At HighRadius, we talk to hundreds of mid-market CFOs every year. And we understand the challenges they face across key finance functions like accounts receivable, treasury, and accounting. From our conversations with CFOs in 2022, we identified one of the most important responsibilities of CFOs in the coming months will be to support efforts in digitally enabling their workforce—and to raise the bar on talent development so that organizations reach and sustain their full potential.
For CFOs today, solving labor shortages, managing talent, and reassessing skills have become top priorities. With new and disruptive technologies entering the market, today’s CFOs are left with no choice but to keep technology at the core of their business strategy to accomplish these priorities.
According to a recent survey by Gartner, 94% of finance leaders say they need to understand and adopt the latest technology innovations to make a definite impact on business. Mid-sized businesses recognize the need for a digital-first culture to increase employee productivity, but many lack the vision to empower teams with the right tools.
This ebook is the first part of a three-part series that dives into the challenges that lean teams encounter in growing companies. We also look at the benefits of incorporating technology to support team and business goals.
The second and third parts of the series will delve into the various technological solutions that CFOs can leverage to digitally transform their finance landscape and empower their lean team to go the extra mile toward making a positive business impact.
Unlike enterprises, small and mid-sized businesses(SMBs) do not have the luxury of heavily investing in a large workforce for managing company finances. They either have a lean team handling the entire finance function or rely on outsourcing their finance & accounting (F&A) operations. In a majority of the cases, SMBs prefer to have lean teams because of greater accountability, autonomy, and ease of communication.
A lean team can effectively manage finance operations when the business has a relatively smaller base of customer accounts and transaction volumes. As the business grows, the increasing number of customer accounts demands more attention and time from the team. A lean team then gets overburdened with manual and repetitive work and struggles to focus on high-value functions such as customer experience management that impact the business.
Since it becomes difficult for CFOs to grow their finance operations with a lean team, they tend to choose technology as their ally and look for scalable solutions to empower their team and support business growth.
Lean teams are considered more efficient with less bureaucratic controls and faster completion of workflows. But once the volume of operations crosses a threshold level, lean teams may find it difficult to support the growing needs of the business. Here’s some reason why it is so:
This chapter looks at the key challenges that finance professionals face on a day-to-day basis in completing the various finance management tasks such as collections, cash forecasting, and account reconciliation. Read ahead to learn what CFOs of major mid-sized businesses have to say about the finance challenges they face on a daily basis.
Let’s take a look at how automation is empowering lean teams and transforming the finance landscape:
The increasing volume of work will undoubtedly create the need for an increase in headcount to keep up with the finance processes. However effective a company may be at hiring new talent, getting them up to speed with the growing business needs is hard to achieve.
Autonomous finance solutions solve the common challenges faced by lean teams to enhance efficiency and boost company growth. Automation vastly improves finance management and offers the flexibility to scale with the business. Adopting solutions like HighRadius’ Autonomous Finance serves as an accelerator to enable lean finance teams to go the extra mile towards achieving business excellence.
The next part of the series- ’Transform Finance Landscape with Digital-First Teams in 2023’ will delve into the various technological solutions that can be leveraged to combat the challenges faced by a lean team in meeting the growing business demands and provide ways to achieve business excellence.
HighRadius offers cloud-based Autonomous Software for the Office of the CFO. More than 700 of the world’s leading companies have transformed their order to cash, treasury, and record to report processes with HighRadius. Our customers include 3M, Unilever, Anheuser-Busch InBev, Sanofi, Kellogg Company, Danone, Hershey’s, and many more.
Autonomous Software is data-driven software that continuously morphs its behavior to the ever-changing underlying domain transactional data. It brings modern digital transformation capabilities like Artificial Intelligence, Robotic Process Automation, Natural Language Processing, and Connected Workspaces as out-of-the-box features for the finance & accounting domain.
Finance business stakeholders have been led to believe that they have only two choices: pick an application software vendor that digitizes a paper or Excel-based process to an electronic system of record, or, choose a middleware platform for AI or RPA to build and maintain in-house, domain-specific capabilities. In contrast, HighRadius Autonomous Software combines the best of both worlds to deliver measurable business outcomes such as DSO reduction, working capital optimization, bad-debt reduction, reduce month close timelines, and improved productivity in under six months.
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HighRadius Integrated Receivables Software Platform is the world’s only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway – covering the entire gamut of credit-to-cash.