teams can leverage technical possibilities to make them more effective and useful for the business.