Why today’s finance leaders can’t rely on yesterday’s systems
32% businesses said their finance function lacks the technology needed to be effective, and only 34% of finance professionals feel they’re equipped to be productive at all times, according to a survey conducted by OneAdvanced [1]. And those numbers likely underrepresent the true scope of the problem since many finance teams facing these challenges weren’t captured in the survey.
This indicates that a substantial portion of finance teams are not fulfilling their potential. Not because of a lack of skills, but because of outdated systems that are holding them back.
This challenge is all too familiar amongst finance leaders striving to modernize, especially as their roles continue to be redefined. In the past, finance leaders were expected to crunch numbers in spreadsheets, primarily looking at historical data as a road map. Today, the expectations have changed. Modern finance leaders are now responsible not only for understanding the past but also for forecasting the future to identify trends, anticipate roadblocks and drive strategy.
As expectations of finance leaders change, it’s important to ask yourself if your financial management software is helping you meet the level of leadership you’re expected to deliver. In today’s evolving finance landscape, utilizing cutting-edge technology can make or break your modernization as a finance leader, making financial management software modernization crucial. Read on to learn why yesterday’s systems can’t support the new demands of modern finance leaders.
How data silos and poor integration block finance visibility
Systems that lack integration capabilities negatively impact finance leaders by requiring low-impact work that sucks up time that could be spent on strategic tasks. According to research conducted by insightsoftware, 58% of finance leaders spend at least five hours per week transferring data between systems, and 49% say that financial planning and forecasting are the areas most affected by poor data quality [2]. That time spent trying to move data around where it needs to be and making sense of low-quality data could be spent on strategic initiatives.
If your financial management software doesn’t allow for streamlined integration with other systems like your CRM, ERP and operational systems, it will exacerbate data siloes and reduce your ability to make timely, data-driven decisions. For today’s modern finance leaders, this is harmful. Without a single source of truth, you can’t fully trust that your numbers are accurate or interpret them quickly enough.
How manual finance processes create bottlenecks
Without automation, finance teams waste valuable time on data entry and error checking. According to FloQast, manual month-end closes can consume up to 40% of the finance team’s time each month [3]. That’s time that could be better spent on higher-value work, such as forecasting and risk management.
For finance leaders looking to modernize, these manual processes become significant bottlenecks. From time-consuming data entry to the risk of untrustworthy data due to inaccuracies, manual work slows decision-making and keeps teams stuck in the weeds. The costs aren’t just operational. According to Gartner, the estimated cost of poor data quality is $12.9 million per year [4].
In a role where accuracy and insight matter more than they did before, relying on manual processes limits a finance leader’s impact
How outdated systems cause finance teams to fall behind without modern finance capabilities
For finance leaders looking to modernize, having cutting-edge technology features is no longer optional. Increasingly, that means adopting AI tools that enhance speed, accuracy and efficiency.
AI tools play a key role in helping finance leaders modernize by advancing day-to-day operations. With built-in anomaly detection, AI can help proactively identify discrepancies or unbalanced journal entries before they negatively affect reporting. It also helps automate processes like AP and AR to deliver continuous accounting and real-time financial visibility into financial activity. According to SWK Technologies, businesses using AI-driven features have achieved up to 80% time savings in invoice processing, saving days of AP work each month [6].
Without modern capabilities like these, finance leaders risk falling behind because they lack the functionality needed to make more informed decisions, quickly.
Source: BakerTilly
