The term Digital CFO has emerged in recent years to describe a financial leader who not only masters spreadsheets and forecasts, but also drives innovation and enables agility across an enterprise. It is a response to the increasing demand for real-time decision-making.
The concept goes beyond adopting digital tools. Rather, it reflects a fundamental evolution in the CFO’s role from financial gatekeeper to strategic enabler.
Traditionally, CFOs focused on financial reporting, budgeting, risk management, and compliance, but as organizations faced more complex market dynamics, the finance function began to shift.
Today’s Digital CFO integrates finance with technology, operations, and strategy - driving performance and transformation.
What’s the Payback?
The personal and organizational benefits of this shift are significant. For CFOs, embracing digital tools means moving beyond manual, error-prone processes and gaining faster, deeper insights into business performance. This empowers them to advise the CEO and board with real-time financial intelligence.
As technology continues to redefine business, the Digital CFO will become not just a competitive advantage, but a necessity. The evolution requires a mindset shift - from controller to innovator, from record-keeper to value creator.
While the term might sound dehumanising, it has the potential to be the opposite.
Removing the more repetitive, “mechanical” tasks through automation frees up time for strategic analysis, letting the CFO's human qualities shine through.
For the company, a digital finance function can improve operational efficiency, enhance accuracy, ensure regulatory compliance, and support faster, data-driven decision-making.
Ultimately, the rise of the Digital CFO signals a broader transformation. One where finance is not just a support function, but a dynamic, digital engine driving the future of the enterprise.
How can I rise to the challenge?
To truly earn the title of Digital CFO, several core finance functions must first be digitised and automated. These are likely to include:
- Transaction processing (accounts payable and receivable)
- Expense management
- Financial consolidation and reporting
- Budgeting and forecasting
- Audit and compliance workflows
Recent Sage Research
Sage published a research report titled “The Digital CFO” in 2022, based on a survey of 500 senior finance leaders from SMEs across the UK. It was taken in the shadow of the COVID pandemic, and the success (or otherwise) of CFOs in responding to the resulting upheaval was a core theme of the report.
The introduction by Jonathan Howell, Group CFO at Sage, said:
Finance teams are moving beyond being the “keepers of historical records” to supporting more value-driven activities…to aid better company-wide understanding.
He went on to close his forward by saying:
We can’t rely on historical data to predict future outcomes…we have to be more proactive in the way we use data and technology to create a more resilient business model. There’s simply no turning back.
Key findings and observations from the research included:
- The CFO’s #1 goal is driving the company’s digital transformation.
- While CIOs take the lead on digital strategy, CFOs must be closely involved in helping prioritise digitalisation initiatives and aligning these with the wider business strategy.
- A key is to identify areas where technology can deliver quick returns. Early successes can then be used to support bigger investments.
Or, as Jonathan put it:
Finance leaders who want to continue to deliver value must do so by embracing technology and automation, and communicating to stakeholders how these tools support better business results.
The role of Orchid Products
To take up the challenge, and gain some quick wins in the automation stakes, Sage 300 users can start by integrating add-ons from Orchid into their systems and processes. Here are just a few examples:
- Inter-Entity Transactions: Automatically generates offsetting entries, based on highly configurable rules, to keep related entities in balance.
- Inter-Entity Trade: Automates Sage 300 transaction flows when related entities trade with each other.
- Info-Explorer: A powerful, affordable BI tool supporting integrated analysis & budgeting. Gain in-depth insight into your business performance.
- Extender: A cost-effective way to configure, customize, and extend Sage 300. Configure notifications, trigger workflows, customize Sage 300 business logic without complex code.
- TeamWork for Sage 300: Configurable alerts, notifications, and approval workflows in a mobile or desktop chat-based interface.
