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Tech CFOs Need to Maximize Their 2023 Budget

When preparing their upcoming annual budget, the tech CFOs consider investing in can have long-term benefits for their organizations.

The ROI of tech investments has risen to $4.81 per every dollar spent and is expected to rise to $6.31 in North America by the year 2027.

Chief financial officers (CFOs) have a lot of responsibility as they hold the top financial position in an organization. CFOs are often advocates for technology since they understand the long-term rewards of digitally transforming organizations.

Read on to find out which tech CFOs can plan to invest in to maximize return in their companies as they strategize a budget for the upcoming year.

Recommended Tech for CFOs’ 2023 Budget

It can be overwhelming to create a tech budget with so many solutions in the tech market. We bring you some information on technology that can have the most impact on a company. The benefits of these solutions include financial returns, better employee satisfaction, and improved customer relationships.

Enterprise Resource Planning (ERP)

An enterprise resource planning (ERP) system is a type of software used to manage daily business activities and operations. ERP systems have many benefits including more unified company data, increased productivity, and visibility of multiple processes across an organization.

For CFOs the specific advantages include reduced organizational costs and data-analytics which can be used to create data-backed insights. These insights can be reviewed to check if any operations are unnecessary or costing the organization more that they should.

An ERP system can reduce operational costs by 23% and administrative costs by 22%.

Automation is a big benefit of ERP systems which leads to reduced costs. Processes that can be automated include financial reports, which CFOs can use to identify areas to grow and to fine-tune; inventory management, which helps plan for restocking so your customers are never waiting; and customer management, which lets your business visualize where in the sales funnel your customers are so it can create more targeted marketing campaigns

Visibility, one of the major benefits or ERPs, can benefit CFOs as well. Because a solid ERP system can integrate many of the platforms and tools a business uses, it allows CFOs to look deeper into the processes and operations of different departments.

CFOs can then use this data to analyze where budget expenditures can be increased or decreased. They can create a better-informed, data-backed, and more strategic budget for the upcoming year.

Related Video: ERP Demo for Managers

Robotic Process Automation (RPA)

RPA is the use of software with artificial intelligence (AI) and machine learning algorithms to perform tasks that are repetitive and high in volume. For CFOs the benefits include operational, hiring, and IT cost reduction.

Although RPA tools are not actual humanoid robots, they are software bots that can be programmed to complete tasks that otherwise will consume too much time when performed by human employees. Additionally, RPA eliminates the risk of error, increasing customer satisfaction.

RPA is akin to having AI employees who can do highly repetitive work so that human employees can have more time to perform highly specialized or demanding tasks that need creative and critical thinking.

86% of respondents indicate that their expectations of productivity improvement from RPA were met or exceeded, while the same is true of 61% in relation to expectations on cost reduction.

Accounts payable is one area in which CFOs will see a fast return on investment. RPA bots can process invoices by recognizing each invoice file, extracting relevant data, and disseminating it wherever it needs to go. They do this at a fraction of the time it would take a human employee.

Domestic businesses can reduce costs up to 65%, according to Nasscom. Cost reductions can be seen also in training and onboarding, IT, and data migration.

Document Management Software

It is thanks to CFOs that many organizations have begun or expanded their digital transformation strategies. In fact, 78% of CFOs plan to increase or maintain digital investments through 2023 even if inflation continues.

This is because CFOs understand the importance of technology in improving customer and employee satisfaction, operational efficiency, and business continuity.

Document management software allow users to digitize and organize all company documents, so that less resources are spent storing, searching for, and sharing these documents. Documents can be accessed simultaneously by employees with access, while giving company leaders visibility over who has access.

Collaboration is improved because quality document management software can be integrated with existing applications. “Versioning,” which refers to the documented changes and various versions of a document are also stored. That way changes can be edited, revised, or approved.

With 83% of workers having to recreate a document which already existed because they were unable to find it on their organization’s network, this software eliminates the need for a cumbersome manual cataloguing option.

Related Blog: How Kofax Can Revolutionize Your Document Processes

Project Management Software

Organizations that use proven project management practices waste 28 times less money than those who don’t. Therefore, a reliable project management project solution not only helps an organization deliver services and accomplish goals on time; it also increases savings.

Project management software is used to plan project timelines, allocate resources, designate tasks, facilitate collaboration, etc. It allows teams in an organization to reach goals without confusion and while making the most of their time and resources.

Does your organization use a project management solution throughout its different departments or is this solution only capitalized on by certain teams?

“Time is the scarcest resource and unless it is managed nothing else can be managed.” – Peter Drucker

Imagine, for instance, managing a project with sticky notes, numerous phone calls, or loose documents. It will soon become too complicated to keep track of which team member is doing what and at what stage the project is currently.

With a project management software, everything is in one platform that can be integrated with others in the organization. Visibility increases for the whole team and leaders. Schedules and tasks can be easily changed or moved. Employees will have more time to complete their tasks and not worry about each piece of the puzzle.

For companies with remote workers, the benefits of a project management solution are numerous. Employees can log in and start right away on their tasks. There will be less time required for meetings, clarifications, and answering questions.

A quality project management software will also allow for easy collaboration with document access and sharing, clear project timelines, and status updates.

CFOs who do not yet have included a project management solution in their upcoming budget should consider these organizational advantages.

Related: Project Management Solution

Bottom Line

With the advent of the budgeting season for the next year, CFOs can consider investing in technology due to its many organizational benefits.

Although these solutions require monetary and time investment, the long-term ROI for organizations is not only financial. Companies that invest in tech are often innovative disruptors in their industries.

The tech CFOs advocate for create advantages such as visibility, data analysis, informed decision-making, more efficient workflows, and better collaboration. It’s no wonder that CFOs are often the heroes of company’s digital transformation initiatives.

If you want to learn more about the benefits of investing in technology for your organization and how to build a business intelligence strategy, check out this downloadable checklist, What Businesses Need for a Successful Business Intelligence Strategy.