Digitization of the finance function: what should 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, increases productivity and improves processing times. Digital transformation has already been taking place intensively for the last ten years, focusing on new issues and new needs with the objective of increasing company 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 a new step forward in the digitalization of the finance function. It can support performance management, accounts receivable analysis or risk prevention. It is already used to process large 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, indicate charges to be performed 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 costs and transaction 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 can 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 be different, which can cause regulatory complexities that can impact the accounting management of a company working internationally

Is the finance department becoming a technology prescriber?

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

Add to that the growing impact of data and its increasing volume, and you can see why finance departments are pushing to implement financial solutions that are more relevant to their challenges and more efficient through technology.

A study conducted by Oracle and Accenture,
shows that the CFO has become a prescriber 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

Also read in our " ERP Finance project " file:

• What are the key challenges facing finance managers today?
• What are the key regulatory issues for CFOs in 2019?
• Digital transformation of the finance function : where do you stand?
• Digitization of the finance function: what should we expect in the future?
• What changes does dematerialisation bring to the finance function?
• Finance management: what technological tools are available to CFOs?
• ERP software definition: what is an ERP?
• What is the use of an ERP solution for the finance function?
• ERP finance: what do you need to know as a finance manager?
• CFO: what are the advantages of an ERP for the finance function?
• Finance software: which ERP to choose for your company?
• Postmodern ERP: the right choice for your company?
• Should you consider a Postmodern ERP solution?
• The challenges of a post modern ERP
• Post-modern ERP: the checklist
• Help in choosing ERP finance: why use a firm?