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2024: The Year Of Financial Transformation

Mike Whitmire Forbes Councils Member Forbes Finance Council COUNCIL POST | Membership (Fee-Based)

Mar 14, 2024, 07:00am EDT

A former accountant turned cofounder and CEO, Mike Whitmire is the

leader of pre-IPO fintech company, FloQast.

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The workforce is no stranger to trends. 2020 and 2021 saw the rise of

employee well-being and remote work. 2022 was the year of the “great

resignation” and “quiet quitting.” 2023 was all about the rapid growth and

massive popularity of Generative AI. This year could be the year of financial

transformation.

Not only are CFOs beginning to feel the pressure to transform financially,

but employees themselves are eager for financial transformation. Even

further, it’s emerging as a solution for uncovering top-to-bottom company

success. So, let’s break down the core components of financial

transformation and how it can be achieved by organizations.

What Is Financial Transformation?

Financial transformation is the reshaping, rethinking and modernization of

financial processes. Driven by the plethora of new, innovative digital

technologies emerging on the market—like automation, artificial intelligence

and machine learning—financial transformation empowers companies to

unleash employee potential, establish more efficient systems, create a better

company culture and make better business decisions.

Take, for example, AI’s role in helping Orangetheory’s legal team complete a

six-month project in half the time. When the tool was implemented, the

legal team could review and update thousands of contracts quickly and

accurately, saving teams valuable time and money and empowering

employees to focus on other critical tasks, like customer experience and

assistance.

However, it’s more than just embracing the latest technologies. Financial

transformation is a holistic approach that has the potential to drive strategic

change and slingshot accounting and finance into the future.

Why Is Financial Transformation Happening

Now?

Now, more than ever, CFOs are under pressure to transform financially and

do more with less. Primarily due to uncertain economic conditions, many

CFOs are being asked to improve efficiency while lowering costs and driving

growth. Even further, they must do this while staying compliant with ever-

changing regulations. A study from Gartner Inc. found that 62% of CFOs

rank growth in their top three priorities, up from 59% in 2022.

To achieve these goals, do more with less and financially transform their

companies, CFOs are turning to digital solutions more and more. In fact,

93% of CFOs said that more digitization, particularly automation, would

help their companies respond to these pressing economic challenges.

So, now that you know the benefits of financial transformation, you want to

get on board. Where do you start? How do you do it? Part of the answer lies

in technology—and implementing tech tools in the right way.

How Do You Achieve Financial Transformation?

First things first, financial transformation is largely influenced by the tools.

With the right tools in place, companies can reshape and revolutionize the

way their employees are working. But picking the “right tools” can be a

challenge.

To set your employees and the company up for success, take a step back and

look at all of the processes your team performs. How long do they take? How

often are they run? What kind of information is gleaned from these

processes? Can they be done better? This thorough assessment will give you

a better idea of what tools will be most effective and where they should be

implemented.

If the wrong tools are selected, it can heavily impact teams’ productivity and

well-being. A study by our company found that employees who sustain a

“synergistic” or “routine” relationship with their technology have far less

stress and burnout compared to those with “adversarial” relationships. Only

25% of those with “synergistic relationships” reported average to high levels

of burnout, compared to 49% of those with “routine relationships” and 73%

of those with “adversarial relationships.”

However, even if you pick the right tools, they might not be enough to

achieve financial transformation—they must also be implemented in a way

that supports employees and the company’s overarching goals. The key to

ensuring newly introduced tech tools will have a positive impact is

developing a robust plan. This plan should outline the company’s objectives,

goals and the strategies already in place to train employees on these new

solutions. For example, ask questions like “How will these tools help unleash

employee potential?” and “What new information will they gather?”

Additionally, training is critical to proper implementation. Employees must

be on board, engaged and trained to utilize the new technology. Specifically,

it’s important to ensure that the team understands what the software does,

why having it is so important and why you chose this software solution.

A lot can go wrong when integrating new tech into the workplace, and if it’s

not done thoughtfully, it can cause issues and negatively impact employees’

workflows. Once the right tools and processes are implemented correctly,

you’re on the right track toward financial transformation.

Creating A Financially Transformed Future

Building upon the changes we’ve seen transpire in the workforce over the

past several years, the current spotlight is on reshaping and modernizing the

way we work. As a result, financial transformation is taking center stage. But

financial transformation is more than just implementing the latest

technologies, it’s a holistic approach that empowers employees, fosters a

culture of innovation, influences the strategic direction of the company and

reshapes the core of company processes.

So, as business leaders set goals and prepare to take on the new year,

keeping financial transformation top of mind is a surefire way to see

overarching company success.

The information provided here is not investment, tax or financial advice.

You should consult with a licensed professional for advice concerning your

specific situation.

Forbes Finance Council is an invitation-only organization for executives in

successful accounting, financial planning and wealth management firms. Do

I qualify?

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Mike Whitmire

A former accountant turned cofounder and CEO, Mike Whitmire is the leader of pre-IPO

�ntech company, FloQast. Read Mike Whitmire's full… Read More

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