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4 Key Drivers Pushing Manufacturing CFOs Toward Automation

Written by Sunjay Agtey | Jan 17, 2024 2:09:16 PM

Accelerating Finance in Manufacturing: Why 2024 is the Year for CFOs to Embrace Automation

In the ever-evolving realm of manufacturing finance, CFOs are confronted with unprecedented challenges amid economic uncertainties. When speaking with CFOs of manufacturing companies during the past 12 months we found over 75% expressed interest in implementing increased automation and digital technologies in their financial processes. In the post below, we will explore what is driving push towards technology adoption, particularly in the manufacturing sector.

4 Key Drivers Pushing Manufacturing CFOs Toward Automation

1) Universal Adoption - Aiming for Touchless Close: A recent Gartner survey provides revealing insights, indicating that 55% of CFOs surveyed aspire to achieve a touchless financial close by 2025. The survey further unveils key objectives:

  • 86% aim for a faster, real-time close
  • Over 60% strive for an error-free close
While a touch-free close remains an ambitious target, many CFOs have successfully attained real-time efficiency by standardizing processes and introducing automation. This shift not only leads to significant time and cost savings but also positions organizations as top performers, spending three times less on finance functions.


2) Employee Recruitment and Retention: Responding to another critical CEO priority — recruiting and retaining top talent — CFOs recognize the pivotal role of technology. If you have been watching tv lately or listening to any podcast you probably have seen or heard an ad for Indeed. CFOs and their owners are prioritizing digital transformation acknowledging the crucial role of technology in attracting and retaining employees. The shift from data aggregation to providing strategic insights in finance and accounting positions is only achievable through the implementation of automation for repetitive tasks.

The current shortage of accountants entering the workforce intensifies the need for technology investment, with a reported 17% decline in the accounting profession and fewer graduates available to fill vacancies.


3) Technology and Digital Transformation: CEOs of manufacturing companies know to stay relevant in the front of the house and back of the house they need to lean into technology. CEOs, CFOs, and the teams who start to embrace Manufacturing 4.0 will see the biggest gains in 2024.

 

4) Navigating Economic Volatility: The past three years have witnessed unprecedented economic volatility, necessitating real-time insights for proactive decision-making. Challenges such as supply chain disruptions, inflation, and labor shortages underscore the critical need for accurate, real-time financial insights. 

Traditional accounting practices, often associated with manual processes and disconnected data sources, prove incompatible with the demand for real-time, accurate insights.

Nimbello's Solution: Mastering Complexity with AP Automation

As manufacturing CFOs grapple with mounting data complexities, talent shortages, and the demand for real-time insights, Nimbello's AP automation emerges as the strategic solution. By digitally transforming core financial processes, Nimbello empowers manufacturing finance teams to eliminate risk, consolidate financial data, and provide decision support for the broader CFO organization.

Nimbello stands as a committed partner in the journey of mastering the manufacturing finance landscape, ensuring CFOs not only meet but exceed the evolving demands of the industry in 2024. If you want to learn how we can help your manufacturing company, contact us today