Emerging Technology That Every CFO Should Know About
Chief Financial Officers (CFOs) play many vital roles within a company and have an extensive list of responsibilities that seems to grow with every coming year. Their expertise revolves around financial operations and strategies, making them the go-to individual for anything finance related. Though they often help manage a financial department, it is only a small part of their ever-growing job description.
CFOs work closely with the CEO to ensure all departments are operating effectively and efficiently, under the appropriate amount of funding. It is within the CFOs duties to ensure that all departments are not overspending and to propose ways to fix this issue if it does arise. End-of-month reports are put together to keep track of company spending, which are often analyzed by the CEO and department heads alongside the CFO.
Despite their ever-growing list of responsibilities, CFOs hold a very competitive position that gets harder to get into as the years' progress. What was once regarded as an optional position within a company has turned into a must-have for businesses of all sizes. A CFO now holds the third highest C-suite ranking position, sitting directly below the COO and CEO of a company.
CFOs hold an important position within a company as they have decision-making powers that impact the success of the business. However, managing their influence on the business as well as keeping track of their growing responsibilities has become increasingly stressful for these individuals. To reduce stress and focus their attention on more important matters, CFOs should begin considering technology to aid in their everyday responsibilities.
Here is some emerging technology that every CFO should know about:
Cloud marks a major shift in the development and delivery of technological solutions, and It's quickly becoming the new standard. Cloud applications are internet-based software in which at least some of the processing and storing occurs on the internet, sometimes known as "the cloud." The front end of the program may operate as an app or in a web browser, but critical features, such as data storage, are available online. There are the major three primary kinds of applications:
Infrastructure as a Service (IaaS)
Platform as a Service (PaaS)
Software as a Service (SaaS)
CFOs are enthusiastic about cloud applications for a variety of reasons. They see the genuine possibility of decreased costs, but it's frequently strategic value that tip the scales. Here are a few other benefits of implementing cloud applications:
Faster time to market: Cloud platforms enable businesses to rapidly develop and deploy new goods and services, as well as monitor their effectiveness in real-time.
Scalability: Businesses can efficiently handle demand spikes and lulls by being able to supply more resources as needed.
Agility and Creativity: Major companies are incorporating important new capabilities with their cloud products, allowing them to be more agile and innovative. Companies may now use these capabilities for data solutions, advanced analytics, machine learning, and other purposes to foster a culture of continuous development.
The benefits of using cloud applications are attainable, but that doesn't imply it's simple. The greater your objectives, the more difficult execution will be. However, like with so many other things, the value you receive is determined by the rigor with which you complete the task. CFOs who act immediately can gain a competitive advantage in terms of innovation, agility, and cost.
As every aspect of our everyday lives becomes increasingly dependent on technology so does the transition toward automation. Automation is a broad term used to define a wide range of technologies that are meant to reduce human involvement in the desired process. These processes vary from sector to sector as the power of automation can be used just about anywhere a human is placed to conduct a task. Automation is meant to release humans from the burden of tedious, repetitive tasks rather than fully replace them. Though in some scenarios automation may completely take over a task, there is no doubt that the human aspect will always be required. Automation is useful and should be used to human advantage. This is especially true in the world of finance and CFOs.
The number one goal of automation is to increase overall efficiency within a company. Automating processes can streamline work and decrease the amount of time that is spent doing a specific task. And since everyone knows that time is money, reducing the time that needs to be spent on a task will end up saving money in the long run. While automation does the tedious tasks, CFOs can engage with department heads and the CEO on more pressing matters.
Automation also has the potential to greatly reduce, if not completely irradicate, human error. Human error is typically accidental and so minute that oftentimes it goes unnoticed. However, these errors can eventually throw off numbers, causing more work for the CFO and their team in the long run.
Lastly, data breaches can be detrimental to the reputation and trustworthiness of the business. This loss in trust can result in losing loyal customers, leading to massive losses in revenue. Using automation throughout your business and financial sector can add a layer of protection against breaches, potentially saving billions of dollars and the trust of numerous customers.
Going hand in hand with automation is the latest in artificial intelligence (AI). Artificial intelligence is a broad term that encompasses a wide branch of computer science concerned with building smart machines capable of doing human-like activities. As a CFO, using AI can free up personal time and team members' time by allowing AI to take over certain labor-intensive tasks. In doing so, AI can also reduce overall errors and stay on track for longer periods compared to its human counterpart. By removing the human aspect and allowing AI to take over certain tasks, more work can be completed faster and more efficiently.
Beyond taking over manual tasks, AI also has the potential to help CFOs by using data to predict future outcomes which can be used to improve business processes. AI analytical tools can also significantly increase the supplier selection process, improve cash flow management, and allow the CFO to make informed decisions based on real-time data.
These advancements in technology can be extremely useful for CFOs and/or finance teams in managing their time and operating more efficiently. In fact, Fyorin payments and financial operations are already helping CFOs of various businesses in operating their financial operations teams in an efficient and automated way. Saving them hours that could be used to perform strategic financial activities.
Fyorin platform allows CFOs and finance teams to speed up reconciliation using sub-accounts. These sub-accounts have a dedicated IBAN assigned to them; hence receivables could be segregated according to the accounting ledger. Fyorin is also able to automate the payables by connecting directly with the business preferred accounting solution. When payments need to be paid, these could be marked in the accounting solution, and they will be executed immediately. Hence CFOs or finance teams don’t need to login into their banking portal to prepare and send the payment. These are some of the areas where Fyorin is currently helping CFOs to be more efficient. However, there are other areas where Fyorin can help CFOs to automate the movement of money, especially when operating internationally. Should you want to find out more, please reach out to one of our experts at firstname.lastname@example.org