UK CFOs and FDs split on the need for automation, survey shows
A new survey shows that while automation within financial departments is becoming necessary, CFOs and FDs across the UK disagree on how soon these changes should take place.
A new survey shows that while automation within financial departments is becoming necessary, CFOs and FDs across the UK disagree on how soon these changes should take place.
Financial directors and CFOsĀ are quickly approaching the tipping point in the industryās automation journey, according to a new BDO-commissionedĀ survey.Ā
The survey, āNew Economy: Investing in Automationā,Ā taskedĀ YouGovĀ byĀ interviewing over 200 CFOs and financial directors fromĀ a range of businessesĀ in the UKĀ throughoutĀ September 2019.Ā
Across England and Scotland,Ā an average ofĀ 86.6%Ā ofĀ businesses have automated a key part of theirĀ organisation,Ā with Yorkshire and the Midlands each leading the charge with an 88% automation rate.Ā
Statistics also showedĀ that, on average, 8.6% of total companyĀ spend went towardĀ automation, with professional services leading the way in both product investment and employee training.Ā
FinancialĀ leaders have been relatively quick to invest in automation-based training for employees,Ā andĀ two-fifths ofĀ surveyedĀ CFOs and financial directorsĀ (FDs)Ā have alreadyĀ establishedĀ automation-focused upskilling and training.Ā
However,Ā not all areas of the UK are investing in training at the same rate.Ā For instance,Ā the Humber and Yorkshire regionsĀ have nearlyĀ 50% investment rates, compared to a 34% investmentĀ rateĀ in Scotland.Ā
Overall, the surveyĀ found that within the accountancy and financial processes sector, 50% of businesses have plans to automate parts of their work within the next year.Ā With companiesĀ making these dynamic changes,Ā there is bound to be a learning curve.Ā
Neil Williams, partner at BDO, said: āProfessional services firms may have not been as visionary and enthusiastic as others in the past, but they are no longer the technology sceptics they onceĀ were considered to be.Ā
āCFOs are clearly optimistic about the business potential of automation and technology, investing at levels about the national average in both staff training and new technologies.āĀ
This investment shows an encouraging trend, so long as CFOs and FDs follow through onĀ staff training investments.Ā
Itās true thatĀ automation softwareĀ savesĀ timeĀ whenĀ correctly implemented,Ā butĀ employeesĀ will initially need extraĀ time to understand and learn the software. This learning curve requiresĀ managerial oversight and planningĀ so that employees can be properlyĀ upskilledĀ and the software can be used effectively.Ā
The data is clear that while most businesses agree they need to embrace automation, theyĀ continue toĀ delay their automation journey.Ā BasedĀ on BDOās findings, 42% of retail-focused CFOs and FDsĀ called automation a top priority for their five-year plan, but only 15% of the same audience called it a priorityĀ to address within the next year.Ā
However, inĀ the NorthĀ West region,Ā just 5% ofĀ CFOs and FDs calledĀ automation their number-one priority for the yearāonly going up to 20% for the next five years.Ā
Thus, thereĀ seems to be a disconnect within the financial industryĀ overĀ when these changes need to take place.Ā While some financial professionals areĀ ready to embrace automation now, others may be wary ofĀ cost, training, andĀ how it will change their business.Ā
This is further complicated by the opposing views on automationās effect on jobs within the industry. While 22% of those surveyed believed that automation could negatively affect jobs,Ā 21% believed that it would create more jobs, indicating thatĀ CFOs and FDs are quickly approaching a crossroads.Ā
This industry shift may come from multiple sources, not least of which is a movement of cultural change as more companiesĀ implementĀ automationĀ solutions and showcase its benefits.Ā
āCultural change is a broad subject with no āone size fits allā solution,ā explained Nick Carter-Pegg,Ā partner and Head of Professional Services at BDO. āBreaking it down, it comprisesĀ of the new skills needed, the embedding of new ways of working and changing how investment decisions are made.Ā
āUltimately, itās about a shift in the digital mindset of professionals, both collectively and individually, and it will be critical for that change to be led from the top.āĀ