Part 8: Technology Enablement for Modern Finance
This is part 8 of my “Modern Financial Controller” series, documenting my journey from chartered accountant to strategic finance manager. I’m learning in public and sharing insights primarily drawn from David Parmenter’s work and other finance thought leaders.
Introduction
Technology has transformed the finance function more dramatically in the last decade than perhaps any other aspect of our work. As David Parmenter emphasises in his book “The Leading-Edge Manager’s Guide to Success,” finance leaders who fail to embrace technological innovation risk becoming irrelevant in the modern business landscape.
In this post, I’ll explore how finance managers can evaluate, implement, and leverage technology to elevate their team’s performance and strategic contribution to the organisation.
Evaluating Your Current Technology Stack
Before rushing to adopt new tools, Parmenter recommends conducting a thorough assessment of your existing technology infrastructure. This starts with:
1. Systems Inventory
Create a comprehensive inventory of all financial systems currently in use, including:
- Core accounting/ERP platform
- Financial reporting tools
- Budgeting and forecasting applications
- Data warehousing solutions
- Specialised applications (tax, treasury, etc.)
- Spreadsheets and manual processes
2. Pain Point Analysis
Parmenter suggests organising facilitated sessions with your finance team to identify:
- Which processes consume the most time?
- Where do errors commonly occur?
- Which tasks require the most manual intervention?
- What information requests from stakeholders are difficult to fulfill?
3. Technology Maturity Assessment
Against Gartner’s five-stage maturity model for finance technology:
- Basic - Fragmented systems, heavy manual processing
- Developing - Core systems in place, but limited integration
- Defined - Integrated systems with some automation
- Advanced - Highly automated with predictive capabilities
- Optimised - AI-driven, continuous innovation
Where does your finance function sit today? According to Parmenter’s research, most organisations remain stuck between stages 2 and 3, with significant opportunity for advancement.
Key Technologies for the Modern Finance Function
Based on Parmenter’s framework and supplemented by insights from KPMG’s Finance Technology 2025 report, here are the essential technology components for forward-thinking finance teams:
1. Cloud-Based ERP Systems
The foundation of modern finance technology is a robust, cloud-based ERP system. As Parmenter notes, “Cloud-based solutions offer faster implementation, lower total cost of ownership, and more frequent updates that keep pace with evolving business needs.”
Key capabilities to prioritise:
- Real-time reporting and analytics
- Process automation capabilities
- Mobile accessibility
- Integration flexibility with other systems
- Scalability to support growth
2. Advanced Analytics and Business Intelligence
According to McKinsey & Company’s research, finance teams that develop strong data analytics capabilities are 2.5x more likely to be viewed as valuable strategic partners by their organisation.
Key components include:
- Self-service dashboards: Empowering stakeholders to access financial insights without requiring finance team intervention
- Data visualisation tools: Transforming complex financial data into intuitive visual formats
- Predictive analytics: Moving beyond historical reporting to forecast future outcomes
Parmenter recommends starting with targeted analytics projects that directly address business pain points rather than attempting comprehensive analytics transformations.
3. Robotic Process Automation (RPA)
Deloitte’s Global RPA Survey found that 53% of organisations have begun their RPA journey, with an average cost reduction of 22% and significantly improved accuracy in finance processes.
Parmenter identifies these high-value RPA opportunities:
- Account reconciliations
- Journal entry processing
- Invoice matching and processing
- Intercompany transactions
- Compliance reporting
4. Integrated Financial Planning Tools
Moving beyond spreadsheets for planning and forecasting is essential for the modern finance function. Integrated planning tools enable:
- Rolling forecasts (as detailed in Part 4 of this series)
- Scenario planning and sensitivity analysis
- Driver-based modeling
- Collaborative budgeting across departments
5. Document Management and Workflow Systems
Parmenter emphasises that paperless finance operations are not just environmentally responsible but dramatically more efficient. Key capabilities include:
- Digital document storage with robust search functionality
- Automated approval workflows
- Electronic signature capabilities
- Audit trail documentation
Data Analytics Capabilities Every Controller Should Develop
According to Parmenter, financial controllers must develop their data analytics skills or risk becoming obsolete. The Financial Executives Research Foundation supports this view, finding that 90% of CFOs believe data analytics is essential to future finance team success.
