The demand for agile finance transformation has evolved as finance departments throughout the world undergo transformations from data management to value development and decision support. Agility provides financial operations with a route toward persistent transformation, continuous improvement, customized solutions, inclusive culture, and collaboration; it also speeds up the transformation of finance teams and increases the value delivery to the company. Also, the Agile Finance Transformation Certification provide a road map for easing the transfer of finance professionals to a digital model.
In this article, we will talk about how to succeed with your agile finance transformation.
Table of Contents
What Is Financial Transformation?
Many consumers don’t understand what is meant by the term “financial transformation,” which is used by vendors to describe their products. Financial transformation projects are a common term used by suppliers when referring to technological initiatives. A transformation in the financial sector means more than just establishing a single budgeting and planning system.
Why Agile In Finance?
As the world of finance and accounting undergoes a transformation from a primary emphasis on accounting and reporting to advanced analytics and strategic decision support, business leaders in the field are working to improve the digital and analytic, fundamentals of their staff. The entire value of these augmented abilities, however, cannot be realized without effective operational delivery and agile execution.
Finance teams need to eliminate tedious, time-consuming, and segregated work and adopt new, streamlined methods of collectively providing value to provide the timely insights the business requires. As a result, there is a growing demand for highly skilled in-house project managers in the finance and accounting departments as the number of complicated, digital projects involved sharply rises.
How Does Agile Finance Transformation Help Succeed?
● By providing clients with useful software in the need.
● Taking advantage of dynamism for the benefit of the client.
● Agile methods are more conducive to long-term growth. It is expected that the pace set by the developers and users can be sustained indefinitely.
● Focusing on technology in accountant-related well-designed systems helps increase flexibility.
● Effectively collaborating between business leaders and developers.
● Keeping things simple, or minimizing effort.
● Communicating with and within a development team through in-person meetings.
● Create initiatives centred on enthusiastic people.
● Giving the right environment and resources.
Key Factors For Agile Finance Transformation
Robotic process automation (RPA) is among the new technologies, along with artificial intelligence (AI) and machine learning (ML), that are improving the automation of financial processes and activities to save time and money. RPA and AI can be integrated with other technologies and tools such as sensors and drones, to automate even more corporate processes or human experiences.
| See More: Robotic Process Automation in Accounting
The use of some new technologies like Trust Portal in finance can allow for the digitization of processes and documents. This facilitates finance’s efforts to centralize, automate, and secure these procedures. Standardizing and automating digital procedures will boost accuracy, cut costs, and free up skilled workers to take on more challenging work.
3. Cloud Computing (CC) And Software as a Service
The CC and Saas are revolutionizing how businesses operate. SuccessFactors and Salesforce are just a few of the many customer-facing and HR-enabled platforms that have recently come to dominate the cloud. The cloud and SaaS allow the finance department to only pay for IT architectures when they are actually used, which both lowers costs and increases flexibility.
| See More: What is Cloud Computing in Accounting?
Blockchain is a distributed infrastructure technology that allows for the decentralized, yet trustworthy, exchange of data. Participants in the network can manage the ledger securely and independently with the use of cryptography. Additionally, it may lead to enhancements in a variety of financial domains. A company’s financial status may improve if it implements a clearing and settlement function in its financial network that makes use of blockchain technology.
How To Achieve A More Flexible Agile Finance Transformation
1. Encourage participations
You should make sure you and your staff are on the same page about why you need to shift to a more agile finance function before you do so. If you involve your team early on, you can increase their sense of agency and build strong alliances that will benefit the company as a whole and help everyone achieve their objectives.
2. Reduce manual tasks
Investing in cutting-edge technologies like artificial intelligence or robotic process automation may streamline and automate the whole finance department, from accounts payable to bank reconciliation and employee expenditure management and reporting.
3. ERP system
Moving toward an integrated or enterprise resource planning (ERP) solution is the only way to attain an agile finance function if your primary software is in the cloud but your other applications are not.
4. Acquire a More Diverse Set of Competencies
To make the shift to an agile finance function, CFOs and CPAs will need to acquire a broader, more technology-oriented skill set that includes the ability to effectively utilize digital tools. Since AI and RPA are already pervasive in financial planning and other financial services businesses, new users will also need to familiarize themselves with these technologies
👉Learn more about dual specialization in investment & management accounting with CIMA®