Build a resilient Finance & Accounting function for navigating through geopolitical complexities

Key takeaways from the blog

1. A CFO is responsible for mapping the enterprise risk appetite while protecting the P&L.
2. Geopolitical uncertainties compel CFOs to assume a strategic enterprise leadership role.
3. Autonomous Finance & Accounting builds an operational resilience and prepares the CFOs for the strategic role.

As the market traverses complex geopolitical times, it has become mandatory for the CFO, as the head of the Finance & Accounting function, to assume the role of a strategic leader. The CFO has to think beyond business continuity and towards operational resilience. The CFO is largely responsible for mapping the enterprise risk appetite and having the real-time data at hand for steering the management discussions and decisions. It brings Autonomous Finance & Accounting paradigm to the forefront for freeing up cash flows in time for bolder decision-making at the enterprise-level. Unified F&A platforms in Native Cloud environment help to maintain a centralized control over global operations for anticipating the impact of geopolitical challenges and mitigating them early. It mandates adopting Automation and Next Generation Technologies for innovation and growth even while navigating through complex business landscapes. 

Challenges encountered by a CFO in modern business landscapes 

1. Evolving business requirements: Account closure within 2 to 3 days is a must-have in contrast to 30 to 45 days earlier.
2. Spiraling responsibilities: Today, CFOs are looked upon to shoulder strategic responsibilities in troubled business landscapes.
3. Unpredictable geopolitical incidents: CFOs have to take dynamic decisions amidst volatile scenarios, which are likely to impact P&L. They are key decision makers for sustaining cash-flow.
4. Streamlining Finance & Accounting processes: Streamlining business processes while managing technical debt of legacy systems is a tight-rope walk.
5. Data security: Finance & Accounting functions work with highly sensitive data. CFOs have to be technologically adept to identify and mitigate data risks.
6. Informed decision-making: Authentic data is the baseline for all decision-making. CFOs have to ensure timely book closures to access real-time data as well as free up cash-flow in a timely manner.
7. Compliance and Risk Management: Finance & Accounting functions have to comply with umpteen statutory regulations. Predicting risk for timely mitigation is a must-have.
8. Centralizing processes: Global operations deal with different tax treatment and regulations. CFOs have to navigate about the thin line between process localization and centralization.
9. Building efficiencies: CFOs have the responsibility to improve productivity and operational efficiencies in the CFO back-office through human error elimination and system integration.

Build Finance & Accounting Resilience – Steer the organization through complex environments 

Technology enables CFOs to build robust process architectures and drive process resilience and not just business continuity. It helps them find intelligent solutions for evolving business requirements and make informed decisions in real-time.  

On the basis of technology strength, CFOs can proficiently handle mounting responsibilities, confidently take business risks, and intelligently navigate the enterprise through geopolitically turbulences. 

CFOs can build a digital transformation roadmap, implement the changes in a staggered manner, and monitor the improvements against key process indicators. With the primary goal to drive end-to-end process automation, CFOs can leverage key automation levers – 

1. Unified F&A Platform: End-to-End automation underpinned by a modular architecture is the right approach for adopting a digital paradigm. It offers enterprises the option to re-engineer legacy platforms and automate the P2P, O2C, GL, and R2R functions.
2. Cloud Native environment: It helps businesses to modernize business applications, improve straight-through processing, and build resilience in the process architecture. Containerization and Microservices architecture offers a tremendous impetus to digital transformation. It helps improve business productivity and reduce operational costs.
3. Modern automation stack: Modern technologies, such as Intelligent Automation, AI/ML, workflows, APIs, system integration, middleware, mobile applications, analytics, and visualization enable enterprises to drive end-to-end automation. The modern automation paradigms enable CFOs to adopt enterprise-grade automation at scale, manage, and monitor the processes even during business trips.
4. Data Security and Compliance frameworks: These frameworks offer the right platform that helps the CFO steer their global business operations across uncertain landscapes. It ensures real-time process monitoring, regular testing, and a continuous journey towards business improvement and vendor/customer satisfaction.

Outcomes of a resilient Finance & Accounting function 

1. Improved data accuracy and processing time: Automation and system integration eliminates manual intervention and error. It improves straight through processing and turnaround time for closures. 
2. Data-driven decision making: Analytics and AI/ML enables enterprises to make informed decisions and predictions for steering the enterprise across uncertain landscapes. 
3. Increased revenue: End-to-End automation helps enterprises drive just-in-time production and delivery while cutting costs on warehousing and operations. It ensures vendors/customer ecosystem satisfaction and frees up cash flow. 
4. Process efficiencies: A resilient Finance & Accounting function drives overall process efficiency and operational efficiency. 
5. Scalability & flexibility: Automation and Native Cloud environment offers a scalable framework that enables enterprises handle workload fluctuations. It enables continuous monitoring of the P&L and shift business operations to other shores at short notice to maintain seamless business continuity. 
6. Regulatory compliance: Automated scenarios have inbuilt validations. Similarly, Automation platforms create audit trails that enable enterprises stay audit-ready for handling dynamic regulatory requirements. 
7. Real-time vendor selection: Unified automation platforms help select vendors at short notice and meet specific objectives, such as best price, better lead time, better negotiations, and best payment terms. 
8. Early payment discounts: Automation induces dynamism in processes. It enables early processing of invoices and availing early payment discounts. 
9. Risk identification and prediction: Analytics and AI/ML are a formidable combination. It enables leveraging data for risk prediction, at its best, while steering the enterprise through uncharted landscapes and geopolitical uncertainties. 

Geopolitical complexities have a detrimental effect on business. CFOs have to assume a strategic leadership role in such scenarios and think beyond business continuity. An autonomous Finance & Accounting function offers a crucial operational resilience. End-to-End Automation enables agile closures and provides real-time data for better decision making and gaining predictive intelligence. A resilient Finance & Accounting function gives the CFO the capability to steer the enterprise through geopolitical complexities.