If companies were in a rush to implement digital transformation pre-Covid, they are now in a race. Based on their recent survey McKinsey reports “Covid has pushed companies over the technology tipping point,” with executives responding that their companies “have accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years.” That is what I call tech transformation in hyper-drive, the equivalent of light speed.

CFOs must be ready. Technology is a great tool to provide better leadership, strategy, performance, analytics, controls, reporting and operations management. But the tech revolution that is transforming business is not just about technology. It is about the humans behind the technology, and their ability to leverage these new and exciting tools in ways that add value to the business. This means a major upskilling initiative is underway in finance and accounting to understand the technologies and learn how they fit into processes like the financial close or forecasting. A recent IMA survey found most finance professionals (78%) were already planning on upskilling prior to the pandemic, but are now very concerned about maintaining and/or enhancing their skills for the post-pandemic world.

So, what are the technologies on which they should be focusing their attention? I think it is useful to share some thoughts on what has now emerged on the “must have” list of CFOs and finance leaders.

• Automation: If you have not already implemented some automated processes for routine tasks like accounts payable, you will be hard pressed to explain why you did not a year from now. Fueled by ever more sophisticated AI and machine learning models, automation use cases have grown. This is a major area where you can save your company money and you can save your people from languishing all day doing repetitive tasks.
• Advanced Data Analytics: Predictive modeling capabilities, enabled by advanced data capture and analytics, can set you apart from your competition. Within your organization, you have vast amounts of data that can inform decision-making and shed insights on how you do business today, and in the future.
• Cloud-based Computing: Cloud-based computing made it possible for entire organizations to shift their workforces to 100% remote work in a matter of hours during the pandemic. This technology also made it possible to share information and collaborate in secure networked environments while teams were dispersed. As more and more companies look to hybrid work models for the future, CFOs must acquaint themselves with the risks and benefits of cloud-based computing.
• Blockchain: Blockchain’s usefulness will soon be fully realized, as companies increase use of smart contracts and real-time asset transfer. Combining blockchain with other technologies like AI and automation will also enable end-to-end processes to be executed with no human intervention.

Though these technologies require new skills, for many in finance and accounting, the efficiencies they can bring are a welcome change. The “before hours” and “after hours” meetings, where different units reconcile financials to provide accurate numbers for management to report, can become a thing of the past, with the aid of blockchain technology. Advanced data technology can capture ever-increasing amounts and types of data, providing clearer pictures to CFOs about the state of the business. Smart contracts have eliminated the need for in-person handshakes as a sign of trust because every item in the contract can be validated digitally.

But these technologies will not implement themselves; finance must make the case for their implementation. Technology is a long-term investment, which may be competing with demands from other departments or from shareholders who seek higher short-term profits and dividends. As a strategist and business partner, the finance professional’s most important role post-Covid will be technology enabler. Finance and accounting professionals must become the proverbial cheerleaders for these break-through technologies.

Covid found many finance and accounting professionals stepping up to help their organizations through crisis. Yet crisis mode will soon give way to a new normal, where growing in a highly competitive market will be the mandate. How will finance and accounting professionals respond? I believe they will do what they have historically done: learn what is needed, assimilate to the new environment and gain more credibility and relevance within their organizations. Technology is speeding up our world and the way we do business, but it is still just a tool, most useful when it is in the right hands.

Source: Forbes