Corporate financial transformation: what changes for the finance function?

In recent years, the finance function has been undergoing profound changes. This is due to technological innovations, financial market volatility, fluctuations in the regulatory framework, etc.

What does this financial transformation mean? And what are these changes for the finance function?

WAYDEN answers.

 

Changes in the finance function

The main change in the finance function in companies is above all linked to the rise of new technologies. Indeed, the digitalization of processes and practices, greatly accelerated by the health crisis, is now a necessary step to preserve one’s competitive advantage and optimize its performance. In the same way as the supply chain, marketing or HR function, the finance function is also increasingly taking the digital turn. Big Data, AI, machine learning, robotization… These new technologies can make it possible to Automate a number of tasks (payroll management, reporting missions, development of dashboards, etc.). Automating time-consuming and redundant tasks can free up time for finance teams to focus on high-value assignments. It is also a way to reduce the risk of human error, decrease workload and improve operational performance.

According to a study by Esker conducted by OpinionWay, 8 out of 10 CFOs (Chief Financial Officers) believe that their workload is too high, that nearly 50% of their tasks are time-consuming and repetitive and that more than a third of them can be automated.

In addition to automating tasks, the digitalization of the finance function is also an excellent way to streamline the sharing of financial data internally and to strengthen the control of financial risks.

In addition, the current socio-political and economic context (health crisis, war in Ukraine, inflation, etc.) reinforces the need for agility, responsiveness and risk management by the Finance Department. The finance function must also adapt to an increasingly rigid regulatory framework, in terms of compliance, GDPR, transparency, etc., as well as an increase in the risk of cyberattacks.

 

How to succeed in the financial transformation of your company?

In the face of current and future challenges, finance transformation is now one of the priorities for CFOs. To carry out such a change management, it will be necessary to carry out, as a first step, an audit of the needs of the finance function, flaws and areas for improvement: what are the challenges faced by the finance department at the moment? How much time is dedicated to each task? What tasks can be automated? What needs to be changed? Why? etc.

This will be followed by the creation of an action plan with clear, prioritized and time-bound objectives and a list of the human, technical and financial resources to be mobilized to achieve them.

It will also be important to set up KPIs. These key performance indicators will make it possible to regularly assess the progress of the transformation and its results over time.

 

In order to carry out this delicate transformation, the best thing to do is to be accompanied by an interim CFO. Whatever the nature of the financial transformation (digital, regulatory compliance, managerial transformation of the finance function, etc.), this high-flying expert will be able to clearly define the current dysfunctions and deploy appropriate corrective solutions to ensure the sustainability of this transformation.

To do this, WAYDEN mobilizes, among a pool of experienced interim managers, an interim CFO with more than 20 years of experience: an essential asset for the success of your company’s financial transformation.