In organisations everywhere, the responsibility for data management in all its forms has primarily fallen heavily on the shoulders of the IT department. However, the widespread adoption of cloud-based and ‘as-a-service’ software delivery models has increasingly shifted control and oversight for various datasets away from IT teams. Today, other non-IT departments, or even individual members of staff who – on the face of it – don’t need a technical background, are procuring and running software.
One practical example is in the tax department. Today’s tax professionals are faced with managing complex data processes for reporting and compliance. No longer are spreadsheets enough to deliver accurate reporting or address the challenge of how to use data most effectively for business advantage. This needs specialist software, and tax professionals must work with IT experts who have the know-how to make the right procurement decisions that match business initiatives whilst serving the tax department’s needs.
This is part of a broader trend within the financial sector, traditionally more cautious in embracing new technologies compared to other industries. For instance, many financial organisations are in the early stages of cloud migration and are still reliant on legacy IT systems, while other sectors have been comfortably operating in cloud environments for some time. The financial sector’s hesitance is understandable, given the rigid regulatory landscape and the sensitivity of the data involved. For these organisations, maintaining compliance, ensuring accuracy, and safeguarding cybersecurity are paramount. While they recognise the potential benefits of emerging technologies, they generally approach adoption with a measured, risk-aware mindset.
The adoption of automation technologies is a case in point. Despite its relatively slow start in adopting automation, the finance function is increasingly leveraging this technology, driven by the tangible benefits it offers. With its high volume of administrative and repetitive tasks, the financial services industry stands to gain significantly from automation, with Robotic Process Automation (RPA) helping to streamline processes, reduce human error, and enhance efficiency. As a result, RPA is now prevalent in leading accountancy firms and numerous large companies in general.
Redefining IT’s role as finance goes digital
In this context, the deeper integration of automation technology in finance means the IT department’s role needs to be redefined. As far as many finance teams are now concerned, IT professionals are increasingly becoming vital facilitators and advisors, offering insights and guidance that help them maximise the value of emerging automation and AI technologies.
While finance teams have a clear understanding of the day-to-day technologies that benefit their operations, the IT department should play a major consultative role in the procurement process. In particular, IT professionals can provide guidance to ensure technology aligns with company policies, provide ongoing support and share insights based on the company’s overarching IT infrastructure. Post-implementation, the IT team remains a key ally, ensuring that the technology operates optimally and adheres to stringent security and data privacy standards.
Without this level of integration, the potential of emerging technologies may not be fully realised, and organisations risk falling behind in an increasingly competitive and digital-first business landscape. Another concern is that the absence of effective integration between IT and finance can lead to a fragmented approach to cybersecurity and data governance, exposing organisations to increased risks in an era where data breaches and cyber threats are commonplace. Clearly, IT’s expertise in establishing robust security frameworks and ensuring compliance with data protection regulations is crucial in safeguarding the organisation’s assets and reputation.
The intersection of finance and technology also highlights the growing need for digital skills, and with the finance industry experiencing an ongoing skills gap, training and collaboration between the two teams are essential to ensure long-term success. The arrival of Generation Z into the workforce, known for their digital fluency and tech-savvy experience, promises to bridge this gap further. These new professionals, comfortable with cloud technologies and possessing a tech-native mindset, are poised to drive innovation in the sector.
But there is still work to be done if finance and tax teams are to address these various challenges. In particular, organisations must foster a culture of continuous learning and adaptability, where IT and finance professionals work together towards common goals. By doing so, they can leverage their shared expertise to drive innovation, optimise processes and create a resilient, forward-thinking organisation that is well-equipped to thrive in the digital age. This convergence of skills and perspectives not only enhances operational efficiency but also cultivates a more strategic and proactive approach to technology adoption, ultimately contributing to the organisation’s wider success.
