There’s no doubt that the old saying “Cash is King” is more relevant than ever. The current COVID-19 crisis has already started to impact the liquidity and financial stability of many companies. The sharp focus on cash flow and optimizing cash reserves has led to CFOs and finance teams playing a pertinent and central role during this crisis.
The CFO and their finance team must ensure that the company is positioned to operate effectively during this crisis. Conducting a deep dive into the balance sheet focusing on accounts-payable and accounts-receivable terms is just one example of action to be taken – having access to an at least near-real-time, updated and reliable balance sheet is a must for the CFO at any company now.
Playing such a central role in securing not only the short-term survival but also preparing the company to be well-positioned for success in the new normal, the CFO should lead the implementation of digital initiatives that once seemed out of reach—from automated closings to real-time forecasts—these initiatives are now business-critical.
Such a proactive approach towards enhancing operational excellence by further use of digitization is fundamental for ensuring accurate, up-to-date reporting allowing for informed decision making and business continuity – not only during this crisis but also in any future crises.
In a recently published article by McKinsey, the critical role of the CFO in a crisis, like the one we are facing, is described as paramount “to ensuring that their organizations not only survive the current crisis but thrive in the next normal.”
By utilizing available technologies like Robotic Process Automation (RPA), a CFO can allow for a quick shift of human and financial resources to higher-value activities and projects that are more valuable to ensuring the survival of their organization and positioning the company for future success.
To learn how companies can benefit from implementing RPA within the financial close process – please download our eBook: The CFO’s Guide to RPA.
Written by: Michael Hjalsted