How the Role of Financial Managers is Changing

Our world of finance is changing, and we see this impacting financial managers like yourself in ways that go far beyond traditional expectations. Gone are the days when accounting was solely about managing the books and ensuring regulatory compliance.

The role of finance managers is evolving in favor of a much more involved and proactive function —financial managers are essential strategic leaders positioned to play a major role in shaping the organizational strategy at all levels of the business.

The modern business environment demands more from its leaders, constantly creating new opportunities and growing expectations. From the back office to the boardroom, how you work is moving beyond crunching numbers, managing cash flow, and overseeing compliance; now, you’re expected to be a part of decisions that can make or break a business.

Key Factors Driving the Change for Finance Managers

As strategic advisors, you must guide your organization to make profitable decisions. This is your moment to step into a true leadership role, being a catalyst for change by driving new initiatives and engaging in value creation.

Here are some of the key factors driving this change over the past decade:

  • Technological Advancements. Think about it: computers used to fill an entire room. Now, we have smartphones that can do more than our ancestors could have ever imagined. Financial software has revolutionized our work, freeing up time for more strategic tasks.
  • Globalization. Businesses that operate globally face complex challenges like currency fluctuations and international accounting standards. With emerging multi-entity functionalities such as zero-effort currency calculations, automated global consolidations, and daily reporting insights, accounting teams are better equipped to handle these complexities.
  • Increased Regulatory Compliance. With stricter regulations, organizations are adapting to a more complex and demanding regulatory environment. Finance managers must be on top of their game to ensure compliance and avoid costly penalties.
  • Data-Driven Decision-Making. We are constantly drowning in data, looking to make sense of the numbers and uncover their real meaning. The need for data-driven decisions has never been more critical. Finance managers who can turn this data into actionable insights are invaluable to their organizations.

Moving Forward and Embracing Change in Finance

So, what does this mean for financial managers, and how do we move forward? To thrive in this evolving landscape, you must:

  • Embrace Technology. Get comfortable with new and improved financial software and data analytics tools. They’re your secret weapons that can significantly impact your organization’s success.
  • Develop Strategic Thinking. Move beyond the numbers and understand the big picture. How does your financial performance impact the overall business strategy?
  • Build Relationships. Work with other departments to foster a culture of collaboration and drive positive outcomes. Be a strategic partner to teams across the organization by sharing actionable insights that inform your operational and financial decisions, boosting performance and operational efficiency.
  • Stay in Shape. Stay updated with new tools or features to make the most of your time and identify emerging opportunities for your organization. Keep learning and stay informed about industry trends and best practices.

The Impact of Technology and Automation

There is a major push toward digital transformation, which allows us to move from reactive financial management to a more proactive and strategic role. Financial managers now have the tools to automate routine tasks like reconciliations, expense tracking, and invoicing, along with better interfaces and API connections that ensure finance is fully integrated into business-wide decisions.

According to a 2022 Gartner survey, 82% of CFOs reported that they are prioritizing investments in digital transformation over other areas like talent, supply chain, business services, and fixed assets. Artificial intelligence, machine learning, and robotic process automation are also being incorporated into our day-to-day financial processes, freeing up time otherwise spent on administrative tasks.

Here are some of the benefits of adapting to digitized data and new financial tech:

  • Productivity and Efficiency
  • Improved Customer Satisfaction
  • Greater Transparency
  • Improved Data Security
  • Better Agility
  • Business Resilience
  • Better Risk Management
  • Scalability and Flexibility
  • Cost Savings

Adopting advanced financial management tools like Sage Intacct has been a key enabler in this transformation, providing us with real-time data, predictive analytics, and customizable dashboards —all necessary to excel in this new role.

Partnering with DWD for Strategic Growth

The evolution of finance managers is more than a shift in the job description; it is a fundamental change in how financial management is perceived and executed. We must embrace change, adapt to new challenges, and commit to ongoing professional development. Think of yourself as more than just a gatekeeper of financial data but the architect of your organization’s future.

DWD Technology Group can be a valuable partner as you adjust to this new role. By automating repetitive tasks and helping implement proven systems, DWD helps finance managers free up time to focus on higher-value activities.

For more information on our financial management solutions and to get a free software assessment, contact us today!