Whether you’re a CFO or a financial controller, you know how much time and effort you and your team spend deep in concentration to get your monthly accounting figures to balance. Your accounts payable and accounts receivable work doesn’t get much attention unless things go wrong, but all the time you need to stay on top of your tasks to keep things running smoothly.
Accounting has traditionally been a backwards looking profession. Let me be clear that I did not just call accountants backwards people, but in general their mandate has been to document, audit and verify what has already happened.However, things are changing rapidly in the world of accounting. As I covered in a recent blog post on The Changing Role of the CFO, there is a major shift toward broader and more forward-looking responsibilities within the Office of the CFO and the accounting profession in general.
Some of the forces helping make these changes a reality are enterprise-wide integration of advanced analytics, unifying financial information in a single-source-of-truth, movement toward continuous-close processes and the rise of Machine Learning.
Today’s CFO is bombarded with buzzwords and talk about the latest and greatest trends in corporate finance. The typical finance professional is usually occupied with more practical considerations. Buzzwords aren’t high on the agenda when some new regulatory control is fighting for your attention or you’re busy keeping an eye on the bottom line.
Still, those buzzwords and trends persist. It’s little wonder that finance pros are confused by it all.
Here are a few such terms you might have heard of:
- Predictive accounting – using accounting to predict revenue.
- Machine learning in finance and accounting.
- Robotic Process Automation (RPA).
It’s natural to ask whether any of this matters. Is it worth devoting mental bandwidth to these new trends?
This post is a summary of why I think these trends may be relevant to you, and how getting onboard now can help you add long-term value to your organization.
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