Peter Worn, joint managing director at finance technology specialist Finura Group, advises taking a measured approach to new tech investment.
“The guidance we give to firms is that most of the core accounting technologies they use today will no doubt have some AI features in the not-too-distant future, or they already have them, but you just don’t know it,” he says.
“We strongly advise firms that it is okay to wait before getting too deep into an emerging bit of technology, which could be quite disruptive to deploy.”
Baxter says there are common pitfalls in finance tech adoption.
“A tool that operates in a silo and can’t connect with core systems generally creates more work, not less,” she says. “Can it demonstrate a return on investment in a practical way, such as hours saved or tasks removed?
“Also, what training and support is included as well as implementation, and where is the support located? If a support centre only operates when you’re asleep, it is probably not that useful.”
Choose technology that can grow with the business, Baxter recommends, “otherwise, you’ll risk having repeated changeovers, extra costs and, at the end of the day, lost productivity and efficiency. That is not good for you or your clients”.
Bales suggests considering the value technology can create for the business.
“In the finance sector, for example, you evaluate a number of risk scenarios prior to making a decision,” he says.
“The gold standard in 2010 was to do 10 scenarios. Today, you can do a hundred million scenarios, which you could never do before because of a limitation of resources.
“So, we should be thinking about, and challenging ourselves to ask, ‘If we have no limitation on resources, how do we ask bigger, more complex, more value-creating questions within our work that we could never ask before?’.”
What to look for in a tech vendor
Sorting the substance from the marketing spin requires a frank conversation with tech providers.
“Can they show their knowledge of best-practice or cutting-edge use cases for your particular industry or role?” asks Bales.
“Do they have any other customers doing things in a more innovative way than you? What you’re typically looking for is part inspiration and part education in terms of the potential of their technology for your company, role or business unit.”
Worn recommends asking questions about the company that makes the tech.
“It is a good sign if at least some of the founding team have a background in accounting, because it is important to have some professional affinity, experience and understanding of the industry, or even just an awareness of the ethics and governance requirements,” he says.
Davern suggests asking to speak to other customers about their experience with the technology.
“Don’t be the guinea pig unless you have a thorough understanding of the technology and the benefits it will bring to your business,” he says.
After you have made your tech investment, Baxter says training is a vital ingredient for its success. Providing training, managing resistance to change and explaining why the tools matter are essential. After all, “tech fails if the team doesn’t adopt it”.
Four quick tips
- Technology investments in accounting should be driven by clear business needs, not by trends or hype.
- Businesses using digital tools like AI and automation are significantly more likely to report profit increases.
- Choosing the right tech requires understanding the problems it solves and ensuring it integrates well with existing systems.
- Successful tech adoption depends on vendor credibility, user training and team buy-in.
