Embracing digital transformation in accounting and finance

Digital transformation involves the integration of digital technologies and business processes. Recent developments in digital technologies have provided organisations with the tools to embark on digital transformation of a wide range of business processes and activities.

"Digital transformation in the finance and accounting industry has been accelerated by the onset of the COVID-19 pandemic that reshaped business models and organisations globally. For many organisations, the impetus was clear - digital adoption and transformation were major enablers for businesses to survive and thrive."

Organisations that can leverage on technology to digitally transform themselves stand to put themselves at a significant competitive advantage relative to their competitors.

This raises the following questions. How does this affect CFOs and finance leaders? What are the ways that organisations have adopted technology in the last year? How can organisations ensure sustainable digital transformation?

This publication, Embracing Digital Transformation in Accounting and Finance was created in partnership with the Singapore Management University. It brings together industry knowledge from experts in accounting, business and academia.

It shares practical applications of digitalisation on the different aspects of accounting and finance, and how organisations can develop a digital transformation strategy.

Key takeaways for finance executives

• Digital innovation: a catalyst and enabler of achieving business sustainability
• Digital innovation can be both a catalyst and enabler of business sustainability.
• Organisations can leverage on the potential of digital innovation to meet their sustainability goals.
• Data analytics in audit
• Analytics, when designed and executed right, can greatly improve the quality, efficiency and value of financial statements audits.
• Audit firms must anticipate the potential pitfalls of analytics and develop a plan to address them.
• Artificial intelligence (AI) and machine learning in digital finance
• Adoption of AI will allow accountants to devote more time to analysing and interpreting data to support strategic decision making and the execution of business plans.
• Perceived barriers to wider adoption of AI are cost, insufficient infrastructure and poor data quality.
• Cybersecurity: a catalyst for business growth in the digital age
• Establish a positive cyber security culture within your organisation.
• Cybersecurity can be your strategic competitive advantage.
• How blockchain can enable digital transformation in financial services
• As a digitised, secure and tamper-proof ledger, blockchain can enhance accuracy and information-sharing in the financial services ecosystem.
• The actual applications of blockchain are still evolving. Financial institutions need to take a long-term view to maximise its utmost potential.
• Redesigning finance functions with robotic process automation (RPA)
• RPA has the potential to perform repetitive and time-consuming tasks with greater efficiency and accuracy than humans, freeing staff up for higher-value and more interesting tasks.
• RPA can be integrated with other emerging technologies and techniques to perform more complex tasks requiring some form of cognitive ability or high-level thinking.
• ERP and cloud technology: powering finance for the next era of growth
• Building a digital core and a cloud strategy should be a priority.
• CFOs must adopt a “cloud-first” mindset and encourage its adoption across the enterprise.
• Tax implications of digital transformation: a Singapore perspective
• Tax and non-tax incentives are available in Singapore to support business digitalisation efforts.
• Digital transformation introduces novel tax implications and challenges, both locally and globally. Businesses need to keep abreast of tax changes.
• Digital forensics investigations
• New digital tools and discovery methods complement existing forensically-sound approaches to forensic investigations.
• It is important for investigators and accounting professionals to have familiarity with digital options available when conducting and managing an investigation.
• Creating a digital strategy with the human touch
• Digital, Data, and Design, the “three-Ds”, can help an organisation to propel its digital strategy.