Technology as a Driver of Corporate Financial Control

The Corporate Financial Future Is In Automation

The decisive role that technology plays in corporate financial control is becoming increasingly evident. In an era where digital transformation is accelerating, organizations need to abandon outdated methods and embrace technological approaches for various operations, with a special focus on the financial area.

Goodbye, Manual Processes: The Rise of Automated Financial Control

The decrease in the use of manual practices, especially in finance, demonstrates the growing need for meticulous control and monitoring of documentation, records, transactions, and other aspects that generate a constant flow of data. With Gartner’s prediction that by 2027, 90% of descriptive analyses and financial diagnostics will be fully automated, the technological revolution in financial management is undeniable.

Technology has drastically transformed the financial sector, corroborating the current reality in which we find ourselves. Through management tools aided by artificial intelligence, the financial area benefits from trend analyses, optimized strategies, risk assessments, investment opportunity identification, improvements in financial processes, and, undoubtedly, more robust support for decision-making.

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Resistance to Change: The Obstacle to Progress

However, despite all the advancements, many organizations still resist adopting such practices. As a result of this resistance, the scenario in Brazil becomes challenging. According to data from IBGE, before the pandemic, 48% of companies shut down within three years, and bankruptcies increased by 80% in the last two years, according to data from Serasa Experian. The lack of efficient management, including in the financial area, is one of the main reasons for these numbers.

The financial area of a company goes beyond specific activities such as accounts payable and receivable, and cash flow management. It also encompasses day-to-day responsibilities and functions, such as strategic financial planning, risk management, tax planning, data analysis, and information traceability, which are essential to avoid errors that may compromise organizational performance.

To ensure the economic health and sustainable growth of the organization, management of financial resources, strategic planning, and decision-making are essential. And technology becomes increasingly necessary to ensure these results.

Through the application of data intelligence and automation, it is possible to have more assertive management, with greater control and accurate tracking of operations. Technology also helps ensure maximum efficiency and time optimization, allowing the team to focus on strategic activities.

The Future of Finance: Automation and AI

The expectation is that the integration of technology in the financial area will continue to advance. According to Gartner, by 2028, 50% of organizations will have replaced time-consuming forecasting approaches with AI, resulting in more autonomous operations.

Companies that wish to enter the digital transformation era need management tools, such as an ERP, which has technological resources that ensure greater coverage of the company’s areas, including finance.

Resistance to adopting technological solutions is understandable, but it is important to emphasize that these tools do not replace processes – they help enhance them. We are now living what was once considered the future. The current market demands that organizations adhere to the principles of financial management to ensure their survival. The days when bureaucracy was synonymous with the financial area are gone – now technology is the main ally, bringing promising results.

Credits: Quelma Maia