By Adam Zoucha

In this article, Adam Zoucha, Senior Vice President of International Sales with FloQast, an Accounting Automation Platform created by accountants for accountants, discusses FloQast’s recent study on financial transformation. Adam highlights the gap emerging between CFOs and accountants in how they view financial transformation. He suggests that for transformation to be truly effective there needs to be collaboration across the entire financial team, incorporating everyone’s requirements and feedback.  

Chief Financial Officers (CFOs) are acutely conscious of the significant advantages that well-executed transformation strategies can bring to the finance department. However, successful transformation is not always easy, and this may be the reason why it isn’t always at the top of the agenda.  

In a recent study Embracing Financial Transformation: What It Is, Why Organisations Should Want It, and How to Achieve It FloQast spoke to over 380 global accounting and finance professionals and found that 60% of accountants and CFOs still do not consider financial transformation a top priority.  

What seems to be the case is that while transformation is not the most important item on the list, it is increasingly being viewed as a strategic necessity amongst leaders. It also seems to resonate with CFO’s more than accountants, who may be more invested in day-to-day tasks. The report found that CFOs are 2.2 times more likely to be aware of transformation than accountants. And, about 90% of accountants have heard of financial transformation, but less than half say they’re very familiar with it. Nonetheless, accounting teams play a crucial role in the effective execution of transformation strategies, highlighting the importance of a holistic and collaborative approach for successful implementation.  

Where do we see the biggest disparity between executives and accounting teams? 

When it comes to disparities in the levels of familiarity with transformation, companies that are scaling up or have recently gone public show the biggest chasm between accountants and CFOs. In contrast, this gap is smaller between startups and public companies. As an organisation grows, it becomes more likely that CFOs have a deeper understanding and commitment to transformation than the finance teams who work with them.  

This isn’t entirely unexpected, given that CFOs are tasked with defining departmental visions and guiding transformation. Nevertheless, it’s a point of concern. To truly realise the benefits of deploying new tech and business processes, both leaders and finance teams need to be on board and make an active contribution. 

What are the challenges that financial teams face? 

To tackle transformation, we need to first acknowledge that these are challenging times for accountants and financial teams as they face increasing workloads and more intricate tasks. Organisations are faced with a scarcity of skilled professionals alongside attracting and retaining exceptional talent.  

Another hurdle that organisations face is data. Data and reports are one of the most vital outputs of accounting teams, and it is this material that often serves as a chief vehicle in the decision-making process. Despite data becoming more accessible, the challenge remains the quality and therefore reliability of the data.  This is corroborated by the report that finds that of those respondents with financial transformation initiatives underway, 45% consider centralised data to be a key component. 

Indeed, this is where innovation in technology becomes a game changer, particularly labour-saving innovations such as automation and AI, which have the proven ability to increase accuracy, reduce delays and improve productivity.  

Why are accounting teams vital to transformation initiatives?  

Part of the CFO’s responsibility is to steer their department in the most successful direction, which involves deciding which new tech is needed and how to deploy it. Accountants are instrumental in ensuring that this transition proceeds seamlessly and effectively as they are the ones using the tech daily.  

Despite not being as versed in digital transformation as CFOs, accountants have deep insight into what tech works best and where it can save time and trouble. Many have had to devise creative solutions to circumvent tech constraints and improvise processes to enhance their team’s performance. 

They understand why data should be accessible and easy to use – as well as what types of data should be available. They also know how to translate that data into intelligence, that can drive better business decisions.  

Fundamentally, accountants are experts in their field, and digital transformation seeks to enhance their capabilities. Thus, it is paramount to get accounting and finance teams on board when rolling out new tech. As the primary users, they are uniquely qualified to select and implement the appropriate technologies. When accountants are engaged, genuine and effective transformation can be realised, yielding benefits that extend throughout the organisation and beyond. 

How to create a blueprint for transformation? 

A successful digital transformation hinges on assertive, clear-headed leadership coupled with a grasp of how technological advancements and process improvements can optimise the organisation.  

To craft a successful blueprint for transformation, CFOs need to incorporate the insights of their teams to maintain both a competitive edge and adherence to regulations in the dynamic and rapidly evolving business world. Collaboration is key; collaboration throughout the transformation process can harness practical insights to support departmental goals, leading to meaningful improvements in efficiency, culture, and decision-making.  

Achieving a successful transformation is not easy, and without close alignment between CFOs and accountancy teams the potential of digital transformation will be limited. Therefore, bridging this gap should be a top priority for leaders who aim to maximise benefits when deploying new technology. 

About the Author

Adam Zoucha is SVP of International Sales and Managing Director of EMEA for FloQast, an Accounting Automation Platform created by accountants for accountants which utilises the latest advancements in AI technology to manage aspects of the close, reduce compliance burden, stay audit-ready, and improve accuracy, visibility, and collaboration overall. A former auditor, Adam’s first-hand experience of the accounting sector means he understands the challenges accounting teams face every day.  

He worked in the audit practice at Deloitte & Touche in San Francisco and has a bachelor’s degree in business Entrepreneurship and a master’s degree in accounting from the University of Southern California.