On September 11, 2024, I had the opportunity to attend a conference sponsored by BlackLine, a leader in G2's Financial Close, Accounting, and Financial Reconciliation categories. The conference was dubbed The Bottom Line, with its main emphasis on the importance of digital finance transformation.
This was a great opportunity to learn more about end-to-end finance and accounting processes, what technologies are available to enhance these processes, and some roadblocks along the way. I also got to hear from real-world users of these technologies and their experiences.
The importance of digital finance transformation
Financial and accounting (F&A) departments have historically been slow to adopt new technologies and digital processes. This isn’t necessarily due to a lack of interest but because the stakes are high in this field, especially when accuracy, efficiency, compliance, and audibility are a must. Because of this, any organization that employs an F&A team should be “future-ready” and willing to transform their processes when necessary.
The term “future-ready” was used a lot throughout the day, but what does that really mean? According to BlackLine, it can be divided into three areas:
- Have a digital ambition: Ensure that a company is aligned on what technologies it needs, how it will use them, and how new software will put the company in a better position than before.
- Build a culture of change: Instill a mindset that embraces change and new ways of working and isn’t afraid to try something new.
- Select the right technology partners: Create a proper tech stack to ensure efficiency, security, and adaptability, which helps to keep a company streamlined and competitive.
Challenges for digital transformation
According to a recent McKinsey study, 70% of digital transformation initiatives fail, which proves the significant risks and challenges associated with this type of project.
Some of these common pitfalls include:
- Lack of vision and alignment: Without a clear vision and proper alignment across departments and employees, digital changes often don’t work well. This can lead to a waste of money, time, and resources.
- Cultural barriers: Employees often resist change due to various concerns, such as comfort with the current process, lack of skills, fear of failure, and misalignment with management.
- New technology with old processes: Often, new technologies require new processes to support new features, but as mentioned above regarding cultural barriers, organizations keep the processes they already know and have grown accustomed to.
The role of AI in F&A digital transformations
As companies embrace new technologies, it’s no surprise that AI will play a significant role in financial operations. Perhaps most importantly, AI will help turn real-time financial data into actionable insights, enabling F&A teams to make more informed decisions.
AI will also assist in automating repetitive accounting tasks, such as expense reporting, payroll, and reconciliations. This frees up time and allows employees to focus on more valuable tasks. Additionally, AI features help F&A teams ensure data accuracy and regulatory compliance while minimizing risk.
How G2 can help build F&A tech stacks
The BlackLine conference focused on the role of digital transformation in F&A teams, some steps that can be taken to help ensure a successful transition, common roadblocks along the way, and how the incorporation of AI can save time, money, and headaches.
With G2’s Financial Close, Accounting, and Financial Reconciliation categories, among others, users can easily research hundreds of products and compile the best F&A tech stack to match their particular strategies and current technologies.
Learn how other technologies impact accounting software.
Edited by Jigmee Bhutia
Take steps to be future-ready
