A new year often comes with the motivation to make it the best one yet. And this often includes maximising business performance.
But being able to perform at your best means overcoming challenges. With the world becoming increasingly data-driven, businesses must welcome innovation, enhance efficiency and future-proof their operations.
For financial operations, this equals modernisation. Traditional processes like spreadsheets and legacy accounting systems no longer cut it. Newer solutions are needed to drive productivity and share vital data.
In this blog, we explore the most significant challenges facing financial operations in 2024 – and how to overcome them with modern solutions and processes.
Challenge #1: Catching the AI and Microsoft Copilot wave_
2023 was the year of AI, with the likes of Copilot, Bard and ChatGPT entering everyone’s vocabulary. The AI revolution will only increase in 2024. it’s no surprise that 64% of CFOs are investing in new technologies like AI.
Those who don’t embrace AI run the risk of being left behind. And for good reason. AI has the power to automate administrative tasks associated with finance, freeing staff to focus on high-value work. So, it’s highly rewarding for those who leverage it well.
Generative AI in particular promises huge benefits. By learning from you over time, it can help finance teams to predict cash flow accurately and gain better insight.
But embracing AI means substantial change for any organisation. There’s still a lot of uncertainty and anxiety around AI, particularly around security and human impact.
Despite this, many leading technology companies are leveraging AI to deliver powerful and secure tools. Understanding the benefits of these will help you to overcome any concerns. Especially when it promises to boost operational efficiency, productivity and accuracy.
Finding the right solutions is crucial. By doing so, you’ll stand a better chance of winning with AI, keeping ahead of competitors, and bringing sceptics on-board.
Challenge #2: Improving data visibility across financial operations_
Technological advancements, like AI, promise to give you more access to data than ever before. In today’s age of customised experience and insight, people also need data. Specifically real-time data that allows them to act quickly and make smarter decisions.
The need for data is company-wide. So, while the vast amount of it may sit in the finance team, everyone needs sight – from budgets to financial forecasts.
You need to offer total visibility to those who need it, when they need it, rather than relying on end-of-month reports. This is something many legacy systems are not capable of, resulting in manual and time-consuming processes.
Add in the hybrid nature of many organisations and visibility becomes even more crucial (and complicated).
By investing in cloud-based solutions, like Business Central, it becomes much easier to share data with those who need it.
This allows finance to become a data partner and empower smarter company-wide decisions. After all, a business can only progress as fast as its financial operations can.
Challenge #3: Doing more with less when it comes to financial operations_
We’ll state obvious: times are tough. With many companies cutting budgets in the face of economic uncertainty, teams must do more with less. For finance teams, that means finding ways to cut costs and maximise profit on limited resources.
In 2024, AI and technology can help to bridge the resource gap. But it’s crucial to find the right solutions. 88% of CFOs and other business executives say they struggle to capture value from their technology investments. Choosing the wrong tools can drain resources further.
With the right solutions, you’ll be able to build optimised processes that boost productivity. So, you can do more without having to worry about additional labour costs.
You’ll also maintain lean costs that benefit the business during economic uncertainty. It will also prevent cost increases being passed onto customers, allowing you to remain competitive.
Challenge #4 Welcoming growth_
Although many companies are currently focusing on lean practices, that doesn’t mean you shouldn’t also be looking towards growth.
Growth often starts with financial operations. But if the finance teams processes are outdated – like working from spreadsheets or legacy systems, it isn’t scalable. You’ll find yourself limited – leading to inefficiencies, frustration and ineffectiveness.
Plus, these systems often don’t provide the data visibility to empower the intelligent decisions that lead to growth.
With mergers, acquisitions or organic growth, you need systems and processes that can evolve with you. Without switching toward modern alternatives, you face headaches that threaten your future growth.
Challenge #5: Moving towards the future_
In an increasingly modern world – of digital, data and tech, many businesses risk becoming obsolete if they refuse to stay up to date.
The challenges we’ve mentioned already are crucial in future-proofing your financial operations. but modernisation is a challenge in itself. It requires careful change management, updating infrastructure, up-skilled staff and the right tools.
To do it efficiently, you need to bring your team and entire organisation on board, invest in the right technology and commit to the evolution. Every finance team is different, so you will need to find an approach that works for yours.
Getting support from the right partners is going to be crucial in making sure the change succeeds.
Improving your financial operations in 2024
It’s more crucial than ever to embrace the future in 2024. The new world of digital is coming fast. And by embracing AI, improving processes and optimising for growth, you will be best prepared.
By modernising, there are many benefits to gain: increased productivity, accuracy and cost-effectiveness. This will give your finance team more capacity, satisfaction and better performance. But most importantly, you will allow your financial operations as it should: to be the data core of the business. It will provide insight that encourages other teams to work better and contribute to overall success.
Are you ready to bring your financial operations into the new age? Microsoft Business Central can replace your legacy software with a leading cloud-based accounting system. It is entirely customised to your needs, meaning you’ll have everything your team needs to thrive.
Plus, with support from Microsoft Copilot, you’ll be able to automate those common tasks without compromising your finance data.
If you’re ready to digitally transform your finance operations and get long-lasting results, our event will tell you how to change your processes for good. Join us to find out the benefits of Business Central and get practical advice from real-life experts.
