“When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar”
George Westerman MIT
You may have heard the term finance transformation, but what exactly is it? and why do all businesses, regardless of industry or size need to keep finance transformation on their agenda?
Transformation is taking something that is not working efficiently or effectively and transforming it into something else. When we talk about finance transformation, we mean your financial day-to-day transactions – such as supplier & sales invoicing, and cash receipts, taking these processes and improving through digitisation and standardisation. Here is a small sample of what can be achieved with a finance transformation project:
- Improving sustainability – Implementing digital tools and practices can make your sustainability policy progress by reducing environmental impacts and allocating resources more efficiently.
- Accounts payable/ accounts receivable processes are standardised – avoiding error and increasing efficiency.
- Month-end reporting is automated – staff no longer spend a week creating month ends reports, freeing up resources.
- Functions are automated – Clients’ statements are emailed directly on a set date, ensuring cost savings across the department.
- Digitisation – giving the possibility to embrace remote and hybrid working, leading to greater work-life balance and cost savings.
Successful finance transformation comes from a blend of technology, people, and process change. It is a waste of time and resources to invest in state-of-the-art technology if team members cannot use that technology.
Although finance transformation can be daunting, it allows your business to be future-ready and look forward.
Here are the first steps for all finance transformation projects.
- CFOs who invest in outsourced finance transformation experts increased the likelihood of the financial transformation goals being realised and delivered within agreed timeframes.
- Ask yourself the question, “What do we “really” want to achieve? Once you have a clear visualisation of what you want – the how, when and who will quickly fall into place. Keep in mind any limitations such as regulatory constraints, budgets etc.
- Define a plan.
Once you have the scope of the project cemented in stone, allocate tasks to the project team. Remember to be specific and ensure that roles follow the RACI model – Responsible, accountable, consulted and informed and ensure that actions have a set time frame.
It is true, finance transformation is hard, but as the adage goes “nothing worthwhile is ever easy!”
