- What is the role of modern CFO in financial management?
- What are the CFO primary responsibilities?
- What are the role of responsibilities of the modern CFO?
Before getting started with our main topic regarding the technological advances for a CFO, let us explain the role of a CFO. As you all know, CFO stands for Chief Financial Officer. Hence, he is the person responsible for maintaining the company’s finances. This includes financial planning, keeping a record of the finance, etc. You should also know the role and responsibilities of the modern CFO.
So, in this technology-driven age, some technologies exist for them to help them out with their work. In this article, we will discuss the top technologies for modern CFO.
So let’s start.
Four technologies for modern CFO
With digitalization, the role of the CFO is expanding at a brisk rate. According to a report by Deloitte, in 2018, almost 66% of senior CFOs progressed with an advanced digitization policy.
However, this figure was just above 50% (to be precise, 51%) in 2017. But, which technology has the most potential, and why?
So, in 2020, a CFO needs to spend some time on the below listed four technologies.
1. Conceal the scalability of Cloud
Today, every finance department must know the pros of cloud-based solutions. It could be a public, private or hybrid cloud.
Nevertheless, the flexibility attained by breaking the bonds of the traditional computing regulations is highly beneficial to a CFO. A CFO can move the planning and budgeting function to a cloud-based function.
In this way, he can enjoy cutting-edge over others.
Also, cloud-based financial software better combines with other industry systems like ERP and CRM.
This, in turn, brings the finance procedure within the reach of everyday business operations.
2. Using Data Visualization and Data Analytics
Big companies generate tons of data, some of which are useful to the finance officer while interpreting the results.
Hence, a CFO can benefit from having a deeper insight into the large data. So, it can be said that compiling valuable information from the existing data fits in the CFO’s maturing role.
For example, dynamic dashboards can visualize the performance of a growing enterprise.
3. Adopting the robotic process automation
The industry’s finance procedure is highly transactional and includes repetitive business cycles. Hence, today, automating these cycles can allow the officer to commit himself to other high-level activities.
In this way, the risk of errors reduces to a large extent and increases the quality of the work. For example, RPA is the best solution for this. It stands for Robotic Process Automation.
It is different from AI and machine learning. RPA simply steers the existing processes which otherwise eat up the resources and energy of the staff.
4. Deploying blockchain for data commerce
A well-organized and informed CFO must move on from cryptocurrency for data transactions. This is the age of blockchain.
It has proven applications in the finance departments. Therefore, it can help CFOs develop a secure and transparent transaction environment.
With tokenization, the overall cost of the financial process lowers down. Alongside this, it enhances the efficiency of both internal and external financial transactions.
The role of responsibilities of the modern CFO!
So, these are the four technologies upon which the future of finance officers depend. Moving on from the traditional methods to these technologies will benefit both the enterprise and the officer