Technological improvements have had an impact on every part of the company. The decade leading up to 2021 saw unprecedented shifts in global corporate practices. While the accounting department does not always receive the recognition it deserves, it is the lifeblood of every company. A company’s success must manage its earnings properly.
The accounting department is your entire responsibility as a Chief Financial Officer (CFO). CFOs are more than simply bean counters, with the ability to stay up with technology advancements relevant to their responsibilities as accounting department heads. This article will go through the seven tools that every CFO should be familiar with as we approach 2022.
According to a Deloitte global blockchain survey from 2018, 74 percent of influential organizations felt compelled to implement blockchain technologies.
Blockchains are immutable, decentralized, shared ledgers that record all transactions securely and in near real-time (incapable of being altered or deleted). Blockchain has the promise of creating incorruptible accounting ledgers that are constantly updated.
The potential for blockchain to disrupt finance, payments, verification and audits, compliance, and the supply chain is enormous. Blockchain will eliminate human intervention and bottlenecks caused by physical or manual document transfer in these operations.
Contract and document management is one promising application of blockchain: digitizing and shifting the governance of paper certificates, guarantees, and contracts into a blockchain, which may automatically update the documents when a triggering event happens.
A blockchain, for example, may link ledgers from throughout an organization’s supply chain—supplier, manufacturer, distributor, shipper, retailer, and end-consumer—to make operations like monitoring a product’s trip more precise and efficient. Today’s CFOs must be aware of blockchain and the opportunities it provides.
2. Task automation tools
According to Gartner, as of late 2018, 56 percent of organizations were looking into AI to automate part of their financial activities. This figure is likely to become much higher. There are predictions that automation may use AI to improve profit by roughly 38 percent, resulting in a $14 trillion gross value added (GVA) by 2035.
Google Sheets, Power Query, and other task automation tools can help you automate repetitive computations or data transformation processes. They provide a far more user-friendly experience and minimize the need for Software Coders or old Excel macros (VBA). They can use Microsoft Task Scheduler and Robotic Process Automation (RPA) to automate processes outside of the Excel or spreadsheet environment.
These tools effectively eliminate human mistakes while delivering precise findings. With the automated, readily available information, CFOs may improve their decision-making techniques.
3. Analytics & Data Science Tools for Decision Making
Thorough knowledge of data science is required for today’s financial executive to harness the possibilities of data properly. Sticky customers, product performance, solid procedures, delivery mechanisms, and productive people resources contribute to an organization’s success. Its capacity to raise and carefully use the resources generated by this expansion is the key to its success.
CFOs may use Business Intelligence and Analytical tools to analyze large datasets from many departments, create customized KPIs for tracking, slice and dice numerous KPIs, and dive deeper into causes for under-or over-performance, resulting in better decision-making.
There are many different types of BI solutions for selection. Examples are Microsoft PowerBI, Tableau, Google Data Studio, SAP Business Objects, Zoho Analytics, and more.
4. SaaS ERPs & Function-Specific Applications
Non-accounting workflows are often challenging to track and automate with accounting software. SAP, Oracle, Navision, Microsoft Dynamics, and Sage are a few examples of large-scale ERP solutions. However, a slew of industry-specific cloud-based ERP solutions has recently been available. These are software-as-a-service (SaaS) options that are reasonably priced.
There are also function-specific tools, such as Zoho, Slack, and Hubstaff, used for project and time management, respectively. A number is a tool for managing receivables. Lastly, Petty Cash Expense reimbursement systems use Happay.
These tools allow automated workflows for specific functions and ensure that clean and consistent data is available for planning and analysis at the organizational level.
5. Basics of Data Security Tools
According to recent research, corporate risk management is a part of 55 percent of CFOs’ jobs, and 33 percent of CFOs are in charge of cybersecurity risks. Data breaches have surged in high tandem with the increased use of cloud storage. A CFO must have a fundamental awareness of the systems that secure corporate and user data and how to avoid cybersecurity threats.
A firewall is one of an organization’s most dependable and front-line defenses. Firewalls are recognized to improve cybersecurity, whether they are used as stand-alone or as part of a more extensive security system. When data theft is a constant threat in today’s environment, cloud security vendors who offer Security as a Service (SEaaS) are a valuable tool for CFOs.
A private APN (Access Point Name) is a way for a mobile device to connect to an IP network. Taking the APN settings or using a private APNs makes it secure and straightforward for CFOs to connect to the company’s network.
6. Check Stub Makers for Paystub
Because certain states compel businesses to file and issue pay stubs, CFOs need to use a check stub maker to create a paycheck. They should compare the entire dollar amount of all check stubs to your accounting records’ wage expenses and other labor costs.
Upon payment, most states require companies to provide their employees with a paycheck stub or payslip. CFOs may email the pay stub to the employees or include it with their paycheck to inform them of their direct deposit.
CFOs can use a check stub maker to create or download stub templates from the internet. Some of these tools will even perform all of the computations; all they have to do is input the data. They also make an employee check stub by typing all the information into a word processor. Microsoft Office, for example, provides its pay stub form.
CFOs can maintain track of their annual spending by keeping copies of all the pay stubs they issue. It is also good to retain copies of the pay stubs for legal reasons.
7. Comparison Charts
It is a broad and generic category; however, it incorporates various comparative analysis techniques. CFOs, for example, will almost certainly want to assess success by examining patterns over time. Leaders may also wish to evaluate their position about their competition. In the end, leaders cannot just rely on facts in a vacuum. They must also assess the data’s importance over time compared to other forms of data, both internally and externally. Therefore, investing in a data analysis tool that produces this kind of graphical snapshot fast is essential.