For small and medium-sized enterprises (SMEs), the thought of upgrading current business systems can be daunting. For the CFOs of these SMEs, their risk-averse nature can often conflict with the need to embrace the higher risks associated with a more ambitious vision for a leading finance function.
However, sticking to outdated systems can be more detrimental to your business than you might realize. Changing the culture of your finance team can lead to significant benefits, and close to half of surveyed CFOs agree; a survey conducted by FT-Longitude found that 49% of CFOs are prioritizing the cultural transformation of their finance teams.
Today, as our business world is being driven by innovations in artificial intelligence (AI), process automation, and predictive analytics, it is crucial for businesses to stay on top of these digital technologies. The benefits of upgrading are not only beneficial but even essential for staying competitive as the business landscape rapidly evolves.
Unleashing Productivity through Process Automation
One of the most compelling arguments for modernizing business systems is the dramatic increase in productivity. Finance functions often involve routine activities, such as generating finance reports, which can be a burden on finance teams.
With smart solutions like process automation, repetitive and time-consuming tasks can be automated, freeing up finance teams to focus on strategic activities that drive growth and profitability.
By automating processes, companies can unlock hundreds of thousands of productive hours. This boost in efficiency not only reduces operational costs but also enhances the accuracy and reliability of financial data. In an era where time is money, the ability to automate routine financial activities can provide a significant competitive edge.
Enhancing Decision-Making with Predictive Analytics
With the advancement of technology also comes greater amounts of data, and in such a data-driven world, having access to real-time data and insights is invaluable. Upgrades to modern business systems means that your business can be more equipped with predictive analytics capabilities that allow CFOs to make informed decisions based on data trends and forecasts. This shift from reactive to proactive decision-making can be transformative for business success.
Predictive analytics can identify patterns and trends that might not be apparent through traditional analysis. This foresight enables companies to anticipate market changes, manage risks more effectively, and seize new opportunities ahead of the competition.
Cultivating a Culture of Innovation
Modernizing business systems is not just about technology; it’s also about changing the culture of your finance team. By prioritizing technology change, CFOs are also encouraging a digital mindset and culture. A bold agenda for transformation can inspire a culture of innovation, where employees are recognized and rewarded for innovative ideas relating to digital finance delivery. This cultural shift is crucial for fostering an environment that encourages a willingness to change.
A forward-thinking culture also attracts top talent who are eager to work with cutting-edge technologies and innovative practices. This not only enhances the performance of the finance team but also positions the SME as a leader in the industry.
Embracing the Future
For small to mid-sized companies, the decision to modernize business systems is not just about keeping up with the competition; it’s about leading the charge. Today, more finance leaders that are taking bolder action are more likely to prioritize technology change as a finance transformation priority (44% of respondents)
respondents), as well as advanced analytics (36% of respondents).
The benefits of upgrading, ranging from increased productivity and enhanced decision-making to cultivating a culture of innovation, far outweigh the perceived risks.
As a CFO, embracing a more ambitious vision for your finance function is essential. By overcoming the inherent risk-averse nature of the role and championing modernization, you can drive your company towards a future of sustained growth and success.
Reach out to Crescent today to learn more about how our team of business accountants can help your business reach your financial goals.
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