Study: Accountants Understand Financial Transformation's Importance, but Lack Cohesive Adoption Plans

• Learn why 96% of CFOs are familiar with financial transformation, compared to fewer accountants, and how this affects organizational strategies.
• Explore the top priorities driving financial transformation for 39% of CFOs and 42% of accountants, and the challenges they face in implementation.
• Dive into the role of AI and automation, preferred by 37% of CFOs and 30% of accountants, and their impact on productivity and process improvements.

Financial transformation is a hot topic in today's fast-paced business world. Despite this, many accounting and finance professionals are not prioritizing it. 

Today, FloQast published a survey, "Embracing Financial Transformation: What It Is, Why Organizations Should Want It, and How to Achieve It," taking a look at the perception, adoption, and future of the buzziest of financial and accounting buzzwords, and the results surprised us. 

The report, conducted in partnership with the University of Georgia Consumer Analytics Program, dives into the awareness and understanding of financial transformation among accounting and finance teams, highlighting insights for organizations aiming to stay competitive and compliant.

Additionally, the survey reveals the crucial role accountants, specifically, play in this transformation and offers two brand new models to help teams navigate the process. 

The Role of Accountants: Catalysts for Change

Accountants need to be at the heart of financial transformation. They motivate, determine, and implement new solutions that keep their organizations competitive and compliant. 

However, the survey found that there is a significant gap in understanding what financial transformation really entails, hindering the ability of accountants to drive meaningful change. The report found that CFOs are well-versed in the concept of financial transformation, but accountants lag behind, underscoring the need for more resources and education to empower accountants to initiate and lead transformation programs effectively.

Key Findings:

• 96% of CFOs are familiar with financial transformation, compared to far fewer accountants.
• CFOs are 2.2x more likely to be aware of financial transformation than accountants.
• Accountants need more resources and understanding to become effective catalysts for transformation.

Facing the Pressure: The Need for a Unified Vision

Both CFOs and accountants recognize the importance of financial transformation, but many organizations lack a plan for actually acting on anything. 

The survey shows that while transformation is a priority for many, only a fraction of organizations have a well-defined plan in place. I, too, have a plan to be in bed earlier and limit my screen time at night, but progress has stalled. This lack of a unified strategy can lead to fragmented efforts that fail to deliver true transformation (both for financial transformation and improving quality of sleep). To bridge this gap, it is essential for CFOs and accountants to collaborate closely, fostering a culture of continuous improvement and shared goals.

Key Findings:

• 39% of CFOs and 42% of accountants see financial transformation as a top priority.
• Over two-thirds of both groups have some form of financial transformation initiative.
• Successful transformation requires collaboration, understanding, and unity within teams.

Embracing Technology: The Power of AI and Automation

AI and automation are seen as critical components of financial transformation. 

Both CFOs and accountants believe that these technologies can significantly boost productivity and streamline processes. Despite a wide array of views on AI and automation overall, the survey indicates a strong optimism about the potential of AI to rethink accounting tasks for the better, making them more efficient and less prone to error. 

By leveraging AI and automation, organizations can achieve greater accuracy and speed in their financial operations allowing teams to focus on strategic activities that drive growth.

Key Findings:

• 37% of CFOs and 30% of accountants believe AI will increase productivity.
• Financial transformation initiatives often focus on automated processes (54% of accountants and 63% of CFOs).

Key Takeaways and Next Steps

Overall, the survey highlights the critical role of accountants in financial transformation and the challenges they face. To address these challenges and unlock the full potential of financial transformation, FloQast has adapted academic frameworks for the accounting industry to further evaluate financial transformation.

As a result, we’ve developed two new models that may be adopted by teams everywhere:

1. Financial Transformation Framework: A structured guide for effective transformation.
2. Financial Transformation Belief Model: Emphasizes mindset shift and continuous improvement.

Discover how these frameworks can revolutionize your organization's approach to financial transformation. Download the detailed eBook here to learn more and take the next step towards transformational success.

TL;DR

• Accountants are key players in driving financial transformation within organizations.
• There is a significant awareness gap between CFOs and accountants regarding financial transformation.
• Both CFOs and accountants recognize the importance of financial transformation, but many lack a cohesive plan.
• AI and automation are seen as crucial components of financial transformation.
• Successful financial transformation requires collaboration, awareness, and unity within teams.
• Greater resources and education are needed to empower accountants to lead transformation initiatives.

Call to Action: Dive Deeper into Financial Transformation

Want to dive deeper into these insights? Check out the full survey results and learn more about how your team can embrace financial transformation effectively.