AI and the Finance department.

10 reasons your finance department should consider a data science-backed intelligent solution?

You can’t escape articles about artificial intelligence, or AI. It’s fast becoming the thing that everyone is talking about – and worrying about. But, in the context of your finance department, is AI actually something you should embrace? We think so – in fact, we know you can do it without compromising your finance team, and without unnecessary disruption.?

We talk about ‘augmented intelligence’ rather than artificial intelligence. Our experience is that smart technology exists to make human life easier – not to replace it. And so we look for ways AI can assist organisations – not threaten them.?

What challenges are your finance department facing today??

We’ve talked to – and worked with – lots of CFOs who want to deliver faster, more accurate business insights. And from those conversations, we know that business leaders know they need to do something different – they are just not sure where to start. This has helped us to identify 10 common triggers for change.?

If you recognise one of these as being applicable to your business, you should consider how you can improve your data gathering, analysis, reporting and insights. If you recognise more than one, you definitely need to act sooner rather than later.?

Trigger #1 – Frequent forecasting and planning processes?

Forecasting is one of the central cogs in the wheel of a successful business. But it’s only as useful as the data it’s based on. If you know you need to improve the basis for your quarterly forecasts, rolling forecasts, and budgets with multiple versions, you need to start with the data that informs your business insights.?

Trigger #2 – Recent compliance or audit failure?

If your business has recently fallen foul of compliance or audit rules, you need to reassess your systems and processes quickly.?

Trigger #3 – Long period end processes?

If you are struggling to meet internal or external shareholder reporting requirements for each quarter, half year or full year, this is a key trigger for change.?

Trigger #4 – Managing cash and sales rolling forecasting?

What’s the point of forecasting if your data is incomplete or it takes so long to put the forecast together that it’s out of date as soon as it’s produced? If your team is stressed because your current systems don’t support the forecasting you need to do, it’s time to face the fact that you need to improve. ?

Trigger #5 – Cost optimisation?

Cost optimisation is not always as simple as increasing prices and reducing headcount. Better data could help you see where individual product margins could be improved; where your estate could be managed more productively or where late payers are impacting your success. Why miss out on those opportunities??

Trigger #6 – Trading across borders?

Trading across borders brings financial complexity. Your organisation needs to manage pricing, currencies and market conditions – and be responsive to changes across all areas.?

Trigger #7 – Meeting compliance and audit requirements?

All companies require auditing. If you also work in a regulated environment, it’s vital that you have access to up-to-date data and insights to allow your reporting to be as accurate as possible.?

Trigger #8 – High receivables and challenges to predict or plan collections?

If you have high receivables in relation to cash in hand, you need to be in a better position to predict collections and customer behaviour. This will help you to balance your accounts more successfully, thereby improving cash flow and influencing future product or service planning. ?

Trigger #9 – Tracking covenants and operational exceptions?

What if you could establish and track your KPIs and covenants using real-time data and with the ability to scenario plan to take market, currency and economic factors into account? Using augmented intelligence could transform the way you do business. ?

Trigger #10 – Digital transformation?

For complex businesses, digital transformation is both essential and incredibly complicated. If your business is in the process of digital transformation – or is considering getting underway – sorting your financial department systems out first is critical. Having poor finance department systems or processes could hold up your entire transformation.?

Augmented intelligence can help your team with all these issues – and more. Think of it as a tool to drive your commercial success, supporting your people to improve their work-life balance while delivering exceptional insights to your organisation. Now’s the time to invest in making better business decisions, faster!

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