When the COVID-19 pandemic began, many finance and accounting organizations were still getting used to change as the new normal. Suddenly, uncertainty became a common sentiment for companies around the world.
With very little time to prepare, F&A teams had to figure out how to work from home and close virtually with a distributed workforce. Audit teams had to start performing their procedures remotely, and the roadblocks created by manual close processes and undocumented institutional knowledge became greater than ever before.
But we live in a digital age, and while the transition to a virtual professional world isn’t easy, it is possible to leverage what may seem like chaos into strategic advantage. And doing this successfully all comes down to using the right technology.
In August of 1991, the World Wide Web was born and in 1992, the first true smartphone made its debut. In 2003, Skype was created and in 2011, Zoom was founded.
These innovations have all been introduced during the past thirty years, and it’s hard to imagine navigating a global pandemic without them. So then, why would you continue closing the books using spreadsheets and manual processes?
The electronic spreadsheet is over forty years old, and the framework of a general ledger hasn’t changed for more than 500 years. And yet so many F&A teams are still relying on spreadsheets and time-consuming, manual processes to close the books every month, every quarter, and every year.
Meanwhile, technology solutions that are purpose-built for Accounting and Finance are driving digital transformation for leading organizations around the world, and these solutions have become even more vital during this unprecedented time.
Closing virtually and performing remote audits is significantly more challenging when dependent on manual processes. Companies that already had the right finance automation solutions in place have been closing virtually on time and with confidence since the pandemic began.
It’s not too late for you and your teams to make the move to modern accounting technology that can unify data and processes, automate repetitive work, and drive accountability through visibility—during this crisis, and beyond.
Traditional manual accounting processes are not sustainable—and as many F&A teams began working remotely at the start of the pandemic, this became even clearer. To thrive in the midst of heightened uncertainty, risk, and accelerating change, organizations must move to modern accounting—which begins with adapting to changing circumstances through collaboration, visibility, and control.
For decades, accountants have been tackling the month-end close with manual processes tracked with checklists. Until recently, repetitive, brute-force effort was the only option.
Now, innovative technology is automating those repetitive tasks and workflows with rules-based logic, and the sophistication of these solutions is growing with robotics, machine learning, and AI.
According to Deloitte’s State of AI in the Enterprise survey, 74% of adopters agree that AI will be integrated into all enterprise applications within three years. Additionally, 67% of all respondents are already using machine learning, and 97% are either using or planning to use it within the next year.
Here are five ways technology is equipping F&A teams to move to modern accounting and thrive in this virtual world.
Gartner research shows that 72% of companies plan to leverage the cloud for financial applications in the next three years. Data from The Hackett Group shows that over 70% of finance organizations that have adopted cloud-based solutions have achieved or exceeded their business expectations.
Continuous Accounting is powered by in-memory and cloud-scale computing, enabling most accounting processes to happen in real time instead of creating a crunch at the end of the period.
When automation, control, and period-end tasks are embedded within day-to-day activities, the accounting calendar is more closely aligned with the broader business. This results in a more efficient close, more accurate and complete financials, and a more effective organization fueled by real-time data and deep analytics.
Continuous Accounting shifts teams from the heavy end-of-the-period workload of the traditional record-to-report calendar to a more balanced cadence, creating more time to focus on exceptions and judgment-intensive activities.
Accuracy and integrity increase exponentially, and traditional roles can finally evolve because of the elevated skillset that is now required. Analyzing real-time data and reporting is also more critical now than ever before as business environments continue to change rapidly.
Effectively implementing Continuous Accounting requires a holistic approach, combining a mix of technology, process, and people to realize continued improvements across the accounting organization.
Using technology to automate month-end processes enhances the benefits of process optimization, while increasing the overall productivity of accounting team members. Optimized processes will reduce risk, improve accuracy, and increase efficiency, benefiting the entire accounting and finance function.
Read this ebook to learn more about how to begin this journey at your organization.
Accountants tend to be underappreciated by the business. But when the most tedious, time-consuming processes are automated, they finally have the opportunity to showcase their value. As they begin driving business outcomes instead of reporting on what happened four weeks ago, they’re more likely to garner recognition.
We live in the age of analytics, and the demand for finance professionals who can interpret data will continue to increase. McKinsey predicts that 2 to 4 million jobs created over the next decade will involve interpreting machine insights—and the demand is set to far exceed the number of qualified professionals.
Additionally, as accounting professionals provide deeper business insights, they can become more proactive, and manage risk better by identifying it in the early stages. This leads to a career shift that many accountants strive for: becoming a strategic partner to the business on every level.
Start with a top-level measure of success, such as time to close. Functional drivers provide the next level of drill down—so link them back to your overarching metrics. Operational drivers provide the deepest level of process insight and are the jumping point to take action.
