# Finance transformation with analytics
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-01-08
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Unlock the Benefits of Finance Transformation with Analytics
Meta Description: Discover the benefits of adopting analytics to ensure a successful finance transformation. Align your finance strategy with business needs and focus on
URL: https://financedigest.com/finance-transformation-with-analyticshtml

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By **Laura Timms,** Product Strategy Manager, MHR Analytics

Finance transformation is all about improving the overall value that finance provides, but with finance teams under increasing pressure to do more with less, this is something that is becoming increasingly difficult.

![Laura Timms](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/laura-timms-1-450x299-1736838963214-compressed.jpg)

Laura Timms

It’s estimated that 81% of [finance teams are currently undergoing finance transformation](https://www.financedigest.com/world-class-finance-digital-transformation-and-analytics-based-decision-making-among-key-imperatives-for-creating-finance-agility.html "World-Class Finance: Digital Transformation and Analytics-Based Decision Making Among Key Imperatives for Creating Finance Agility"), yet research by Gartner reveals that seven out of 10 finance transformations fail.

This article, based on the new [finance analytics guide from MHR Analytics](https://www.mhranalytics.com/the-ultimate-finance-analytics-guide/), will reveal the benefits of adopting analytics to supercharge your efforts and help ensure that your finance transformation is a successful one.

**Finance strategy that’s aligned with [future business](https://www.financedigest.com/surgical-equipment-market-high-trend-opportunities-offers-future-business-growth-by-2030.html "Surgical Equipment Market High Trend Opportunities Offers Future Business Growth by 2030") needs**

Transformation is more than simply hitting a financial goal. It’s about being able to respond to the current and future needs of the organisation – something that can only be achieved when [finance is connected to the wider business](https://www.financedigest.com/is-it-risky-to-use-bridging-finance-for-my-business.html "Is it risky to use bridging finance for my business?").

Unfortunately, with all of the demand that finance teams receive, it can be easy to fail to recognise how financial [activity translates into everyday business](https://www.financedigest.com/euro-zone-business-activity-contracted-again-in-august-pmi.html "Euro zone business activity contracted again in August -PMI").

This can lead teams working introspectively, which can quickly translate into silos, with poor communication of information, lower levels productivity and consequently a less valuable [finance team](https://www.financedigest.com/protecting-the-finance-team-from-burnout-to-drive-employee-retention.html "Protecting the finance team from burnout to drive employee retention").

To prevent this from happening, the financial [strategy needs to be aligned with activity across the business](https://www.financedigest.com/albumin-market-in-depth-analysis-business-strategies-and-growth-rate.html "Albumin Market In-depth Analysis, Business Strategies, and Growth Rate"), and analytics provides the platform to do exactly that.

Using a data warehouse, data from across the organisation can be synced to give [finance teams real-time insights into how changes in one area](https://www.financedigest.com/4-areas-of-finance-you-should-be-watching.html "4 Areas of Finance You Should Be Watching") of the business will impact the course of action they take.

This means that [finance teams are able to steer away from getting caught up in metrics like historical spend and industry](https://www.financedigest.com/future-of-the-finance-industry.html "Future of the Finance Industry") benchmarks, and are instead grounded in how the finance strategy relates to the unique needs of their business.

1. **Focus on high-value tasks**

According to [Gartner](https://emtemp.gcom.cloud/ngw/globalassets/en/finance/documents/trends/cfo-journal-new-digital-workforce.pdf), 56% of companies are in the evaluation phase of adopting AI to automate accounting & finance processes. By 2020 it’s estimated that 31% of [companies will have actually implemented](https://www.financedigest.com/why-are-companies-implementing-crypto-payments.html "Why are companies implementing crypto payments?") this into their business and 26% in “operating” mode, where AI is actively used in accounting & finance processes.

But what does this mean for finance transformation?

Well, AI [technology is providing a platform that is changing the role of finance](https://www.financedigest.com/how-advanced-self-service-technologies-are-changing-the-face-of-finance.html "How Advanced Self-Service Technologies are Changing the Face of Finance") teams at a rapid pace. Through [automating tedious financial processes](https://www.financedigest.com/what-businesses-can-achieve-with-microsofts-full-suite-of-process-automation-tools.html "What businesses can achieve with Microsoft’s full suite of process automation tools"), finance teams no longer have to spend their time buried in spreadsheets.

Everything from cash disbursement, revenue management and general accounting could be automated through leveraging analytics – in fact, it’s estimated that up to [40% of financial activity could be automated, and another 17% mostly automated](https://www.mckinsey.com/business-functions/operations/our-insights/new-technology-new-rules-reimagining-the-modern-finance-workforce).

