How digital CFOs are redefining innovation and strategy
Written by CPiO
The role of a Chief Financial Officer (CFO) has changed dramatically.
No longer just a numbers-focused leader, the modern CFO is a key driver of business strategy and growth. This shift is powered by a strategic embrace of new technology.
A new kind of CFO is emerging—one who thinks ahead and uses technology to lead their company’s strategic initiatives.
In fact, a recent Sage report found that a strong majority of CFOs are embracing new technology, with 87 per cent using AI, 88 per cent adopting cloud technology, and 86 per cent utilising automation.
These numbers show just how quickly technology is reshaping the world of finance.
This strategic use of technology is giving CFOs a competitive edge.
It helps them work better with other departments, boosts employee satisfaction, and provides the real-time insights needed for quick, informed decisions.
Tech-powered leadership
AI and automation are doing more than just making finance more efficient; they are fundamentally changing how it works.
These technologies boost accuracy and influence strategic decision-making, allowing CFOs to make faster, data-driven choices and contribute more effectively to corporate strategy.
By automating 74 per cent of finance processes, these tools free CFOs from routine tasks, so they can focus on strategic growth.
They provide a clear, predictive view of finances, empowering CFOs to anticipate market shifts and make proactive, data-driven moves.
A faster, smarter financial close
One of the biggest areas of improvement is the financial close process.
AI automates routine tasks like accounts payable and accounts receivable, reducing errors, increasing efficiency, and ensuring compliance.
This transforms the financial close into a continuous, automated process.
According to a survey, 81 per cent of finance professionals felt overwhelmed by traditional accounting duties.
By moving to a continuous close model, finance teams can shift their focus from manual work to strategic initiatives.
Continuous automation offers several key benefits.
For example, AI-driven automated data capture for invoices:
- Saves time and reduces errors by minimising manual data entry.
- Enhances data accuracy through precise detail capture and outlier detection.
- Provides continuous insights from real-time data, which improves cash flow.
Ultimately, this allows finance teams to focus on valuable analysis, significantly accelerating the monthly close.
Powering the growth-driven CFO
Cloud-based financial platforms that offer streamlined AP automation with AI are essential for today's CFOs.
AI helps finance leaders minimise errors, reduce processing times, cut costs, and free up teams for strategic tasks.
Proactive outlier detection uses machine learning to spot unusual patterns in financial data, enabling CFOs to quickly address potential errors or fraud and protect financial integrity.
Beyond these operational efficiencies, modern financial platforms provide dynamic multi-dimensional reporting.
This feature allows CFOs to analyse financial data across different dimensions—such as projects or departments—without using complex spreadsheets.
Immediate access to this data provides real-time performance insights for agile, timely, and strategic decisions.
For businesses with multiple entities, seamless multi-entity consolidation simplifies intercompany transactions and currency conversions, giving a unified view of overall financial health.
Five key advantages of technology in finance
Research points to five compelling benefits of integrating technology into finance:
- Competitive advantage: 78 per cent of finance leaders say technology is vital for a competitive edge. AI and analytics provide immediate, accurate information for swift strategic decisions.
- Operational efficiency: 74 per cent of finance leaders who automate over half their processes report improved efficiency and a greater focus on higher-value tasks.
- Robust risk management: 86 per cent of finance leaders prioritise cybersecurity and cloud technology. Advanced analytics and AI tools offer sophisticated risk assessment.
- Innovation and growth: 86 per cent of CFOs believe AI and automation will significantly change their roles. Technology supports new business models and streams.
- Strengthened collaboration: A 30 per cent increase in cross-departmental collaboration highlights how technology fosters teamwork by providing real-time data and shared insights.
The path forward for the CFO
The future of finance is here, and the modern CFO is leading the way.
By embracing advanced technologies, today's CFO's not only drive organisational growth and collaboration, but also transform their own roles from traditional oversight to catalysts for innovation.
Would you like to learn more about how a technology-driven CFO can lead a company to greater success?
For a deeper understanding of these transformative strategies and actionable insights on leveraging technology like Sage Intacct, download the eBook, "The CFO’s Guide to Driving Growth".