Top Digital Priorities for CFOs in 2020
March 11, 2020
Entering the new decade, you may have heard some chatter about digital trends and how the workplace is evolving – especially within the role of the CFO. According to a recent Forbes article, New Study Underscores The Top Digital Trends Changing The CFO Role Today, a study found that 76% of respondents believe that CFOs drive digital transformation in their business. In addition to the CFO’s traditional duties, such as tracking cash flow and forecasting finances, exploring digital transformation and how to apply these trends to advance internal operations for the organization is becoming a prominent role for the CFO.
How CFOs are Driving Workplace Transformation
CFOs are expecting bold moves for growth in 2020. Research from BDO’s 2020 CFO Outlook Survey predicted that digital transformation will grow 54% within the next year. Here are some of the ways CFOs are prioritizing digital growth:
Increasing automation of manual processes, compliance, and continuous financial reporting
Incorporating real-time data through automation and artificial intelligence has expanded options for service accounting and financial planning.
Introducing AI and automation to perform daily accounting tasks.
If you think incorporating digital advancements into daily business tactics is not the complicated part, you’re wrong – the skill gap of employees is. CFOs are focused on future-proofing their workplace but altering the current workflow of an organization requires previously skilled employees, or adaptable employees, which requires additional training and education.
According to BDO’s 2020 CFO Outlook Survey, labor costs are predicted to increase 21% within the next year and there is an expected shortage of skilled workers of 18%. Additionally, Forbes reports that 83% of employees believe their team currently lacks the skills to make the most of any AI implementation. So, how do you turn this top concern into a productive conversation – by asking the right questions:
Is your company investing in upskilling or reskilling workers to support new digital capabilities or needs?
How are you retaining talent?
Is your company assessing your compensation and benefits strategy in 2020?
Digital transformation cannot be implemented overnight, but using BDO’s 3+1 Approach and knowing what questions to ask will help your organization determine and exceed your goals.
To learn more about the issues, opportunities and strategies of middle market CFOs across 7 key industries, read the full report: 2020 BDO Middle Market CFO Outlook Survey.