Financial management software can make business processes more efficient, streamlined, and accurate and help with the strategic planning process. It is also important that these solutions are chosen for the right reasons, rather than simply opting for tech for its own sake.
A modern CFO software stack can 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 tools: The fundamentals
Some solutions and key features play a core role in the CFO's day-to-day responsibilities and accountabilities.
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 forward, that may be changing.
Core business functions are increasingly being transferred to specialist software packages with features such as greater automation, predictive analytics or other business intelligence. These finance tools save time with financial information and improve accuracy.
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 that make financial tasks more efficient.
Introducing accounting tools goes hand in hand with reducing errors. This is because manual re-keying and paper-based financial processes (which are inherently at risk of human error) are either reduced or eliminated completely, and task automation is introduced.
3. Financial modelling tools
Using software specifically designed for this task can enhance the creation of financial models, e.g., for pricing or valuation. This allows the CFO to simulate the impact of unlimited potential business activities and outcomes based on altered income and expenses, and other financial situations.
Doing this quickly not only boosts CFO insight, but it provides the evidence needed to make confident presentations to the C-Suite about potential future performance.
The key theme moving beyond these fundamental tools in the CFO kit is automation. Read more about the benefits of automating your financial management software with our latest eBook.
Finance tools for CFO's: 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 be aware of how new solutions and trends can potentially offer fresh opportunities to improve how and why things are done.
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—that ultimately can't ‘talk’ to each other invariably create problems.
Enabling integrated and streamlined interaction between business areas makes for more timely financial decision-making and financial reports that present a holistic view of the business for the senior leadership team.
System integration also allows for centralised and controlled access to financial data, which builds and protects ‘one version of the truth’, as opposed to siloed data sets, which can 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 in financial operations have been achieved by CFOs who embrace automation capabilities in their department.
3. Digital transformation
This trend is impacting all business areas, not just specific functions. In a nutshell, the term' digital transformation’ refers not just to leveraging digital tools for CFOs and their finance team, but the right tools across all business areas.
Digital transformation facilitates fundamental change in how the business operates and delivers value.
Improvements can focus on a multitude of objectives, including improving business growth and financial health, reducing friction, increasing productivity, or elevating profitability.
4. Cloud capabilities
A wide-scale 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 software is that it allows for the creation of highly sophisticated and secure data and solutions. These can be accessed remotely at a fraction of the cost of achieving the same results in-house.
Of course, this will appeal to CFOs from a business security and financial performance perspective as well as cost, particularly if remote working across the business is likely to continue.
What's next for CFOs?
Clearly, CFOs have many options to consider when deciding which software tools to trust. The right finance tool stack can vary depending on the CFO's technical experience, the size of the company in question, and the aims of the finance function.
Finance leaders and their accounting teams who invest in financial systems with streamlined, automatic processes and real-time data can truly enjoy a time-rich and efficient working life free from errors and duplication. Daily operations are enhanced with opportunities to focus on value-adding work such as strategy development and growth plans.
- Download our latest eBook: Automating your finance and accounting practices.
- Find out more about Access cloud-based finance software.
- Discover how to be a more strategic CFO on our dedicated resource hub.
- Get in touch with our expert team to find out how your business can benefit from Access Finance solutions.