For more than 30 years, corporate discussions have focused on digitalization in all of its manifestations. But, it has only been in the last few years that businesses have really realized the value of a sound digital transformation plan. Implementing a digital strategy is a great approach to increase operational effectiveness, serve customers, and deliver advanced analytics while also enhancing staff satisfaction.
When it comes to funding their digital transformation initiative, many departments still have difficulties. Particularly accounting teams may have benefited greatly from a digital transformation program but still face resistance.
Six issues accountants have with the digital transformation
Currently, 70% of programs including digital transformation are unsuccessful.
Very often, problems don’t come from the technology used, but rather from a lack of planning. Only a sound strategy and organizational support can ensure the success of a digital transition.
In addition to selecting new technology, there are various other factors.
The causes listed below are why accounting departments find it difficult to achieve significant digital transformation:
The absence of an effective digital transformation plan
A digital transformation initiative’s biggest killer is the absence of a strategy. It is insufficient to just decide to invest in cutting-edge analytics or AI. It’s crucial to have a comprehensive plan that covers KPI definition, training, implementation, and maintenance.
This framework for digital transformation should ideally also assist with an organization’s primary business plan. Combining departmental goals with the overall business strategy not only makes accounting a major stakeholder but also increases the likelihood of buy-in and funding.
No team buy-in
Both the management and accounting departments need to be on board. The strategy will enhance the working environment for accountants, and they should be confident in this. The management team will also be interested in estimations of how the digital transformation project will effect revenue.
It can be helpful to develop a narrative that contrasts the present, unsuccessful operations with the suggested adjustments in order to help both parties grasp the possible benefits of the new digital experience. Highlight projected savings if at all possible. If cost savings cannot be determined, it is preferable to demonstrate how the existing system lacks complete visibility, making it difficult to effectively budget and locate leakage.
It’s critical to have the accounting team’s approval before implementing any new technology. Ask for their opinions on any feature or demo. The AR/AP crew will ultimately be the ones using the new software.
Unresolved skill deficiencies
Also, not every employee will be familiar with the new digital channel and may be hesitant to alter manual procedures. It may be possible to lessen resistance to the new procedure by incorporating incentives into training sessions, such as bonuses or paid time off. The accounting team can feel cared for if issues arise by selecting technology vendors with a responsive and lively support team.
Not accounting for cybersecurity
New dangers, primarily cyberattacks, are brought on by digitization. Cybersecurity should be a consideration in any strategy for digital transformation. The team should examine their cybersecurity standards and lay out what a company will be responsible for before selecting new technology in consultation with their IT department and potential providers.
A thorough security strategy is guaranteed when the IT team is kept informed throughout the decision-making process.
Too much change
A department should not be changed entirely at once since it will go horribly wrong. Moving too quickly can overwhelm staff, throw the budget into disarray, and lead to the omission of crucial measures. It can be best to begin with a smaller area in AP or AR before automating the entire accounting department, for instance, in a small corporation. They can proceed to the following goal once the digital channel is configured and operating as it should.
Starting slowly is particularly crucial for accounting departments. The digital transformation project should be thoroughly plotted, tested, and optimized because accounting employees interact with people from different departments and external vendors while also working with sensitive data.
The most labor-intensive manual processes should be implemented first in accounting departments. Without affecting the normal workflow, this will free up time for further adjustments.
Lack of easily accessible support is another potential problem. An organization’s IT personnel cannot solve every problem that arises when implementing digital technology on their own.
The customer and employee experience can be greatly improved by working with digital technology vendors who are approachable and offer consistent assistance, including training and a help desk. A responsive support staff fosters confidence between your company and the provider and aids in the better acclimatization of the accounting teams to the new procedures.
Your digitalization should be automated.
For any accounting staff, achieving digital transformation goals may be a breeze with the correct assistance and plan. In addition to the ERP software installation and training we offer at Growth Stack, our clients also benefit from our prompt customer service.
Learn how accelerating your digital transformation project can be accomplished by scheduling a demo with us right away.