CFO 5.0: Current trends and challenges for financial managers
Posted: Thu Dec 26, 2024 3:39 am
The CFO of the Future and the future of the CFO
Historically, the management team occupied a separate – and sometimes isolated – place in the organizational chart of most companies, and its function was largely limited to the supervision, control and financial reporting of companies.
Today, the CFO is a key element in decision-making. The finance function is now responsible not only for presenting data on business activity, but also for justifying and understanding this data and even for anticipating and forecasting scenarios.
A technology-supported change
This paradigm shift is easy to understand if we consider that today all management processes are supported by information systems, where large amounts of data circulate, which can be transformed into valuable insights for the future strategic alignment of companies.
But these insights are only available if the CFO uses technology that india whatsapp number database him to convert the multiple data circulating in the company into information to support decision-making.
And this is the biggest challenge facing CFOs today – knowing how to obtain the right data to make the best decisions. But there are others:
Main challenges for the CFO
Technological disruption
The popularization of robotic process automation (RPA), Machine Learning, Data Mining and other Artificial Intelligence technologies have opened up a range of possibilities for analyzing and exploring management information that did not exist until a few years ago. Managers used to base their decisions on the past. Now, it is possible to make decisions based on reliable predictive analysis, and the CFO needs to know how to do this.
The speed of decision
Never before has speed of decision-making been so crucial. Everything happens at a dizzying speed and whoever gets there first has the best chance of getting there. In this fast-paced race, it is vital to obtain accurate, structured and consolidated information in a timely manner. This is therefore a major challenge for the CFO, especially at a time when organizations produce large volumes of data, but often fail to take advantage of this information to optimize decision-making.
Globalization
Experience and knowledge of global markets is considered the most important skill in the CFOs’ skill set, according to KPMG’s “The View from the Top” study. Any growth strategy must take into account a global perspective. Therefore, the CFO, now and in the future, must have a broad knowledge of global business and finance.
Remote and Automated : this is what financial management will look like in the future
In the coming years, we will see the consolidation of work from home, or at least hybrid models, with some days in the office and others at home or elsewhere. This will require a new approach to team management – one that is more flexible, empathetic and focused on communication – often virtual.
For this to be possible, companies will need to equip themselves with the necessary tools to guarantee remote access to information. Now, it is necessary
This is where the fundamental role of cloud tools comes in: whether to enable remote work or to speed up real-time access to all business data.
Some processes that can be automated:
Billing
Invoicing process, using order integration via webAPI and subsequent automatic registration in accounting.
Purchases and expenses
Purchasing and expense entry processes.
Tax Reporting
Treatment of tax obligations.
How can the cloud help?
Greater accessibility
Being able to access business data from anywhere is an advantage that will continue in the coming years, given the growing demand for remote and hybrid work models. Cloud solutions allow employees to access data from anywhere, using pre-configured settings.
Increased security
When it comes to business information, you can never be too careful. And we know that a company on its own has serious difficulties in guaranteeing data security, not only because it requires qualified resources in the area, but also because it requires a significant financial investment. Having a team of specialists to guarantee data security and continuous system availability is not within the reach of all organizations. By using cloud management or ERP software, you can be sure that a specialized team is available 24/7 to safeguard the security of your data. But be careful with the provider you choose.
Lower costs
The traditional model of purchasing a software license has a high TCO (Total Cost of Ownership) when compared to the subscription model inherent to cloud management solutions. When accessing cloud solutions, you do not need to invest in servers and other equipment, nor do you need to take care of their maintenance and security. The cloud service has everything included, so that the CFO can focus solely on the business.
Historically, the management team occupied a separate – and sometimes isolated – place in the organizational chart of most companies, and its function was largely limited to the supervision, control and financial reporting of companies.
Today, the CFO is a key element in decision-making. The finance function is now responsible not only for presenting data on business activity, but also for justifying and understanding this data and even for anticipating and forecasting scenarios.
A technology-supported change
This paradigm shift is easy to understand if we consider that today all management processes are supported by information systems, where large amounts of data circulate, which can be transformed into valuable insights for the future strategic alignment of companies.
But these insights are only available if the CFO uses technology that india whatsapp number database him to convert the multiple data circulating in the company into information to support decision-making.
And this is the biggest challenge facing CFOs today – knowing how to obtain the right data to make the best decisions. But there are others:
Main challenges for the CFO
Technological disruption
The popularization of robotic process automation (RPA), Machine Learning, Data Mining and other Artificial Intelligence technologies have opened up a range of possibilities for analyzing and exploring management information that did not exist until a few years ago. Managers used to base their decisions on the past. Now, it is possible to make decisions based on reliable predictive analysis, and the CFO needs to know how to do this.
The speed of decision
Never before has speed of decision-making been so crucial. Everything happens at a dizzying speed and whoever gets there first has the best chance of getting there. In this fast-paced race, it is vital to obtain accurate, structured and consolidated information in a timely manner. This is therefore a major challenge for the CFO, especially at a time when organizations produce large volumes of data, but often fail to take advantage of this information to optimize decision-making.
Globalization
Experience and knowledge of global markets is considered the most important skill in the CFOs’ skill set, according to KPMG’s “The View from the Top” study. Any growth strategy must take into account a global perspective. Therefore, the CFO, now and in the future, must have a broad knowledge of global business and finance.
Remote and Automated : this is what financial management will look like in the future
In the coming years, we will see the consolidation of work from home, or at least hybrid models, with some days in the office and others at home or elsewhere. This will require a new approach to team management – one that is more flexible, empathetic and focused on communication – often virtual.
For this to be possible, companies will need to equip themselves with the necessary tools to guarantee remote access to information. Now, it is necessary
This is where the fundamental role of cloud tools comes in: whether to enable remote work or to speed up real-time access to all business data.
Some processes that can be automated:
Billing
Invoicing process, using order integration via webAPI and subsequent automatic registration in accounting.
Purchases and expenses
Purchasing and expense entry processes.
Tax Reporting
Treatment of tax obligations.
How can the cloud help?
Greater accessibility
Being able to access business data from anywhere is an advantage that will continue in the coming years, given the growing demand for remote and hybrid work models. Cloud solutions allow employees to access data from anywhere, using pre-configured settings.
Increased security
When it comes to business information, you can never be too careful. And we know that a company on its own has serious difficulties in guaranteeing data security, not only because it requires qualified resources in the area, but also because it requires a significant financial investment. Having a team of specialists to guarantee data security and continuous system availability is not within the reach of all organizations. By using cloud management or ERP software, you can be sure that a specialized team is available 24/7 to safeguard the security of your data. But be careful with the provider you choose.
Lower costs
The traditional model of purchasing a software license has a high TCO (Total Cost of Ownership) when compared to the subscription model inherent to cloud management solutions. When accessing cloud solutions, you do not need to invest in servers and other equipment, nor do you need to take care of their maintenance and security. The cloud service has everything included, so that the CFO can focus solely on the business.