Blockchain technology Potentially, one of the most disruptive technologies to develop since the launch of the commercial Internet, the blockchain (or simply “blockchain”) is transforming business. It is also impacting CFOs in numerous and unexpected ways.
Smart CFOs are consulting with top blockchain developers to strategize methodologies to best leverage this exciting new technological frontier to improve bottom-line metrics.
Transforming the Traditional Role of the CFO
Chief Financial Officers are primarily concerned with the finances of a corporation. The main purpose of the CFO is to develop, implement, and promote sound corporate financial strategies that result in a thriving, solving business.
We can further break down some of the main tasks of a CFO as follows:
- Instituting trust and accountability
- Analyzing the numbers
- Aligning finance with the strategic objectives of a company
- Creating innovative business strategies
- Providing communication and transparency
The challenges CFOs face haven’t changed that much in recent years. CFOs still need to streamline processes, improve efficiency, increase visibility (in part to enhance accountability), and manage challenges such as mergers or downsizing.
What has changed is the technology that can help a CFO in achieving these tasks, and blockchain development hold huge promise.
How Blockchain Technology Can Supercharge CFO Initiatives
Ernst and Young (EY) did a study showing how blockchain technology could revolutionize the job of the CFO. These beneficial advancements run the gamut, from enhancing cybersecurity to helping manage the supply chain better. Here are a few of the ways that blockchain development can impact CFO roles:
1. Instituting Trust and Accountability
The most revolutionary aspect of the blockchain is the ability to record transactions permanently while maintaining privacy. This main benefit of the blockchain has tremendous applications when it comes to financial accountability and trust.
2. Analyzing the Numbers
As a CFO, you are driven by data, and having access to data quickly is critical. Blockchain technology can offer a distributed ledger where any copy, no matter where it’s located, gets an instantaneous update with the latest information. This provides an unparalleled ability to offer the CFO real-time reporting of every transaction.
3. Aligning Finance with the Strategic Objectives of a Company
With real-time tracking and instant sharing of information, the blockchain can transform business silos into synergistic collaborations. This better empowers a company to get everyone on the same page to achieve business goals.
4. Creating Innovative Business Strategies
Consider the possibilities offered by blockchain applications: instant transmission of data, distributed ledgers, better transparency, and more. Crafty CFOs will be finding ways to utilize this to get an edge in the marketplace.
5. Providing Communication and Transparency
Communicating to stakeholders and shareholders, in and out of the company, is important to generate trust and confidence. Transparent blockchain technology can easily enable this.
Getting Started with Blockchain Technology
This is an exciting time to be a CFO. The blockchain is a true technological disruptor. With the help of a strong blockchain consultant, the full power of this new technology can be leveraged to totally revolutionize a company’s finances and business development.