Year-on-year data also shows that confidence
in cash flow visibility remains at a staggering low, with
just 2% of C-suite and finance and accounting leaders
expressing complete confidence
Errors due to manual processing of critical
finance and accounting activities identified as key issue
negatively impacting trust; as a result, majority automating via AI
and other emerging tech
LOS
ANGELES and LONDON and
SYDNEY and SINGAPORE, Jan. 30,
2024 /CNW/ -- New research shows that nearly 40% of
CFOs around the world do not completely trust the accuracy of their
organization's financial data – creating challenges for strategic
decision-making at a time when global business leaders are
confronted with a wide range of external challenges. Confidence in
cash flow visibility also remains stubbornly low, making it
difficult for organizations to respond to unexpected market
changes, according to a survey commissioned by digital finance
transformation leader BlackLine, Inc. (Nasdaq: BL).
The survey of over 1,300 C-suite and senior finance and
accounting (F&A) professionals in the US, Canada, UK, France, Germany, Australia, and Singapore reveals the factors business and
F&A leaders globally are worried will disrupt their
organization and the broader business and economic environment.
More than three-quarters (78%) of overall respondents are concerned
about another global financial crisis. Respondents are also worried
about the impact of cybersecurity issues (76%) and new disruptive
technology (73%) on their business.
Responding to Business and Economic Disruption
When asked what would help their company respond to
business disruption, CFOs said one of the most important factors
would be the ability to access and analyze financial data in real
time. However, 37% admitted they do not completely trust their own
data. Levels of trust are even lower for those closer to the
numbers, with 50% of senior finance and accounting professionals
indicating they do not fully trust the financial data they are
working with.
Additionally, for the second year in a row, a staggering 98% of
overall respondents confirmed they do not have complete confidence
in the visibility their organization has over its cash flow. This
is as 37% acknowledge that understanding cash flow in real time
will be critical for their company's ability to deal with
unpredictable market changes.
Visibility Challenges Undermining Responsiveness
The lack of confidence in cash flow visibility is causing
challenges for business responsiveness. Close to half (48%) of
overall respondents say this makes it harder to respond to market
fluctuations and a similar number (47%) are concerned they are
making decisions based on inaccurate or out-of-date
information.
Manual processes and the potential for human error are also
creating challenges for organizational preparedness and
decision-making. Almost two-thirds (64%) of respondents stressed
that the overwhelming volume of manual day-to-day work leaves
little or no time for proper financial planning and analysis. At
the same time, more than two-thirds (68%) state that manual work
leaves their organization vulnerable to errors that could undermine
business decision-making.
Owen Ryan, co-CEO of
BlackLine, said: "Trusting the data organizations work
with is critical for effective decision-making, not only for the
Office of the CFO but for the entire business ecosystem. This is
especially important when dealing with external events that are
difficult to predict or hard to control. We have been monitoring
trust and confidence in financial data over the last five years,
and while trust levels have started to improve, the bottom line is
that trust is still not nearly as strong as it should be, making it
difficult for leaders to make fast, effective, data-driven
decisions."
Manual Processes Limiting Trust
When asked why
they did not completely trust their organization's data, almost a
third (31%) of global respondents said the data comes from too many
different sources, meaning they cannot be certain that all data is
being accounted for. Other reasons include a reliance on clunky
spreadsheets that leave F&A teams in the dark until month-end
(27%) and outdated processes, including manual data collection
which is prone to human errors (25%).
In acknowledging the myriad of challenges with manual work,
C-suite and F&A leaders feel the modern business has to embrace
new technologies like AI to streamline their financial operations,
with a majority of respondents saying that cloud computing (80%),
generative AI (78%), and new kinds of AI (76%) are essential for
improving business resiliency in the face of future disruption.
Ryan continued: "When we look at what is undermining
confidence in financial data, we repeatedly find that ineffective,
manual processes are the problem. Businesses have invested in
technology solutions in recent years, including emerging forms of
AI, but it's clear that too many are still reliant on manual
processes for a significant portion of finance and accounting work.
Companies need to embrace modern, next-generation solutions that
automate cumbersome processes, such as financial close,
consolidation, invoice-to-cash, and intercompany, and give them
complete visibility and control over their financial data. These
will be indispensable assets in navigating the terrain of the
future and building resilience for future success."
A detailed white paper on the survey findings can be found
here.
Survey Methodology/Notes for Editors
The research was
conducted online by Censuswide, surveying 660 C-level and 679
F&A professionals in seven markets (US, Canada, UK, France, Germany, Australia, and Singapore), with minimum annual revenues as
follows:
- US: 150m USD
- Canada: 50m CAD
- UK: 50m GBP
- France: 50m EURO
- Germany: 50m EURO
- Australia: 20m AUD
- Singapore: 20m SGD
About BlackLine
Companies come to BlackLine (Nasdaq: BL) because their traditional
manual accounting and finance processes are not sustainable.
BlackLine's market-leading cloud platform and customer service help
companies move to modern accounting by unifying their data and
processes, automating repetitive work, and driving accountability
through visibility. BlackLine provides solutions to manage and
automate financial close and consolidation, invoice-to-cash, and
intercompany accounting processes – inspiring, powering, and
guiding large enterprises and midsize businesses on their digital
finance transformation journeys.
More than 4,300 customers trust BlackLine to help them close
faster with complete and accurate results. The company is the
pioneer of the cloud financial close market and is recognized as
the leader by customers at leading end-user review sites including
G2 and TrustRadius. BlackLine is a global company with operations
in major business centers including Los
Angeles, New York, the San
Francisco Bay area, London,
Paris, Frankfurt, Tokyo, Sydney, and Singapore. For more information, visit
blackline.com.
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SOURCE BlackLine