Benefits of finance department digitalizationAlina Făniță
The rapid advancement of technology has forced companies in many industries to decide to upgrade their internal operating systems. Changes and implementations that could have lasted for years, have been achieved rapidly under the pressure of changes in the business environment in recent years.
Among the most advanced departments on this path is the financial one, which although in many companies has adopted digitalization among the first, is still behind the digital conversion of processes relevant to the relationship with internal and external customers or stakeholders.
Digitalization of financial management processes not only increases the level of efficiency of these departments, but also reduces the level of stress of employees. If until recently, implementing digitalization was more of an option, now it has become essential.
The current business environment does not allow organizations to operate without access to information almost 24×7, from the company’s headquarters or remotely. In this sense, the digitalization of the financial department offers advantages and solutions that contribute to the proper functioning of all processes within the company.
We know that it is essential that financial information, regardless of context, be accessed promptly, relevantly and securely. Just as it is essential for the financial world to focus on digital practices, keep up with technology and respond to the needs of stakeholders. Digitalizing internal operations makes employees more productive, streamlines business functions, and helps companies deliver better services.
Here are some of the benefits of the digital transformation of the finance department:
What kind of common mistakes do we have in this department? Writing errors, corrupt links, insecure old data and other related issues. The list goes on. The digital transformation emphasizes the use of a single platform for the financial management part. In this way, teams have a 360-degree perspective on reports and indicators, and errors become much easier to detect. Good organization is a key element, and digital transformation works to keep everything centralized and organized, even inter-departmental. The end result is reduced errors and better compliance with legislative requirements and financial regulations.
Strong data security
Working with sensitive financial data and lack of expertise in cybersecurity are risks to information security. That is why it is up to CFOs and other top management leaders to find a system that prioritizes information security. In a digitalized finance department, sensitive data can be stored in a secure system. Advanced security is needed to protect sensitive data and to effectively manage those who can access it, within the team or inter-organizationally.
New digital technologies and clear processes are essential for real-time data processing. Moreover, they make it much easier to perform advanced analyzes. Manual review of analyzes will no longer be required. A digital process for running advanced reports will improve the accuracy of management data and reduce the time allocated to these repetitive tasks. In addition, with the right solution, the financial team can take advantage of automated analyzes that are adaptable and will no longer rely on manual processes to obtain information processed specifically for certain management purposes.
In many finance departments, employees still waste time performing repetitive, tedious tasks that can be simplified by digital transformation. Digital tools can help streamline processes such as supplier management, cash flow forecasting, commitment planning of various types and the preparation of audits. The digital transformation provides support to financial teams, making their work easier and more efficient.
As new global crises unfold, the implementation of digital processes allows financial teams to work from the office or home with the tools they need. Even if it has been started, the digital transformation of financial departments needs to be accelerated to allow teams to streamline financial activities, increase cooperation, and harness the potential of data through automated analysis. All this helps the operations in the finance department.
Alina Făniță este CEO și Partener al PKF Finconta. A lucrat cu companii multinaționale sau firme antreprenoriale din domenii diverse de activitate, pentru a le oferi servicii de audit financiar, due diligence, restructurări de grupuri, audit intern și alte servicii conexe activității de control intern. Este membră a celor mai prestigioase asociații profesionale din domeniu: ACCA (Association of Chartered Certified Accountants), CECCAR (Corpul Experților Contabili și Contabililior Autorizați din România), CAFR (Camera Auditorilor Financiari) și IIA (Institute of Internal Auditors). A absolvit EMBA Asebuss la Kennesaw State University, a fost trainer pentru cursuri IFRS și este invitată ca expert la numeroase conferințe de business. firstname.lastname@example.org