Finance Transformation

What Is Finance Transformation?

Finance transformation is how finance functions look to update and upgrade their systems and processes to align themselves to the business landscape and their organization’s goals.

It involves a host of strategies and actions, including restructuring of the finance function and operating model, reimagining of finance processes, modernizing finance and accounting systems, introducing new, emerging and relevant technologies, and enhancing skills and capabilities.

Why is digital finance transformation vital for organizations?

Today’s business landscape is witnessing constant change and disruption. The traditional finance model is both inadequate and slow in keeping pace with these changes.

Finance and accounting transformation is thus critical to:

• Sharpen an organization’s competitive advantage
• Address the changing expectations of all stakeholders — clients, employees, investors, etc.
• Navigate uncertainty and leverage new opportunities with speed, agility and capability
• Attract and retain the best possible talent

What are the key elements of digital finance transformation?

Digital transformation in the finance industry involves a holistic and end-to-end enhancement of strategy, processes, practices, operations, and skills and capabilities.

Key elements of digital transformation in finance and accounting include:

• Realigning finance strategy with organizational goals and objectives
• Re-engineering of processes to enhance efficiency of data integration and analysis for insights-driven decision-making
• Selecting and deploying the right technologies to automate tasks
• Implementing the necessary change management practices for a successful transformation
• Ensuring the required development of skills and capabilities

What are the different finance and accounting transformation services that are offered by BPM companies?

Key finance transformation services include:

• Finance transformation consulting for strategic guidance to become future-ready
• Next-gen AI and analytics
• Quote-to-Sustain services
• Procure-to-Pay services
• Record-to-Report services

Additionally, BPM players also leverage finance transformation solutions that integrate domain, data and digital expertise to achieve strategic business objectives for organizations.

What are the key benefits of digital finance transformation?

The right finance function transformation delivers the following positive outcomes:

• Enhanced operational efficiencies in terms of faster processing times, minimized error rates through automation and standardization, and high scalability
• Improved decision-making due to real-time visibility, data-driven insights and greater accuracy of different aspects of financial performance
• Meticulous compliance and more effective risk management with better quality data, stronger internal controls and audit trails, and more efficient regulatory reporting
• Upgrading of the capabilities of finance team members for more strategic and value-added work, agility in responding to market changes, and closer relationship building with other functions

What are some of the best practices in digital finance transformation?

Successful digital transformation in finance industry is made possible through the following practices:

• Envision a future-state design with best practices and tools aligned to organization’s goals
• Intelligent evaluation and prioritization of the scope of transformation
• Focus on creating value for business partners in defining the roadmap
• On-schedule, on-budget and sustainable finance transformation projects