How Automation and Digitalization will Affect CFO Roles

Automation is taking over a number of roles in the finance and accounting (F&A) industry. From bookkeeping to data analytics, and even to the offices of Chief Financial Officers (CFOs), automation and digitalization have made their mark. 

Today, the digital transformation of CFO roles is necessary to help CFOs benefit most from new F&A technologies and navigate the demands of the industry. But how exactly does this digitalization affect the role of CFOs? 

Here are a few points on how automation and digitalization will affect CFO roles and responsibilities. 

An Increased Need to Use Latest Tools and Software 

The F&A industry today heavily relies on the use of the latest tools and software. As industry leaders, CFOs set the direction and the strategy for their company’s F&A team. Integrating these tools into their processes will result in their team accomplishing more and increasing the quality of their work. On top of this, today’s F&A technologies are developed to save both time and resources, making it logical for any business to make use of them as much as they can. 

More decisions, less paperwork 

With the help of automation and artificial intelligence (AI), tedious tasks and paperwork are either minimized or completely eliminated. This means that CFOs also spend less time checking the papers submitted to them by their people and view these reports through organized and insightful visualizations. Having a better way to view reports and data from their team provides CFOs with the capability to make faster and better business decisions. 

Focus on data analytics 

Automation, artificial intelligence, and digitalization were pushed by the demand for better data analytics. The progress in these technologies makes it possible for data analysts and business leaders to make sense of their company’s data. Through numerous data analytics tools, CFOs are also able to get more sense of what is going on with their F&A. Having these technologies at their disposal, CFOs can focus on data, gain more knowledge about their company, and make smarter decisions. 

Setting the tone for the future 

CFOs are at the top of the F&A industry today. They have mastery of the different processes and they are also in the key position to determine how technology can further improve the way we do F&A. Furthermore, as leaders of the field, it is their responsibility to foster an environment where they can help professionals who are at the start of their career grow and be the next leaders of the industry. 

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Financial Forecasting 

CFO roles are transforming rapidly due to the changes in technology. As automation, artificial intelligence and digitalization continue to affect the F&A industry, we can only expect the digital transformation of CFO roles. 

 
Key Skills CFOs Need to Adapt to Automation and Digitalization 

To adapt to the automation and digitalization of CFO roles effectively, it is essential to possess certain key skills. Here are a few skills that CFOs should focus on: 

1. Technological proficiency

A CFO must be comfortable with technology and possess the ability to quickly adapt to new tools and software. This includes being familiar with data analytics platforms, financial management systems, and other relevant technologies. With this skillset, CFOs can fully leverage automation and digitalization to drive organizational success. 

2. Strategic Thinking and Decision-Making

CFOs play a critical role in setting the strategic direction for their organizations. By thinking strategically and anticipating future trends and challenges, CFOs can proactively leverage automation and digitalization to drive business growth. This includes identifying areas where technology can be applied to streamline processes and add value. 

3. Communication and Collaboration

With automation facilitating smoother workflows, CFOs should prioritize effective communication and collaboration with their teams and other stakeholders. Clear and concise communication of financial insights and recommendations allows for efficient decision-making across the organization. 

THE BOTTOM LINE 

The digital transformation of CFO roles requires the adaption of the latest tools and software, a shift towards decision-making over paperwork, and a focus on leveraging data analytics capabilities. CFOs must possess the necessary skills, including technological proficiency, strategic thinking, and effective communication, to thrive in an automated and digitalized F&A landscape. 

Are you in need of assistance in the digital transformation of your CFO roles? Look no further than D&V Philippines. Premier CFO Finance and Accounting Solutions. Our unique and comprehensive F&A support line ensures you receive the right assistance, even in the most demanding tasks. Schedule a free with us today to learn more about our services. 

This post was first published 18 March 2019 and edited 14 December 2023 by Angelica Garcia