How technological advances are empowering CFOs

Over the past decade, the role of the Chief Financial Officer at growing and mid-market firms has transformed dramatically—from custodians of balance sheets and financial reports to strategic leaders with broad responsibilities who play a central role in corporate decision-making. 

Advances in sophisticated technology are driving the shift, enabling automation and the ability to analyze vast amounts of real-time data. An emerging ecosystem of tools, along with new corporate functions, is creating a hub of decision-making around the CFO that is not unlike the Office of the CEO. We are witnessing the emergence of the Office of the CFO. 

According to Gartner, 82 per cent of CFOs plan to increase technology spending this year, placing it at the top of their budget priorities. A Deloitte poll further underscores this trend, with 76 per cent of CFOs expecting digital transformation to play a crucial role in achieving their companies’ strategies. Four out of five CFOs anticipate more automation in their operations.

The rapid adoption of technology not only frees up time but enables CFOs to move beyond data collation and backward-looking performance indicators and more toward forecasting trends, identifying risks early and seizing new business opportunities. In turn, this has allowed finance executives to focus on broader objectives such as growth, innovation, long-term strategy and—perhaps most importantly—more efficient capital allocation. 

“There’s definitely more urgency to adopt technology—not just to make better decisions, but to help your business scale,” said Amy Wang, CFO of Procurify, a Vancouver-based procurement software company. “Our procure-to-pay platform empowers finance leaders to track spending before dollars are committed and after they’re spent, ensuring proactive decision-making and better alignment with their strategic goals.” 

Melissa Howatson, CFO of finance-software firm Vena Solutions, echoes this sentiment, noting the shift has been years in the making. 

“When I entered the profession, it was much more of a back-office function, where you’d crunch numbers and provide data for others to glean insights,” said Howatson, who hosts a podcast—The CFO Show—about the challenges facing the modern finance executive. “Now, I spend most of my time thinking about strategy—how to drive better business decisions and foster alignment within the company.” 

Howatson estimates her time spent on strategic planning has increased from 30 per cent a decade ago to as much as 80 per cent today. She should know. Her firm is one of the platforms changing how finance teams operate. Vena’s software offers budgeting tools that streamline planning and simplify financial reporting.  

It would be an understatement to say the impact of technology has been far-reaching, not least with the automation of routine financial tasks.

Cloud-based accounting systems and resource-planning tools have streamlined labor-intensive functions like generating invoices, paying vendors and employees, reconciling bank accounts and managing expenses. This has reduced the need for manual data entry and the time spent on review and approval processes. The same applies to tax and regulatory compliance with the availability of governance tools like Diligent Solutions, for example. 

Automation has “freed up time to focus on higher-level priorities,” Howatson said. “It allows you to spend more time listening to the business.” 

But the impact extends beyond automation. Technology is empowering CFOs by giving them tools to make faster and more informed decisions with real-time data. Dashboards and business intelligence platforms like Microsoft’s Power BI and Tableau allow CFOs to monitor key metrics like cash flow, profit margins, operational costs and sales performance instantly.

CFOs are leveraging AI-powered tools for enhanced financial forecasting and using software that helps with fraud detection and risk management. Other platforms help companies optimize supply chain operations or, like Carta, help manage equity and track ownership, including through employee stock-option plans. There’s AI-powered software that streamlines the creation of financial reports and presentations, including decks for corporate boards. Tools like Q4 Inc., which provides deep insights into shareholder behaviour, are transforming how CFOs manage investor relations. 

Vitally, real-time data and analytics are also helping businesses better understand customer needs. Advanced tools can now analyze market trends almost instantly, enabling CFOs to make more precise sales forecasts and quickly adjust pricing strategies if needed. 

“What sets Procurify apart is the actionable insights our platform delivers. We empower customers with real-time visibility into spending patterns, enabling them to stay in control of their budgets, make informed decisions, and plan proactively for the future,” Wang said.

Howatson agrees: “Companies should fairly confidently know, in real time, based on what’s coming through their sales systems, where they stand with their sales.”

The same applies on the cost side.

AI-powered tools are now allowing CFOs to get much more specific with input and cost forecasting, particularly by leveraging granular data on key cost drivers. All this reduces uncertainty and gives finance teams the tools to support investment planning and enable better resource allocation. The fast-changing technological landscape is not the only factor elevating the importance of CFOs at a time of heightened instability and continuous disruption.  

Economic volatility has become a constant backdrop, making risk management and financial agility more critical than ever. Investors and stakeholders now demand greater transparency about a company’s strategy and future prospects, especially amid a broader focus on sustainable growth and long-term value creation. 

Additionally, the rise in regulatory scrutiny, particularly around financial reporting and data privacy, has heightened the CFO’s role in ensuring compliance. Growing demands from shareholders for guidance, meanwhile, have put further pressure on companies to be more forward thinking.

Yet, within this environment of constant change, technology may be the biggest challenge of all. In a recent Accenture survey, 73 per cent of CFOs cited technology as the number one disruptor to their business.

To be sure, while technology has empowered CFOs to scale operations and drive efficiency, it has also introduced new challenges. The sheer abundance of data can become daunting, requiring CFOs to be disciplined enough to focus on the right metrics. 

“The risk is deciding what you’re going to look at,” Howatson said. “You can become overwhelmed by the sheer volume of real-time data.” Identifying which metrics require immediate attention and which are more relevant for long-term planning is crucial for maintaining focus. 

When managed well, this wealth of data and analytics allows CFOs to enhance collaboration across the C-suite by providing real-time financial insights that foster a more cohesive and strategic decision-making process, company-wide. 

“It’s no longer about spending time on manual tasks,” Howatson said. “It’s about being in the meetings where decisions are being made and ensuring finance is driving those decisions.” 

But Howatson cautioned that CFOs also need to be open minded in order to become central players in the C-suite. 

“Finance executives must stay open to change,” she said. “We’re not going back to operating in a silo.”