CFOs should allocate 10% of their resources to automation and AI

Caught between the simple environments of small businesses and large corporations with abundant IT and digital transformation resources, CFOs of mid-sized companies face unique challenges. With multiple entities, business models, and international operations, daily management becomes a balancing act between efficiency and strategy.

The Importance of Automation in Mid-Sized Companies

Mid-sized companies are often in a phase of active growth, whether organic or through acquisitions. This development phase requires flexible and precise financial management. However, finance teams can be overwhelmed by repetitive, time-consuming, and low-value tasks. Automation and artificial intelligence (AI) thus become strategic levers to free up time and resources.

Tasks to Automate

Here are some examples of processes that automation can transform:

• Cash Management: Automating the daily tracking of bank balances provides a clear and real-time view of cash positions.
• Transaction Categorisation: The automatic categorisation of bank transactions facilitates their reconciliation with corresponding invoices.
• Financial Forecasting: Automating cash flow forecasts from forecast income statements or scenarios based on historical data eliminates hours of manual work.
• Reporting: Using templates for standardised reporting reduces errors and streamlines the process.

The Benefits of AI and Automation

Integrating AI into financial processes can transform the finance department into a true strategic partner for the company. By reducing the time spent on administrative tasks, teams can focus on higher-value activities such as:

• Customer Relationship Management: Optimising the time spent on customer follow-up and improving cash inflows. For example, Guillaume Schaeffer from GPG Granit automated the reporting of his bank account balances, saving 30 minutes per day, which were reallocated to managing unpaid invoices, resulting in a reduction of DSO.

• Negotiation and Cost Optimisation: Reallocating the time saved to renegotiate contracts or launch cost-reduction initiatives.

• Exploring New Growth Opportunities: Studying possibilities for external growth or diversification.

Why 10% of Resources? The reference to dedicating 10% of financial resources to automation is not arbitrary. This figure, recommended by the Chief Accounting Officer of Intuit, represents a judicious and realistic investment that allows for significant digital transformation without compromising ongoing operations. This level of investment enables the implementation of automation solutions that generate measurable productivity gains and continuous improvements in financial processes.

Intuit is a giant whose sales continue to grow by 15 to 20% per year. If your growth is faster, you will likely need to allocate more resources to creating and automating processes. Especially since you will probably face a number of new situations: setting up entities in other countries, opening capital to new shareholders, external growth operations, etc.

Conclusion

In summary, for CFOs of mid-sized companies, allocating 10% of their finance department's resources to automation and AI is not just an option but a strategic necessity to remain competitive and efficient. It is an investment in the future of the company, transforming the finance department into a central pillar of the company's overall strategy and growth.