EXPERT FORECAST : BANKING AND FINANCE
not have the right technology behind them . As family-owned businesses grow , move into new geographies and build new online ordering processes , they need solutions in place that can track performance and allow them to keep on top of all moving parts .
External hires usually bring IT and tech-knowhow with them from other organisations and can make recommendations on the best tech for the job , adept to using different types of software or working methods to enhance operations . For example , moving to a cloud-first strategy or bringing a managed IT services provider onboard are vital to make the work of the finance team easier and bring organisation-wide benefits . FOB leaders know that tech will help the company grow – they just need help selecting the best tools and implementing them effectively .
Bringing the outside in
Bringing in a financial professional or external CFO can prove a crucial step in FOBs ’ growth strategies . As well as looking to enhance processes , metrics , tech , and compliance , finance professionals often offer an alternative strategical perspective . They can highlight areas where money is wasted or identify revenue opportunities , as well as improve systems or processes and ensure that they are aligned with company operations .
Family-owned businesses need their external talent to handle multiple priorities consistently , tracking performance , success and areas for improvement . With a new laser focus on the finances , FOBs can bring macroeconomic indicators , such as energy costs and unemployment numbers , into the conversation . Equipped with this wider range of data , finance leaders can build a clearer picture of cash flow and revenue potential .
Bringing in a finance professional with the acumen to watch and interpret a wide variety of metrics that impact the business can provide a vital competitive advantage . Interpreting data across functions such as supply chain with inventory management and forecasting , and sales with sources of customer interaction , allows CFOs to create and track against new KPIs that drive increased performance .
Finance professionals need the best tech for the job
The benefits of bringing in new finance talent are evident – however , they cannot do their job properly if they do
External hires can help leaders to level up their enterprise-level accounting system , incorporate enterprise resource planning and human capital management solutions into their arsenal and offer advice on future upgrades . For instance , an ERP system can automate accounting operations and enforce strict approval mechanisms , making transactions more secure and removing the burden of repetitive data entry from finance professionals . Effective automation can also have a big impact on a FOB ’ s financial performance . For example , 65 % of businesses that have incorporated Artificial Intelligence ( AI ) into their strategy and corporate finance function report an increase in revenue .
When family-owned businesses start out , everyone pitches in across different functions of the business . However , as the company grows and finds success , FOBs must address skills gaps and look to external finance talent to fill the void , helping to navigate new challenges and bring new ways of working . With the right combination of finance professionals , technology and automation , family businesses can maintain the high levels of trust they have with their customers , while driving the revenue and growth needed to survive in 2023 . � www . intelligentfin . tech
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