Finance Function Trends
Determine trends and innovation in the finance function within banking organizations or other industries. Obtain also case studies on innovations in finance functions and best-in-class examples in these departments.
Finance Function Trends
Emergence of the Finance Factory
- Daily financial operations processes that involve payments, invoicing, treasury exchanges, ledgers, capital expenses, and the closing cycle will start to be handled in central shared service departments or "finance factories."
- The finance factory will be the one to deal with the core finance operations.
- The factory will also link to finance centers of excellence and outsourcing companies using a hub-and-spoke organization structure.
- Under the factory setup, employees will have no need for paper and will just access cloud-based apps on smart devices to perform financial transactions.
- Behind the screen, a highly standardized, streamlined, and workflow-based operation will do the hard part of the process.
- Automatic controls and intuitive process tracking process will monitor the core.
- Performance monitoring is also in place to reduce rework.
- Finance managers will get an event-induced and real-time reports based on innovative integration tools.
- Soft closing will now need to be made daily and will be enabled by "visual close management tools, integrated sub-ledgers, daily time capture, journal workflows, reconciliation tools, as well as automation of consolidation, foreign exchange, allocation and intercompany transfers."
- Finance departments can now perform simulations to get a taste of pre-close outcomes.
- They can also provide support for the ongoing build of the management discussion and analysis (MD&A) in every step of the closing process.
- Another trend in the finance function space is on the increasing reliance of this division on mid-level managers who are more focused on developing the function's strategy.
- However, this will result in the elimination of lower level employees in the finance function.
- This was made possible by the application of technologies such as robotic process automation (RPA) which will take over the number-crunching jobs of these employees.
- With this, finance functions will evolve into a diamond-shaped structure.
- This new structure will place more importance on skills in data analysis, financial modeling, and communication instead of core accounting expertise
- The role of the financial function will also evolve further from just generating financial statements in the past.
- In today's business environment, the function will need to collaborate more with key stakeholders such as investors and the business leaders of the company.
- This is to ensure that the finance function will also be aligned with the strategic business objectives of the company and the company value will reach the highest possible level.
Proprietary Database Search Results
In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals.
Proposed next steps:
You need to be the project owner to select a next step.