Digital Transformation Skills for Finance Professionals

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Digital transformation (DX) is the use of digital technologies to develop robust and efficient business processes that optimise value for an organisation's stakeholders. While it's certainly true that some industries are engaging with DX more rapidly than others, eventually it will affect employees in every corner of every organisation – especially accountants and finance professionals.

Today's article looks at how DX will change your accounting role, and suggests six skills you will need in the age of digital transformation.

What are the drivers of DX?

Almost all DX is about data. Data creation is growing, with very large quantities (known as big data) becoming available to organisations. The yields of analysing huge amounts of data are potentially enormous – but we need to engage with new technologies that enable us to process it, and that free up people's time to do so.

DX is also being driven by the increasing power and the decreasing size of computers, coupled, of course, with the decreasing cost of computers. And, finally, consumers are driving DX. They are getting used to having technology, and they expect organisations to have it, too.

How will DX affect the role of the finance professional?

Primarily, DX will massively alter (and in some cases, eliminate) finance and accounting processes. A lot of the things that finance professionals do, like making payments, bookkeeping and account creation are being automated. But that doesn't mean we don't need accountants – far from it.

Instead, we are going to see your role change. The job of the accountant or finance professional will become far more to do with adding value to organisations than counting value, which will require you to broaden your skillset beyond your technical expertise.

Below we cover some of the more specific changes DX will bring to your role, and six key competencies you will need to develop as a result.

Six Key Digital Transformation Skills for Finance & Accounting Professionals

1. Application of technologies

DX involves using technologies such as artificial intelligence and robotic process automation to automate processes in areas like invoice payments and bank reconciliation. While some tasks can be completely handed over to machines, others will see technology play only a supporting role and still require human input. Therefore, you must develop the ability to work with technologies that become a part of your processes. But that's not enough. You must also scan the digital horizon to identify evolving technologies that may affect your role in the future.

2. Strategy alignment

It is the role of the board to lead DX and define how it should support the organisation's overall strategy (which it must). But it is then everybody's responsibility to ensure that the technology used is aligned with the wider organisational goals. So, you will need a sound knowledge of your organisation's overall aims, and to make sure that any technologies used by the finance department are helping your business to achieve those aims.

3. Data analytics

We mentioned earlier that DX is being driven by a desire to process large quantities of data. It is likely that you, as accountants, will be the ones who use technological tools to gather and analyse these large amounts of data, and work to better understand what they mean for your organisation. You will therefore need to develop and hone your data analytical skills, and your ability to use analytics tools.

4.Communication and Data Storytelling

Accountants are likely to move more towards becoming business advisors rather than financial record-keepers, as a result of DX. Boards will look to you to provide business insights based on big data collected from across the organisation. You will need to effectively communicate data to technical and non-technical colleagues, and persuade them of the best course of action. To do this, you must be experts in the use of data visualisation tools and leverage the art and science of data storytelling.

5. Collaboration

DX will free you up from the routine, dull and mundane tasks that take up so much of your time, enabling you to add value to your organisation in different areas, one of which is business partnering. To be an effective finance business partner, you will need to be able to liaise and build strong relationships between the wider business and data scientists, to enable and support data-driven decision making across the organisation.

6. Scepticism

Technology is a powerful business tool that will transform your organisation and finance department for the better, but there is often a tendency to trust computers completely, and that can be a risky attitude.

In reality, computers increase accuracy and reduce human errors, but there is little way of knowing whether a computer programme or model – or the data you enter into it – is 100% correct. So, you need to develop scepticism and question your trust in computers. Use technology as a source of enlightenment, but always check results against your experience and common sense.

Ref: Accountingcpd

If you are aspiring to build these skills and competencies in order to elevate your accounting and finance role to the next level of growth, or even planning to orchestrate finance digital transformation project in your organization and looking for consulting and advisory services, feel free to reach out to us and our team of expert trainers and consultants can help you in your transformation journey. For complete details, just visit our website below.

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