By Lyle Solomon is a CalBar-registered consumer finance attorney currently working as a lead attorney at Oak View Law Group.
The need is growing for CFOs and accounting teams to be more inventive and strategic. Since there are now technologies that make manual financial tasks unnecessary, senior executives don’t want to waste time on tedious, repetitive work. The use of conventional accounting and financial procedures is also deteriorating. As a result, finance leaders who continue to use clunky, outdated technologies that are slow and prone to human error put their business at risk. CFOs and financial executives know that their reputation depends on their ability to design and execute the plans that will drive the success of the company. They also realize that their time should be spent working with a high return on investment. They need to be innovative and ready for the future. They no longer have the luxury of being distracted from strategy implementation, money management, customer interaction, and other value-creating activities through financial reporting and other tasks.
Finance and accounting
The future of finance and accounting is all about outsourcing, as it is a solution that helps reduce operating expenses while being supported by top finance talent and the experience of knowledgeable accounting professionals. In addition, you benefit from its state-of-the-art digital financial solutions. Giving control of your department to a finance-as-a-service provider doesn’t mean outsourcing your accounting. When done right, outsourcing means acquiring a strategic partner that complements your current finance staff and bridges any operational gaps. You benefit from the experience, skills, and cutting-edge technologies of your team, who will most likely be using the cloud. As a result, there is more adaptability and better enterprise scalability.
Technology is transforming finance.
AI/ML, RPA, advanced data analytics, and cloud-based infrastructures are transforming banking. Embracing these technologies means recognizing the future of accounting and finance, not just adopting innovative solutions. As AI and ML evolve, their applications in banking are increasing. AI and ML automate and understand financial activities through data analytics, algorithms, and pattern recognition. Today, technology detects fraud and automates tax accounting, reconciliations, and accounts payable. Technology improves FP&A, risk management and regulatory compliance. Before RPA, transactions required human reporting and data entry. It forced accounting clerks to perform repetitive tasks that were tedious, error-prone, and duplicative. RPA can automate accounting tasks in numerous systems. The workforce can focus on strategic duties saving time and energy on accounting. Data and business analytics inform growth initiatives. Analytical skills improve financial planning, forecasting, and opportunity recognition.
Financial analysis helps a corporation assess its business performance and financial health in order to plan and manage investments. Financial leadership uses historical data to identify strengths, weaknesses, and waste. Data and analytics have helped financial services make better investment decisions and navigate regulatory and competitive challenges. Cloud computing is not new, but many traditional business owners find it disruptive and risky. Digital transformation requires the use of the cloud. The cloud improves application speed, agility, cost management, innovation, and resiliency compared to traditional IT infrastructure. Digitization is transforming the way people connect and do business, and banking technology is influencing the future of financial services around the world. The appetite of Millennials and Gen Zers for digital banking is disrupting the industry. From retail and mobile banking to startups, technology touches nearly every element of the banking business and will continue to digitize banking. Retail banking, sometimes called consumer banking, includes checking and savings accounts, credit and debit cards, and loans. Growing consumer demand for digital financial services has led to a rise in new banking technologies that are redefining retail banking.
Author Bio: Lyle Solomon has a legal background, as well as writing and consumer finance experience. He has been a member of the California State Bar since 2003. He graduated from Pacific University McGeorge School of Law in Sacramento, California in 1998 and currently works for the Oak View Law Group in California as a senior attorney.