As technologies evolve and external trends that affect the finance function emerge, companies are faced with new challenges and, consequently, with the need to redefine their functional strategy. A successful finance transformation is one of the keys to maximizing business profitability. Therefore, CFO’s strategies should ensure that steps are taken for finance digital transformation.
Keep on reading to learn about how to successfully transform the corporate finance function.
How to approach finance transformation
The roadmap for successful finance transformation should be realistic, with achievable timelines, practical processes and accurate deliverables.
Since finance digital transformation is a task that involves strategies, business practices, methodologies, etc., every company will face unique challenges. Therefore, it is advisable to break the transformation into manageable stages, depending on the current state of your organization’s systems. Moreover, companies should ensure that people, processes and technology blend together to support the company in achieving the ultimate goal, which is to be ready to adapt quickly to market shifts.
Best practices for a successful finance transformation
The following are some of the musts for a successful finance transformation:
- Analyze the state of your finance function to see what might be lacking.
- Have a clear vision of the order to follow and consider the tools, people, processes and data that are to be involved, and what needs to be first updated.
- Define clear goals. Evaluate, prioritize and define activities in a finance transformation roadmap and communicate it to stakeholders and employees so that everyone is on the same page.
- Implement strategies that create value for business partners and ensure that you manage their expectations.
- Use scalable technology so that all the processes that feed into finance are updated and, thus, keep finance transformation projects on schedule, on budget and sustainable.
- Measure progress when changing processes or adding tools. This can be done by setting benchmarks and testing your company’s effectiveness against them.
- Track performance over time to continue driving change and train your teams on tools and agile practices, so that they understand the approach at all times.
Digital finance transformation: the future of the finance function
Digital transformation is the pathway to a more autonomous model and a necessary step for survival in the constantly evolving market.
So, how can finance digital transformation tools help to overcome the challenges faced by finance departments?
- Automation and simplification of finance processes such as invoicing, data collection and organization, financial controlling and reporting (including financial close and account reconciliation), budgeting, planning and analysis, payroll management, tax calculation, etc.
- Real-time data accessibility at any time and from anywhere, in a centralized and secure location, which enables better planning and forecasting.
- Reduction of workloads, which means that teams can focus on higher-value tasks.
Hence, it is imperative for organizations to accelerate the digitalization of their finance function.
In this regard, Talentia CPM provides you with a comprehensive platform for corporate performance management to redefine your financial function and successfully operate in the digital era.