The strategic advisory component of the finance function is paramount for organisations to stay competitive, but technology shortfalls are overloading teams and cutting into the time needed for high-value work, according to a survey of more than 900 finance and accounting leaders.
A high percentage of leaders are expected to serve as strategic advisers, but for many in that group, strategic thinking time is consumed by tasks that can’t be automated, a survey by Zuora, a US software development company, found.
“Every single leader” in the survey — from respondents in the UK, France, and North America — reported that manual data issues held their teams back from strategic work. For 42% of leaders, manual burdens create a constant drain on their strategic capacity.
Automation is struggling to keep up with business demands. Respondents said that outdated systems are intensifying the burden of manual tasks, impairing their ability to lead effectively, the survey said. Even in software-as-a-service (SaaS) companies, over half of leaders (54%) ranked their organisation’s technology gaps as “severe” fundamental impediments that perpetuate the cycle of manual work dependency.
Technology investments that free up teams by reducing manual workloads are key to enabling finance leaders as strategic advisers, and such investments need to be evaluated through that lens rather than viewed as operational upgrades by organisations, the survey said.
Consequently, many finance leaders are not fully realising the benefits of artificial intelligence (AI) solutions. While a majority of finance leaders say AI investments are a central focus (93% across industries, 88% in SaaS), many cite data reconciliation (88%, 79% in SaaS) and manual workloads (79%, 97% in SaaS) as strategic barriers and strains on team resources.
“AI is a strategic priority in both technology and skillsets [89% of leaders report that AI solutions are already part of their current technology stack] — but its impact has yet to fully materialise,” the survey said. “Finance teams are investing in tomorrow while drowning in yesterday’s work.”
In some areas, ambition exceeds technology’s capabilities. For finance teams, automated systems can’t support the complex pricing structures businesses are using to stay competitive (74%, 97% in SaaS companies). Nearly two-thirds (64%) of finance leaders across industries say this mix of revenue models has added substantial complexity to their operations.
Finance teams, according to the survey, require resources to explore and experiment with AI tools on past projects, allowing organisations to measure impact and refine processes before full deployment into active workflows.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
