John Gronen, Chief Financial Officer at Yooz, an international Accounts Payable (AP) automation solution provider.
Why accurate, connected financial data drives business success
The growing importance of data confidence in finance
Accurate, real-time financial data has become essential to making sound decisions and driving strategic growth in the economic landscape of 2024. Yet, many finance leaders face significant challenges in achieving data confidence, due to outdated processes and fragmented systems.
The growing push towards e-invoicing in the UK highlights the increasing importance of structured, accessible financial data. Discussions around e-invoicing first emerged in 2009, following a request from the European Commission to establish e-invoicing forums.
However, the need became more urgent in 2018 with the introduction of the Making Tax Digital (MTD) initiative, which underscored the risks of unstructured, siloed data. Now, with HMRC announcing the launch of a public consultation on the subject in 2024, a shift towards mandatory e-invoicing in the UK seems likely, following the path set by France, Belgium and other nations.
Why finance leaders need integrated solutions
The challenges of fragmented data systems are underscored by the sheer volume of invoices globally. A recent Billentis report states that over 560 billion invoices are processed annually worldwide, yet only about 20% of these are e-invoices. As governments increasingly mandate e-invoicing, this figure will continue to grow, amplifying the need for digital solutions that can accurately structure, share and analyse financial data across organisations.
Integrated solutions play a crucial role in delivering real-time data, which offers finance leaders up-to-the-minute visibility into cash flow, outstanding invoices and financial risks. Unlike static reports, real-time data ensures finance teams can respond immediately to evolving conditions, such as fluctuating market trends, regulatory changes, or payment delays, enhancing agility and ensuring more precise forecasting.
Advances in technologies like AI, Machine Learning and Smart Data Extraction have resulted in the existence of solutions that are able to meet the required standards, but nevertheless the industry still needs to work hard to continue to adapt to the evolving landscape.
For finance departments, leveraging these technologies in integrated solutions is key to creating consistent, accessible and reliable data, a foundation for decision-making and growth.
The consequences of ‘data chaos’
Unstructured data often contains inconsistencies and errors, making it difficult to derive reliable financial insights. For finance leaders, the stakes are high: decisions based on flawed data can lead to compliance risks, strained supplier relationships and lost revenue, due to missed payments and penalties. What’s more, they can also result in reputational damage.
Finance leaders need confidence in their data and finance software to make reliable, data-driven decisions that are tailored to their organisation. A recent Gartner report found that 76% of CFOs consider improved financial metrics, insights and storytelling a top priority. Access to accurate data in real-time is the foundation for achieving these goals.
Transforming data accuracy into a strategic advantage
Reliable data not only helps CFOs identify savings and improve cash flow but also strengthens compliance, streamlines processes and increases investor confidence. For example, having easily accessible, up-to-date figures enables finance teams to forecast cash flows, avoid costly penalties and even secure early payment discounts, resulting in better supplier relationships and overall financial outcomes.
Moreover, accurate data frees finance teams from hours of manual verification, allowing them to focus on strategic initiatives that drive growth and innovation. Today’s CFOs don’t just need numbers; they need connected, reliable data to anticipate challenges and seize new opportunities confidently.
A roadmap to data confidence
To move towards data confidence, finance leaders should consider these key actions:
- Assess data quality: Begin with an audit of existing financial data and processes to identify gaps, inconsistencies and potential risks.
- Adopt integrated solutions: Implement finance software that connects systems, ensuring consistency and accessibility across departments.
- Leverage advanced analytics: Use AI and Machine Learning tools to automate error detection, streamline data categorisation and support data-driven insights.
- Prioritise compliance: Stay ahead of regulatory changes, such as e-invoicing mandates, to ensure ongoing compliance and readiness for new standards.
Data confidence is essential for business success
Ultimately, data confidence transforms financial data from a potential liability into a powerful strategic asset. Accurate, accessible financial data doesn’t just streamline operations, it empowers finance teams to lead with foresight, fostering sustained growth and resilience.
In a landscape where reliable data underpins every strategic decision, data confidence isn’t optional; it’s the foundation of modern business success.