Rolling forecasts and continuous planning projects driven by FP&A require a steady stream of financials. Accounting initiatives like cutting days to close with techniques like Continuous Accounting, or even moving to a virtual close with modern accounting technology, can provide FP&A with earlier or real-time access to financial results.
Read this guide to analytics for Accounting to learn more.
Business partnering has been on the accounting and finance agenda for years. But double checking the financial statements, tracking down reconciliations, certifying controls, and supporting audits have all rightly taken precedence—as these tasks require substantial, if not all-encompassing effort.
When the business looks to Accounting and Finance for support and to provide timely insight into key financial figures, they need that data to make decisions now―not after the month-end crunch is over and the reporting is complete. And in a virtual world full of uncertainty, timely and accurate insights from Accounting are essential as business decisions carry significant weight for future performance.
With the rise of technology and intelligent data analysis, the finance function is in a unique position to deliver valuable insights for the future of the businesses they serve. Leading organizations are rebalancing Accounting’s role by applying the technology that leads to big business partnering benefits.
In a survey of accounting and finance leaders, Deloitte identified commercial acumen and decision making, customer focus, strategic thinking, and relationship management as the top skillsets that every finance professional should strive to add to their competencies.
Adding business skills and being more proactive around identifying business risks are both essential to adding a partnering element to your team’s skillset. And achieving this requires freeing up workloads and changing accounting processes to make room to nurture the change.
A modern accounting platform processes month-end tasks in real time, over the accounting period, not just at month end—shortening the close and freeing up time for more partnering.
Read this playbook to learn five ways to upgrade you and your teams to business partner.
Audits can be a painful ordeal and a recurring burden for accounting teams under normal circumstances. With most companies operating with a remote, distributed workforce, it’s inevitable that conducting audits this way will follow suit.
The challenges facing auditors will only increase now that they’re done virtually—from being able to access basic information and link to supporting documentation to conduct your audit or quarterly review all the way to being able to attest to or assess the accuracy of the financials, which is an entirely different ballgame.
But stress and anxiety don’t need to be a part of the audit process, and an efficient remote audit is possible. Companies that utilize financial close technology move through audits faster and with better results, and they have stronger, more transparent financial management throughout the year.
It’s critical for F&A teams to have the right technology in place. Use this question as a starting point: do you and your auditors have an integrated PBC list where both parties can access items, directly link supporting documentation, and review real-time status without having to set up meetings to discuss?
If not, it’s time to begin exploring the technology that can get you there. Technology creates transparency, and transparency builds trust—which extends across all levels of both accounting and audit teams, from staff to senior executives. It’s a win-win relationship that pays dividends well beyond the COVID-19 crisis.
Read this white paper to discover more about how to transform your audit with technology.
Thriving during and beyond this crisis hinges on retaining and attracting top talent.
Accenture says that “together with analytical skills, the Finance workforce of the future needs an appetite for risk, a stomach for ambiguity, and the guts of a savvy business advisor. Attracting, retaining, and building these skills means profound changes to finance talent strategy—because the work of Finance, who does it and how, will never be the same.”
Successfully embracing change and navigating uncertainty begins with developing a culture that attracts top talent and enables your people to compete on a whole new level. This looks like automating rote processes and moving to a modern accounting approach, so that your highly skilled accountants have the time they need to partner with the business.
We’re at an inflection point for change that will elevate the accounting and finance organizations that embrace and effectively prepare for it. And in turn, those who successfully build their skillset for the rising tide of intelligence will be rewarded.
Morale has always been a key to retaining and attracting top talent, and right now, it’s essential to take care of your people, appreciate them, and understand their circumstances.
Ask yourself:
Purpose-built technology is key to shaping the way you work now and into the future, ensuring that you’ll attract and retain your top talent.
Read this playbook to learn more about how to solve the F&A talent dilemma.
These are unprecedented times, and the COVID-19 pandemic has disrupted Accounting and Finance in ways we never thought possible. No one can predict how long this will be our new normal, but one thing is certain: we all have a choice in how we respond to this crisis.
We can focus on the roadblocks—and there are many—or we can choose to adapt and find the opportunities, and these are abundant, too. Organizations that become more strategic and adaptable by making the move to modern accounting and implementing the right technology will thrive in this virtual world.
As a starting point, focus on these two areas:
1.
What can I do to help my organization embrace and accept new technology?
2.
What can I do to position myself right?
Building your skillset to help you capitalize on the disruption that will inevitably continue is how you can truly thrive during and well beyond this season of so much change and uncertainty.
Aimee Leishure, former SVP of transformation at Laureate International Universities, says this:
“I’ve run many transformations in my career and have seen how resilient people are. We will get through this moment in our history and come out better on the other side.
"People and organizations might not look the same as they did [at the beginning of this year], but we will overcome and business will come back even stronger. People will adapt to change and improve the future."