[Research](https://emtemp.gcom.cloud/ngw/globalassets/en/finance/documents/trends/cfo-journal-new-digital-workforce.pdf) goes on to reveal that for an accounting team with 40 full-time employees, with an average salary of £60,000 would save around 25,000 hours and nearly £72,000 that would have otherwise been wasted on team members carrying out repetitive tasks.

This time [saved](https://www.financedigest.com/how-cloud-computing-saves-businesses-money.html "How cloud computing saves businesses money") can instead be spent on higher-value tasks that facilitate business transformation and allow finance to act as a trusted strategic partner to the business.

2. **Understand where to allocate resources**

Sometimes it can feel like finance are caught in the middle, with demands left, right and centre of the business. And with eloquent justifications from each department explaining why their project should be prioritised, it can leave [finance teams](https://www.financedigest.com/finance-teams-using-ai-outperform-peers-as-demand-for-skills-grows.html "Finance Teams Using AI Outperform Peers as Demand for Skills Grows") stretched under the pressure to please everyone.

Analytics [works to hand back the power to finance](https://www.financedigest.com/making-sure-you-are-compliant-when-working-in-the-finance-industry.html "Making Sure You Are Compliant When Working in the Finance Industry") teams.

Through interactive dashboards that [display performance across the business](https://www.financedigest.com/software-to-display-your-businesss-important-information.html "Software to Display Your Business’s Important Information"), finance teams are able to easily identify the key value drivers of financial growth.

This means that they’re able to present stakeholders with “the facts” and justify financial activity, only spending resources on activities that generate the most financial value, whilst [cutting unnecessary costs](https://www.financedigest.com/trend-micro-vision-one-stops-threats-faster-streamlines-operations-and-cuts-costs.html "Trend Micro Vision One Stops Threats Faster, Streamlines Operations and Cuts Costs").

On top of this, [finance teams can look internally to see what they’re spending their own time](https://www.financedigest.com/time-to-act-as-cybercriminals-hot-on-the-heels-of-finance-sector.html "Time to act as cybercriminals hot on the heels of finance sector") and resources on. This can help them to define their list of roles and responsibilities as a department to ensure that they don’t get caught up in low-value tasks.

3. **Make faster, more reliable decisions**

At the core of any finance transformation is the need to adapt finance practices to [meet increasing business demand](https://www.financedigest.com/how-can-businesses-digitalise-supply-chains-to-meet-demand.html "How can businesses digitalise supply chains to meet demand?").

Despite this, many [finance teams are still relying on outdated methods to carry out financial processes](https://www.financedigest.com/gary-mcgaghey-explains-how-cfos-can-strengthen-decision-making-processes-and-reimagine-the-finance-model.html "Gary McGaghey Explains How CFOs Can Strengthen Decision-Making Processes and Reimagine the Finance Model").

Relying on spreadsheets to communicate and understand what’s going on in the wider business is a common theme amongst finance, but using manual methods alone leaves room for [human error](https://www.financedigest.com/outthink-raises-10-million-to-tackle-human-errors-behind-data-breaches.html "OutThink raises million to tackle human errors behind data breaches").  In fact, research shows that [nearly 90% of spreadsheets contain](https://www.financedigest.com/demand-for-5-gal-safety-portable-fuel-containers-is-projected-to-record-a-cagr-of-nearly-4-0-through-2028.html "Demand for 5 Gal. Safety Portable Fuel Containers Is Projected to Record a CAGR of Nearly 4.0% through 2028") errors, and this can make it tricky to make decisions with confidence.

This [approach also means that teams are often forced to spend hours analysing data](https://www.financedigest.com/how-finance-firms-can-unify-two-data-approaches-to-improve-both-compliance-and-security.html "How finance firms can unify two data approaches to improve both compliance and security") and pulling reports. This can lead to lags in getting all-important insights, which delays decision making and can result in “in hindsight” discussions with stakeholders.

Analytics works to streamline financial [processes](https://www.financedigest.com/how-decentralized-finance-can-aid-in-the-acquisition-process.html "How Decentralized Finance can aid in the acquisition process") to provide teams with fast and accurate insights at the touch of a button. Through real-time data and automation of once tedious processes, teams can [see bumps in the road way in advance](https://www.financedigest.com/the-protective-cultures-market-to-see-through-explicit-advancements.html "The Protective Cultures Market To See Through Explicit Advancements") and have greater confidence in their decisions.


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