Small and midsize businesses have a lot of advantages over much larger companies. For example, small businesses are able to be nimble and make quick decisions and strategic pivots. They are often able to be more innovative and seize new opportunities quickly without having to deal with a large bureaucracy.
Though, of course, small businesses aren’t without their disadvantages. Leadership at smaller companies can become swamped with tasks that big companies typically outsource or automate. Also, frequently, small business leaders are skeptical about the benefits and importance of new technologies. According to a report from Oxford Economics, 74% of small and midsize businesses said emerging technology is increasing the finance function’s complexity, in contrast to 58% of larger companies.
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However, the added capabilities that new technology offers can pay off by allowing your finance function more visibility, control, and efficiency. Below we’ve collected a few reasons new technology can help increase the effectiveness of your company’s finance executives:
1. New technology helps you scale
As businesses grow, the amount of data they have to deal with grows, too. The more expenses your employees submit and the more invoices finance deals with, the greater the strain on legacy systems. However, according to the report, only 56% of companies with €1 billion or
less in revenue say their finance function is automating for efficiency. The cloud, big data, ERP platforms, and analytics helps to automate cumbersome processes and centralize critical information, giving time back to finance leaders for more strategic partnerships.
2. Switching from your legacy systems presents a growth opportunity
With 82% of small businesses saying that their CFO is increasingly involved in strategic decisions outside of finance, prioritizing finance executive’s time is a challenge. This is another area where technology can help. Automation and efficiency can free up leaders to focus on more value-added tasks and drive strategic growth.
3. With greater collaboration comes greater visibility
Emerging technologies give teams access to more data than they’ve ever had before. As a result, half of companies surveyed say they are providing technology to promote collaboration between finance and other business units. Oxford Economics says that this “will allow finance executives to add more value in areas where they may traditionally not have influence or decision-making ability and help maintain the level of collaboration even as their company grows.”
Taking advantage of modern technology, tools, and techniques can allow your finance teams to have a greater impact on the business. Read the full Oxford Economics report to learn why the best run businesses embrace the latest and greatest technology.