Digitalisation of the finance function : what can we expect in the future?

Digitization of the finance function, while digital transformation is at the heart of corporate strategy, CFOs are redoubling their efforts to ensure the digitalization of their function. To increase the agility and efficiency of the finance department, digital technology offers enormous potential, with the possibility of using ERP software, for example. So what can we expect in the future?

How is digitalization shaking up the organization of the finance function?

For the finance function, digitalization is a priority investment. It reduces costs, boosts productivity and improves processing times. Digital transformation has already been taking place intensively over the last ten years, focusing on new issues and new needs, with the aim of boosting business performance.

CFOs who work with new technologies on a daily basis emphasized the importance of using quality data for digitalization tools to truly add value to the business. In other words, for digital transformation to be effective and relevant, successful data migration requires a new organization of skills and operational management of teams.

Artificial intelligence at the heart of the evolution of the finance function

The integration of artificial intelligence means taking the next step in the digitalization of the finance function. It can support performance management, accounts receivable analysis or risk prevention… It is already used to process considerable volumes of invoices or to associate supporting documents with accounts receivable.

Some newdigital software is capable of performing tasks performed by humans. They automate data entry, reconcile new invoices with old ones, flag chargebacks or classify a document in the right category.

Thus, the evolution of artificial intelligence is about to revolutionize certain financial professions by carrying out certain actions instead of humans. It will therefore allow employees to focus on tasks with greater added value and help them become more efficient in their work.

Integration of blockchain in accounting records

Blockchain technology is still in its infancy in the finance sector. And yet, it can be used to simplify all financial transactions. One of its main advantages is to reduce transaction costs and time in a totally secure environment.

This is because blockchain can make it easier to store all transactions in a single ledger, unlike traditional accounting software that relies on many databases. Many banking institutions believe that blockchain technology could significantly improve cross-border payments in the future.

However, as this technology is new, the issues of taxation, regulation and legal aspects are still undetermined. From one country to another, the laws passed may differ, which can lead to regulatory complexities that can have an impact on the accounting management of a company working on an international scale.

Is the finance department becoming a technology prescriber?

Over time, the finance department has positioned itself as a partner for all company players, from operations to management, to help better analyze value creation and support growth.

Add to this the growing impact of data and its ever-increasing volume, and you’ll better understand why finance departments are pushing the implementation of financial solutions that are better adapted to their challenges and more efficient thanks to technology.

A study by Oracle and Accenture shows that CFOs have become prescribers of new technologies.

Two salient points emerge from this study:

• Cloud technologies are very useful for budgeting, planning and forecasting
• The need for sophisticated analytics, modern applications and collaborative tools using social, mobile and cloud technologies to fulfill their strategic mission

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