New research shows nearly 40% of CFOs worldwide do not fully trust the accuracy of their organization’s financial data, and global business leaders face a range of external challenges. Strategic decision-making is currently challenged. Confidence in cash flow visibility also remains low, making it difficult for organizations to respond to unexpected market changes, according to research commissioned by BlackLine, Inc., a leader in digital financial transformation. .
The survey of more than 1,300 executives and senior financial and accounting (F&A) professionals in the United States, Canada, United Kingdom, France, Germany, Australia, and Singapore found that corporate and F&A leaders around the world The business and economic environment that reveals factors that you fear may disrupt your organization. Over three-quarters (78%) of overall respondents are concerned about a new global financial crisis. Respondents are also concerned about the impact of cybersecurity issues (76%) and new disruptive technologies (73%) on their business.
Responding to business and economic disruption
When asked what would help their companies deal with business disruption, CFOs said one of the most important factors was the ability to access and analyze financial data in real time. However, 37% admitted they don’t fully trust their data. Those who are closer to the numbers have even lower levels of trust, with 50% of senior finance and accounting professionals saying they don’t fully trust the financial data they work with.
Additionally, for the second year in a row, an astonishing 98% of all respondents admitted that they are not completely confident in their organization’s visibility into cash flow. This comes as 37% agree that real-time visibility into cash flow is critical to a company’s ability to cope with unpredictable market changes.
Visibility challenges impair responsiveness
Lack of confidence in cash flow visibility challenges business responsiveness. Nearly half (48%) of all respondents said this made it difficult to respond to market fluctuations, and a similar number (47%) said they were making decisions based on inaccurate or outdated information. I am concerned that this may be the case.
Manual processes and the potential for human error also pose challenges to organizational preparedness and decision-making. Almost two-thirds (64%) of respondents highlighted that the sheer volume of manual day-to-day tasks leaves little or no time for proper financial planning and analysis. At the same time, more than two-thirds (68%) say manual work makes their organizations vulnerable to errors that can undermine business decisions.
Owen Ryan, Blackline Co-CEO, Said: “Trust in the data your organization handles is critical to effective decision-making, not just for the CFO office but for the entire business ecosystem. This is especially important when dealing with external events that are difficult to predict or control. We have been monitoring the trustworthiness and trustworthiness of financial data for the past five years, and while trust levels are starting to improve, the bottom line is that trust is still not as strong as it needs to be and that leaders need to act quickly. It’s difficult to make effective, data-driven decisions.”
Manual process to limit trust
When asked why they can’t fully trust their organization’s data, nearly a third (31%) of global respondents say there are too many sources of data and they can’t be sure that all their data is accounted for. I answered no. Other reasons include reliance on clunky spreadsheets that leave F&A teams in the dark until the end of the month (27%) and outdated processes such as manual data collection that are prone to human error (25%) and so on.
Recognizing the myriad manual challenges, executives and finance leaders feel that modern businesses need to embrace new technologies, such as AI, to streamline financial operations. A majority say cloud computing (80%), generative AI (78%), and new types of AI (76%) will be essential to improving business resilience in the face of future disruptions.
Ryan continued: “When we look at what is eroding trust in financial data, we repeatedly see that inefficient manual processes are the problem. In recent years, companies have invested in technology solutions, including new forms of AI. However, it is clear that too many companies still rely on manual processes for a significant portion of their finance and accounting operations. They need to embrace modern, next-generation solutions that automate cumbersome processes and give them complete visibility and control over their financial data. It will be an essential asset as we build.”
A detailed white paper on the findings can be found here.