Essential Analytics Skills
Data Cleaning and Preparation
- Understanding how to identify and handle outliers
- Techniques for dealing with missing data
- Methods for standardising inconsistent information
Statistical Analysis Fundamentals
- Correlation and causation differentiation
- Regression analysis for forecasting
- Variance analysis for performance evaluation
Data Visualisation Principles
- Choosing appropriate chart types for different data stories
- Effective dashboard design
- Visual hierarchy and emphasis techniques
SQL Fundamentals
- Basic query writing
- Data filtering and aggregation
- Joining multiple data sources
Business Intelligence Tool Proficiency
- At least one mainstream BI platform (Power BI, Tableau, Looker)
- Dashboard creation and distribution
- Alert configuration for exceptions
As Parmenter notes, “The controller who can translate complex data into actionable business insights will always have a seat at the strategic table.”
Implementation Strategies That Won’t Break the Bank
Parmenter emphasises that technology implementation doesn’t have to be an all-or-nothing proposition. His phased approach includes:
1. The Pilot Approach
Start with small, high-impact projects that demonstrate value quickly. For example:
- Automate a single reconciliation process
- Create one dashboard for a key business metric
- Implement RPA for a repetitive task
2. The “Land and Expand” Strategy
Begin with a limited deployment to a specific team or department, refine based on feedback, then expand across the organisation.
3. The “Quick Wins” Portfolio
Identify 5-10 technology initiatives that can be implemented in under 90 days with minimal investment. According to Parmenter, these quick wins build momentum and credibility for larger transformation efforts.
4. Leveraging Existing Tools
Before investing in new technology, Parmenter suggests exploring untapped capabilities in your existing systems. Many organisations use less than 50% of their current systems’ functionality.
5. Cloud-Based Subscription Models
Rather than large capital expenditures, leverage SaaS solutions with monthly subscription costs that can scale with your needs.
According to Parmenter: “The most successful finance technology implementations are those that balance ambition with pragmatism, focusing on delivering tangible business value rather than technology for technology’s sake.”
Future Trends: AI, Machine Learning, and Automation in Finance
While current technology adoption is crucial, forward-thinking controllers must also keep an eye on emerging trends. Based on insights from both Parmenter and Accenture’s Finance 2025 research:
1. Artificial Intelligence in Finance
AI applications are rapidly evolving from experimental to essential:
- Advanced forecasting: Machine learning models that incorporate external economic indicators and market signals
- Anomaly detection: AI systems that identify unusual transactions or patterns that warrant investigation
- Natural language processing: Converting unstructured data (contracts, emails, news) into actionable financial insights
2. Blockchain for Financial Transactions
While still emerging, blockchain technology promises to transform:
- Intercompany transactions and reconciliations
- Supply chain financing
- Contract validation and enforcement
- Audit trails and verification
3. Continuous Accounting
As described by BlackLine founder Therese Tucker and endorsed by Parmenter, continuous accounting distributes close activities throughout the month rather than compressing them into period-end. This approach:
- Reduces period-end workload
- Provides more timely information to stakeholders
- Improves work-life balance for finance teams
4. Finance Digital Twins
Emerging from industrial applications, digital twins in finance provide:
- Virtual models of financial operations
- “What-if” scenario testing
- Process optimisation simulation
Conclusion: The Technologically Empowered Controller
As David Parmenter emphasises throughout his work, technology is not an end in itself but a means to elevate the finance function from transactional processor to strategic business partner.
The successful controller doesn’t need to be a technology expert but must be a savvy technology consumer - understanding business needs, evaluating solutions pragmatically, and implementing thoughtfully.
Self-Assessment Questions
- Where does your finance function sit on Gartner’s five-stage maturity model?
- Which manual processes in your department consume the most time and are most prone to error?
- Do you have the analytics capabilities to answer your organisation’s most pressing business questions?
- What untapped functionality exists in your current systems?
- How well does your team embrace technological change?
Action Items
- Conduct a technology maturity assessment with your team
- Identify your top three “quick win” automation opportunities
- Schedule a demo of one cloud-based planning solution
- Enroll in an online data analytics course (I recommend [specific course])
- Identify one finance process to pilot an RPA solution
References:
- Parmenter, D. (2019). The Leading-Edge Manager’s Guide to Success. Wiley.
- KPMG. (2021). Finance Technology 2025 Report.
- McKinsey & Company. (2022). The Analytics-Powered CFO.
- Deloitte. (2020). Global Robotic Process Automation Survey.
- Accenture. (2021). Finance 2025: Digital Transformation in Finance.
- Tucker, T. (2018). The Continuous Accounting Revolution. BlackLine Press.