New technologies are transforming every aspect of business. From mobile to cloud, AI, IoT, RPA, blockchain and more, organizations who have undergone a digital transformation are experiencing more streamlined processes, unprecedented efficiencies, deeper insights and happier customers. As finance is traditionally considered a back-office function, it is often overlooked for cutting-edge digital projects. It’s up to the CFO to champion for change. But how can you, as that finance leader, be sure of the need?
Here are 4 questions you can ask yourself to discover if your finance organization needs a digital transformation:
1. Am I armed for leadership table discussions?
Of all the players who sit at the leadership table, only the CFO or the senior finance executive can speak to the company’s ability to handle the ongoing cost of doing business. In order to provide actionable insight, you need systems in place that arm you with accurate, real-time data. You require complete visibility over the organization’s working capital and receivables, including: days sales outstanding, accounts receivable risks, the cost of the collections process, customers at risk, and much more. Do your current finance systems provide you with the clear and concise reports you need to be fully prepared?
2. Do my current technology projects enable maximum cost savings?
Many organizations have plans to implement or modernize their ERP system. If such a project is on your roadmap, it’s important to understand that modern ERPs will not solve all of an organization’s issues as it relates to process efficiency and optimization. The good news is that although ERP projects require a great deal of focus, it’s not so much that no other technology project can be considered. Review the projects you are committed to and ensure they are delivering everything that you need. If they’re not, consider other options.
3. Can I accommodate the changing needs and wants of my customer?
B2B customer expectations are changing. People expect to be able to pay for goods and services online, quickly and easily, both in their personal and professional lives. Common practices in the B2C world are quickly becoming requirements in the B2B world. Organizations need to allow for things like online payments, paying with credit cards, digital receipts/invoices and payment portals, to a name a few. As the CFO, can you confidently state that your current receivables process satisfies today’s market demands? Is it agile enough to keep up with changes in the future?
4. Is my finance IT infrastructure safe and secure?
When a security breach happens, and a customer’s financial data is compromised, significant damage is done to both the customer relationship, and the organization’s credibility in the market. It doesn’t matter if the security breach happens because of hardware failure, software access, or human error. Such an occurrence is devastating to an organization’s reputation and bottom line. When is the last time you reviewed your current systems and processes for security compliance? Are you confident that all employees and third-party suppliers meet and maintain your security and compliance standards?
If you answered ‘no’ to any of the above questions, you are leaving your organization at risk. From loss of customers to bad decisions made based on inaccurate or incomplete data and even a potential security breach. One digital transformation project that can help address the above four issues is AR automation.
Accounts receivable automation solutions provide complete visibility into a company’s receivables. With clear and concise reports, including historical trend reports, finance leaders are able to forecast cash flow well into the future, providing the business with an accurate picture of what the organization is capable of long term and what change is needed to succeed. By providing customers with a self-service payment portal, AR automation improves communication with the customer and gives them the option to interact with your organization when and how they want. The right AR automation platform will also help to ensure your customer and financial data are secure by being PCI DSS, SOC 1 and SOC 2 compliant.
LBMC Technology Solutions partners with a variety of software solution providers to deliver the best functionality to meet our client’s needs. Whether clients are looking for a solution to help with AR automation, business management, CRM, ecommerce, finance and administration, inventory management, payroll, point of sale, tax management or time and expense, we have a partner that can help. Visit our Software Partners page to learn more.