By Omar Hawa, partner and accounting and advisory practice leader at MorganFranklin Consulting
Chief Financial Officers (CFOs) confront unique challenges every day, especially when it comes to new technology and financial reporting. The rise of generative AI and other automated systems has created pressure for companies to adopt new technology – and fast – to avoid falling behind their competitors. But up to 60% of software buyers regret what they have bought within roughly a year, according to Gartner, a research firm. So how can CFOs choose the right technology for their companies and put it to proper use for financial reporting? Here are three strategies to get started.
- Identify the Root Problem
More and more businesses want to buy the trendy new AI tool in response to staying ahead of their competitors. But your company may not be ready for it – or may not need it at all. The first step that your company may need to take is to identify the problem you want to solve within your organization. Once you’ve done so, you can start evaluating the right tools, budget and timeline to drive change.
- Think Long-Term
One of the most common mistakes we’ve seen companies make: rushing to put a new enterprise system in place before cleaning up their master data. Use the new system as an opportunity to organize and clean up your data first. This will not only maximize your return on investment, it will also take the pressure off training your employees and help keep stakeholders happy. Also, in the planning phases of the project, build in extra time for upgrades and maintenance in case the unexpected happens. Remember, it’s not just about upgrading your financial reporting system – it’s about taking your whole organization to the next level for the foreseeable future.
- Guarantee Internal Buy-in
Change management matters, especially when it comes to digital transformation. You have to take a collaborative approach, get stakeholder buy-in, carry out a tailored communications strategy, and make sure everyone being trained in the new tech feels supported and connected to the business strategy. It’s not easy, but success starts with creating intranets and two-way feedback loops, so everyone can access the right information throughout the entire process.
Change is never seamless. People have to adapt to make it work. But your compass should be why you began this process in the first place. If you do it right, it will be worth it.
