AcctTwo Blog

If the COVID-19 pandemic has taught us anything, it’s that business operations needs to be early adopters of technology to overcome digital transformation challenges. Traditionally, finance and operation teams tend to be more conservative when adopting  platforms, so that controls and bugs are properly vetted, however – in our new remote world, we need to be as connected as ever. “An AvidXchange survey of 500 businesses found that since the pandemic began nearly three out of four businesses (74 percent) have added new technology to enhance work, reducing pressures and creating agility as they navigate a rapidly changing work environment.”

Marcus Wagner, AcctTwo’s Founder & CEO, discusses the harsh reality of doing business during the COVID-19 pandemic on Financial Executives International’s (FEI) website. The role and expectations of CFOs and finance teams is changing as they face immeasurable challenges and make tough decisions. “The COVID-19 pandemic and its associated economic impact brought a wave of unforeseen challenges to company financial leaders, forcing many to make difficult and strategic decisions in order to remain in operation as businesses around them shuttered.”

No matter the size of your company, there is nothing more critical than the ability to generate and manage cash. Cash is the lifeblood of the company; and the most critical factor in survival. Nearly 40% of startups fail because of financial challenges; and while that number certainly has the potential to grow with COVID-19, we want to share some practical cash management advice to not only weather this unprecedented time, but also put in place responsible cash management practices that will serve you well now and in the future. 

How a Modern Financial Management Software Helps with Sound Transaction Management

At AcctTwo, when we refer to Sound Transaction Management we mean setting up the right chart of accounts, optimizing the order-to-cash and procure-to-pay processes, and capturing all the relevant information in the right place. 

Running a startup is hard. It is your baby and you give your mind, body, and soul over to it. Yet while you started with a focus on the big picture, it is easy to get lost in the weeds very quickly. At AcctTwo, we understand your headspace not only because we were a start-up ourselves, but because we work with start-ups everyday.

Increasingly, the CFO and finance leaders in growth SaaS companies are the business model architects for analyzing and guiding the success of the company. 

The role of the modern CFO is changing substantially from just a financial gatekeeper to becoming a strategic partner in running the business. This change is driven by advances in technology, evolution in markets, and shifting responsibilities throughout the C-suite. It's both an exciting opportunity and an urgent obligation.

The concept of "Digital Transformation" using technologies like Artificial Intelligence (AI), Robotic Process Automation (RPA), and Blockchain can be overwhelming for any organization to sort through, much less implement an adoption strategy for.

As an example of the difficulties organizations have had with digital transformation, a recent Gartner survey shows that even though companies have made data and analytics a priority in recent years, 91% of companies don't feel that they've reached a "transformational" level of maturity in that area. Companies are eager to embrace the potential of integrated technologies and analytics, and they recognize that in many industries digital transformation is essential for remaining competitive. The problem is that wanting to change and actually transforming can be miles apart.

Today's CFOs have a mandate to implement new technology across their organizations. A recent survey by Grant Thornton and CFO Research revealed that 69% of the senior finance executives who responded planned to invest more in technologies, with almost 40% increasing budgets by 10% or more. These efforts are intended to not only catch up with the competition, but also to surpass them with new offerings and a better customer experience. 

Unfortunately, the urgency of adopting new technology is matched by its complexity and difficulty.