# The changing role of today’s CFO Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-10-30 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Future of Finance: Tech-Savvy CFOs Leading Digital Meta Description: Learn why financial leaders need to embrace tech-savvy skills such as predictive analytics and automation for future success at Redwood Software. URL: https://financedigest.com/the-changing-role-of-todays-cfohtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/economy-recovery-13-1736838747590-compressed.jpg) _By **Neil Kinson,** Chief of Staff, at Redwood Software_ Financial leaders are increasingly required to become more tech-savvy. In fact, they are expected to be at the forefront of digital transformation. However, at [Redwood](https://www.redwood.com/) Software, we’ve observed a notable gap between the existing skills and what financial teams see as vital for their profession in the future. Instead of praising abilities which are usually associated with accountancy, such as precision, numeracy and accuracy, the desired skills will centre [around more strategic and forecasting](https://www.financedigest.com/industrial-carbon-dioxide-market-is-estimated-to-expand-at-a-cagr-of-around-3-over-the-forecast-period-of-2021-2031.html "Industrial Carbon Dioxide Market is estimated to expand at a CAGR of around 3% over the forecast period of 2021-2031") thinking. Immense amounts of data, lack of [time](https://www.financedigest.com/why-the-time-is-right-for-finance-to-embrace-digital-change.html "Why the time is right for finance to embrace digital change") and resources add more long-term pressure on financial teams. As a result, it is clear that re-skilling, shifting focus towards predictive analytics as well the use of [automation are key enablers for future success](https://www.financedigest.com/is-automation-key-to-esg-success-in-the-banking-and-finance-sector.html "Is automation key to ESG success in the banking and finance sector?"). With vast technological advances impacting the role of the today’s CFO, what does the [future hold](https://www.financedigest.com/what-does-the-future-hold-for-uk-smes.html "What does the future hold for UK SMEs?")? **Technology to help CFOs, not hinder** The role is undergoing perhaps its greatest change in recent history, with fundamental changes in how the CFO must now [operate in order to be considered](https://www.financedigest.com/europes-wizz-air-considering-a-saudi-operating-license.html "Europe’s Wizz Air considering a Saudi operating license") effective. The list of responsibilities CFOs are tasked with are also overwhelming. They need to create value, contribute to the strategic vision of their organisation, predict the future — all while navigating a volatile [global economy](https://www.financedigest.com/stanchart-sees-asia-middle-east-as-bright-spots-in-weak-global-economy.html "StanChart sees Asia, Middle East as bright spots in weak global economy") fraught with uncertainty. Each decision made is vital to the organisation and for the CFOs’ future. With such pressures, technology has often been considered a hinderance, requiring financial professionals to [develop technical skills that are not directly relevant to the value they add to the business](https://www.financedigest.com/covid-19-makes-the-case-for-technology-and-automation-for-business-development-in-professional-services.html "Covid-19 Makes the Case for Technology and Automation for Business Development in Professional Services"). [Finance professionals have been forced to plug the gaps in the technologies they use to meet the requirements of the 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") they need. Being tech-savvy is a requirement for any professional, but being an Excel whizz and knowing Enterprise Resource Planning (ERP) tools used to be enough, increasingly CFOs need to be experts in everything from scripting to [Artificial Intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "Artificial Intelligence") (AI) and all points in between. All too often the wider [finance teams](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") have to force fit their process requirements to the capability of the tools they are offered, rather than having a tool that natively supports the problems they face. The finance team often has more information about customer behaviour, [market trends](https://www.financedigest.com/plug-in-hybrid-electric-vehicles-phev-market-trends-growth-future-demand-analysis-and-forecast-by-2026.html "Plug-in Hybrid Electric Vehicles (PHEV) Market Trends, Growth, Future Demand, Analysis and Forecast by 2026") and usage patterns that customer facing parts of the organisation do. However, the finance side don’t see the same investment in technology to aggregate and exploit this information. **[Strategy backed](https://www.financedigest.com/three-strategies-for-beating-back-imposter-syndrome.html "Three Strategies For Beating Back Imposter Syndrome ") by data** In the future, data scientists will play an increasing role in the skills mix within the finance function, whereby [businesses who can apply automation at a process](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") level rather than simply as an optimisation of tasks will prevail. The CFO role is strategic, but has been focused understandably on the immediate financial health of the [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?"), and compliance with accounting and regulatory obligations. This has left little room and capacity to advise the business, and to [provide the data](https://www.financedigest.com/comparative-analysis-of-the-best-data-room-providers.html "Comparative Analysis of the Best Data Room Providers") necessary to do so, not just governing those happening today. Given the need with Covid-19 to rightly [focus on cost](https://www.financedigest.com/cost-of-living-in-focus-as-australias-election-race-hits-final-stretch.html "Cost of living in focus as Australia’s election race hits final stretch") control, cash management and short-term financial health, it is a real risk that the role of the CFO regresses rather than becoming the catalyst for future success that it can be. The [rules and principles by which Accounting](https://www.financedigest.com/lebanese-bank-closes-over-30-british-held-accounts-after-uk-ruling-depositors-group.html "Lebanese bank closes over 30 British-held accounts after UK ruling-depositors’ group") is governed, are on the whole globally recognised. This makes them excellent candidates for automation, and while AI can play a role in certain areas (document capture, [data analytics](https://www.financedigest.com/top-5-data-analytics-trends-for-2023.html "Top 5 Data Analytics Trends for 2023") and many more) it is not the complexity of the work that presents challenges for the teams, it is the simple volume of manual work and the errors that manual work introduces. Processes that present [today’s skilled](https://www.financedigest.com/fine-tuning-your-money-management-skills-today.html "Fine-tuning your money management skills today") finance professionals with the information they need to apply their thoughts, knowledge and cognition are not possible today without AI and automation. In turn, these processes can then be enriched with AI tools that generally excel and analysing large volumes of information that a human would not be capable of – for [example which transactions follow](https://www.financedigest.com/king-charles-in-parliament-promises-to-follow-queens-example.html "King Charles, in parliament, promises to follow queen’s example") suspicious patterns that could indicate fraud? As such, automation will empower CFO’s and finance professionals in general to focus on what they trained to do, to invest their [time and energy in advising the business](https://www.financedigest.com/cfos-its-time-to-own-the-business-model.html "CFOs: It’s time to own the business model") on how to grow or improve, rather than simply being the enforcer of the roles and ensuring compliance. Most organisations recognise that they [spend 80% of their time](https://www.financedigest.com/its-time-for-banks-to-spend-on-digital-mortgage-journeys.html "It’s time for banks to spend on digital mortgage journeys") just getting the numbers right – even that is a challenge – and 20% or less analysing what those numbers tell them. [Finance is ripe for change](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"), and so too is the role of today’s CFO. By seeking opportunities to transform the finance function using automation and other enablers, businesses will ensure they are [building resilience](https://www.financedigest.com/building-economic-resilience-in-tough-times.html "Building Economic Resilience in Tough Times") and preparing for tomorrow. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---