A quick guide to CFO software
Thank goodness the days when business finance was conducted using handwritten ledgers and impressive mental arithmetic have long since passed. Now, having the skills to use technology effectively is an integral part of the modern Chief Financial Officer (CFO) role. But with so many options available, which solutions provide the most practical benefits? In this article, we summarise the software tools which are of most use to the modern CFO, as well as the latest technology trends to look out for.
Whilst it’s clear that technology can make Finance more efficient, streamlined, accurate and strategic – it is important to ensure that solutions are chosen for the right reasons, rather than simply opting for tech for its own sake. Modern software tools can (and do) make life easier for CFOs and their finance team in a variety of ways, and it makes sense to periodically review what is in place and check that it is delivering the expected benefits.
CFO software: The fundamentals
There are some solutions and functionality which play a core role in the day-to-day responsibilities and accountabilities of the CFO. These are summarised below:
1. Spreadsheets
Microsoft Excel and similar products such as Google Sheets and Numbers for Mac have long been favourites of CFOs and their teams. They’re used for a whole host of tasks such as quick calculations and exportable graph creation. But looking forwards, that may be changing. Bookkeeping functions are increasingly being transferred to specialist software packages with more automation included as this saves time and improves accuracy. And the increasing pressure on CFOs to deliver more sophisticated financial modelling is driving demand for software tools with more advanced capabilities than the traditional spreadsheet packages can easily provide.
2. Accountancy packages
Many CFOs agree that their finance teams – whether internal or external – need access to accountancy software packages which make work more efficient. Introducing software goes hand in hand with reducing errors. This is because levels of manual rekeying and paper-based processes (which are inherently at risk of human error) are either reduced or eliminated completely and automation of tasks is introduced.
3. Financial modelling tools
The creation of financial models e.g. for pricing or valuation can be enhanced by using software specifically designed for this task. This allows the CFO to simulate the impact of unlimited potential business activities and outcomes based on altered revenue or spending scenarios. Doing this quickly not only boosts CFO insight, it provides the evidence needed to make confident presentations to the C-Suite about potential future performance.
CFO software: The trends to watch
Whilst many CFOs and their teams will have the fundamental tools in place in some form or another, it is also important to stay up-to-date on up and coming trends. The technology sector is one area of business that never stands still, therefore CFOs should also be aware of how new solutions and trends can potentially offer fresh opportunities to further improve on how financial responsibilities are met and new opportunities for the business realised.
1. Integrated systems
Integration is a key technology trend, not just for finance oriented technology but across the entire business. Separate stand-alone systems – even individual solutions – which ultimately can’t ‘talk’ to each other invariably create problems. Enabling integrated and streamlined interaction between business areas makes for more timely decision-making and a holistic viewpoint for the senior leadership team. Integration of systems also allows for centralised and controlled access to data that builds and protects ‘one version of the truth’ as opposed to siloed data sets which become a breeding ground for problems.
2. Automation
Finance solutions have evolved considerably in recent years, not least because the highly process-oriented Finance function is so well suited to clever automation. Many specialist finance technology providers offer solutions that leverage machine learning and AI to automate specific functions such as invoice processing, financial analysis, payroll administration, collections action, and preparing financial statements. Some real strides forward have been achieved by CFOs who embrace automation in their department.
3. Digital transformation
This trend is having an impact across all areas of business, not just specific functions such as Finance. In a nutshell, the term ‘digital transformation’ refers to leveraging digital technology across all areas of a business and thereby facilitating fundamental change in how the business operates and how it delivers value. Improvements can be focused on a multitude of objectives including improving business agility, reducing friction, increasing productivity, or elevating profitability for example.
4. Remote capabilities
A widescale move to the cloud – not just for finance software but for all kinds of business applications – has really gathered pace recently. Perhaps one of the most transformative elements of cloud accounting technology is that it allows for highly sophisticated and secure data and solutions to be created and accessed remotely at a fraction of the cost of achieving the same results in house. This will of course appeal to CFOs from a business security and performance perspective as well as a cost perspective – particularly if remote working across the business is likely to continue.
Clearly CFOs have many options to consider when deciding what software tools to put their trust in. Depending on the technical experience of the CFO, the size of the company in question and the aims of the Finance function, the right solution can vary. However in the end, it’s only by investing in a full financial software suite with streamlined, automatic processes and real-time data that CFOs and Finance teams can truly enjoy a time-rich and efficient working life free from errors and duplication, and enhanced with opportunities to focus on value-adding work such as strategy development and growth plans.
What next?
- Download The Strategic CFO: myth or reality? whitepaper
- Find out more about Access cloud-based Finance software.
- Discover more about CFO and FD skills for success.
- Get in touch with our expert team to find out how your business can benefit from Access Finance solutions.
This article was reviewed on 19th May 2022.
