4 Things Every CFO Can Now Do Digitally
Business requirements are fast-changing. CFOs are now exploring tech innovations to give themselves an edge in a world where strong financial foundations alone aren’t enough to get the job done. They are going beyond the numbers, beyond conventional realms that financial management can provide.
Apart from dealing with the continuous cash flow mathematics, CFOs are also responsible for an organization’s overall financial management processes and issue of employee benefits is a critical aspect. It’s the responsibility of CFOs, in collaboration with other CXOs, to be the catalyst of digital disruption. Here are 4 things that every CFO can do digitally to reduce overhead costs and save time:
1. Employee Tax Benefits: When it comes to tax-savings, money saved is money earned. Tax benefits can earn employees a lot. Companies view this process as a slightly time-consuming activity. Employees are mostly perplexed about how taxes work. You can be certain that those are the companies that are doing things the conventional way. CFOs can now turn the whole process into a seamless, digital programme in which, disbursement of tax benefits like meal vouchers, medical reimbursements, conveyance, fuel and communication allowances, leave travel allowances, gift vouchers can be done instantly. Users can make claims digitally, and not have to worry about saving bills and filling up paperwork. The entire programme is managed via a digital interface that not only makes it easier for HR and Payroll, but also saves companies manpower and resources by doing away with physical distribution and manual checks.
2. Expense Management: How companies manage their cash flow reflects directly on their profitability as well. Digital expense management lets CFOs understand their expenses, plan out budgets and of course settle overheads based on priority, while getting real-time insights into the company’s cash flows that are impacting business. Because the process is digitised, it allows for bills to be thoroughly vetted. This will prevent discrepancies and discourage misconduct. Of course, it does away with the need for paperwork and manual data entry, but the real boon is the money that it saves as a result of accurate data and non-pilferage of company assets.
3. Vendor Management: Vendor management for an all-round view of managing vendor relationships strategically can be bolstered with digital practices. Building and maintaining these relationships takes time and effort, and that can prove costly to companies. Managing the process digitally, on a cloud connected system can help streamline processes, help with organising and prioritising vendor payments and storing and accessing documentation. For businesses working with channel sales partners, managing incentives can be hassle-free. Digitisation brings transparency, a more secure grip on the processes and cuts down on time and effort needed for processing. Compliance related issues may need addressing too in such situations, and with documentation available on demand from the cloud, you can always ensure you’re on track. Digital vendor management is all about easy, intuitive workflow, shorter lead time and consequently lesser administrative overheads for the company.
4. Rewards and Recognition: Employee engagement through rewards and recognition is one of the methods companies use to motivate employees to align themselves to the company’s goals better and in a more focused way. With these R&R programmes now available on digital platforms, there’s simply no better way to engage with the generation of instant gratification. Rewarding employees is instant and it happens through a medium that they understand and love: electronically through smartphones or the web. These programmes are often customisable and self sufficient. It saves companies time and resources that they would otherwise need to source their needs through multiple vendors.
The kind of super-productivity that’s expected of CFOs doesn’t come lightly. Along with experience, learning and creativity, they also need a bit of a helping hand technology and what it can do for them, when properly harnessed.
