Future-proofing your finance team  

Rob Israch at Tipalti offers five strategies for retention and development of your finance team

 

Finance departments are the lifeblood of organisations, responsible for managing financial transactions, generating critical reports, ensuring compliance with regulatory requirements and more. 

 

However, with the advent of cloud technology and the automation revolution, the role of finance teams has evolved significantly. They are no longer confined to mundane tasks but are also expected to provide strategic insights based on real-time data, collaborate with other areas of the business and add strategic value.

 

In this dynamic environment, it’s essential to retain and develop your finance staff, making them feel valued and ensuring their long-term commitment to your organisation. Here are five ways to future-proof your finance team’s careers:

 

1. Embrace technological advancements

Finance professionals did not embark on their careers to perform manual, repetitive tasks. Embracing technology, especially automation, can liberate their time for more engaging and strategic work. By automating manual processes in areas like accounts payable, finance teams can add much more strategic value. AI and generative AI tools are only unlocking this further.  

 

CFOs can also consider incorporating cloud-based Enterprise Resource Planning (ERP) solutions, such as Oracle NetSuite or Microsoft Dynamics, into their workflows. These ERPs automate critical processes, including bookkeeping, bank reconciliations, and payroll management.

 

Most ERP vendors offer app marketplaces that connect to third-party solutions, facilitating seamless data flow and further enhancing automation. 

 

2. Promote cross-functional collaboration

Traditionally, finance departments often operated in isolation within organisations, primarily focused on transaction processing. However, new technologies have made it possible to generate real-time data and collaborate with other departments, such as CRM and martech teams. This opens up opportunities for finance to work collaboratively across the entire organisation.

 

This collaborative approach can encompass a wide range of activities, from budgeting to making the case for investment. For example, a Chief Marketing Officer (CMO) might require assistance in calculating the potential return on investment for a digital marketing campaign aimed at acquiring new customers. Similarly, the Chief Executive Officer (CEO) might need a financial model for entering a new international market.

 

By incorporating cross-functional collaboration as a key responsibility of the finance function, team members can develop soft communication skills and become more confident in engaging with stakeholders across the organisation. This shift towards collaboration not only benefits the finance team but also bolsters the entire company’s performance.

 

3. Foster data analysis skills

In today’s digital age, data has become a cornerstone of decision-making. Companies are now capturing vast amounts of financial and non-financial data from their customers, making data analysis an essential skill for finance professionals. Encouraging your finance team to become proficient in data analysis enables them to provide valuable insights to optimise the company’s focus and spending.

 

Tools such as Microsoft Business Intelligence (BI), Tableau, and Looker collect data from various sources, including ERP systems and Customer Relationship Management (CRM) software. They allow users to visualise data in various formats, making it easier to identify trends and extract meaningful information.

 

In addition to data analysis, finance professionals should be trained in setting up and measuring Key Performance Indicators (KPIs) relevant to the current economic environment. Once established, these KPIs can be presented on a real-time business dashboard, accessible across devices, which employees can use to make informed recommendations and strategic decisions.

 

4. Open communication and innovation

Effective communication and an open, innovative environment are essential for nurturing the growth and development of finance professionals. Weekly team meetings for the finance department, where every team member has the opportunity to contribute, can go a long way in making employees feel heard and valued. This collaborative approach can result in fresh and creative ideas, which can come from team members at all levels.

 

In the rapidly changing business landscape, innovation is key to staying ahead of the curve. For instance, social media-type business applications (like Slack) only became widely adopted once younger generations, like millennials, entered the workforce. Today, Gen Z, who are now the ones entering the workforce, can help you to challenge the status quo due to their fresh perspectives and familiarity with evolving technologies.

 

5. Integrate learning and development into annual reviews

One effective way to motivate finance professionals to take on more responsibility and commit to continuous improvement is by making education and career development a central component of annual performance reviews. 

 

For example: 

• Presentations by senior staff: Encourage senior and experienced staff members to share their knowledge and expertise with the team. These presentations can cover various aspects of finance, industry trends, and best practice.
• Short courses and training: Empower team members to enrol in short courses offered by trade bodies (like UK Finance) and training providers. These courses should be specifically relevant to the finance industry and tailored to individual career development goals.
• Participation in industry events: Encourage finance professionals to attend industry conferences, webinars, and workshops. These events provide valuable insights into industry trends and offer opportunities for networking and knowledge exchange.

Preparing your finance team for the increasingly broad remit of their roles is essential for retaining valuable talent and ensuring their long-term commitment. By implementing these five strategies, you can create a work environment where finance team members feel valued, engaged, and empowered to contribute to the long-term success of the wider business. 

 

In the ever-evolving landscape of finance, adaptability and continuous growth are the keys to success.

 

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Rob Israch is President of Tipalti

 

Main image courtesy of iStockPhoto.com