• The Digital CFO

Why investing in a Digital CFO is imperative post-pandemic

Historically CFOs and their teams have been hidden away and have not been an externally facing function within a business. However, over the last two years they have evolved into strategic business partners, with an outward facing seat at the table.

Thanks to COVID-19 and ongoing market shifts, most businesses, not just SMEs have had to adapt to fast-changing conditions and adjust financial forecasts on-the-fly. This has resulted in businesses increasingly turning to their finance teams to guide them through these constant changes.

Not very many, if any SMEs had a business continuity plan, let alone a disaster recovery plan, and It’s unfair to say that it is just finance teams who weren’t prepared. In fact, most functions within a business, including finance teams had shortcomings in their ability to respond to the impact of COVID-19. This meant that they have struggled to forecast accurately or scenario plan, all of which has hindered business’s ability to anticipate and react to shifts in the market.

These gaps in financial planning and budgeting have kickstarted the need for businesses to accelerate and in most cases start their digital transformation, which is needed to better navigate today’s new normal business environment.

As businesses scrambled to respond to the pandemic’s unprecedented impact, finance teams quickly learned that they needed access to real-time data to make their decision making more accurate. This has resulted in businesses migrating to cloud-based accounting software such as Xero at an exponential pace. However, it’s all well and good using a cloud-based accounting software, but without knowing how to use this data to support financial planning and budgeting, it is practically useless.

The bottom line is that modern digital finance, is about adding value, and leveraging new technologies. The convergence of new skill sets, and technological capabilities of cloud-based accounting software means that businesses have the tools they need to adapt more quickly to changes, while also future-proofing their business with more strategic and insightful decision making.

Our Digital CFOs are at the forefront of the developments in technology and are well placed to support businesses with or without a finance team, to adapt to cloud-based accounting software, and to utilise the data held within it. Book a discovery call today to discuss how our CFOs can support you and your business to develop your finance function.

4 views0 comments