SINGAPORE: A recent survey commissioned by digital finance expert BlackLine has been revealed that a hefty 41 per cent of C-suite executives and finance and accounting professionals in Singapore are skeptical about the accuracy of their organizations’ financial data.
The study sheds light on the prevalent lack of confidence in cash flow visibility, with all surveyed professionals admitting they do not completely trust their organization’s oversight of cash flow.
The survey, conducted among Singaporean executives, also disclosed that 45 per cent of senior finance and accounting professionals harbor doubts about the financial data they are currently working with. This skepticism regarding financial data accuracy raises concerns about the potential impact on business operations, as 56 per cent of respondents expressed worry about the extent to which decisions are being made based on inaccurate or outdated information.
The study identified manual processes and human error as the primary culprits behind the lack of confidence in financial data. More than two-thirds of respondents attributed their skepticism to the volume of day-to-day work and the associated stress, leaving little room for proper financial planning and analysis. These factors make organizations vulnerable to errors that can significantly impact decision-making processes.
To address the challenges posed by manual processes, the majority of respondents advocated for the adoption of new technologies, like cloud computing and generative AI, to streamline financial operations. The call for embracing modern, next-generation solutions echoes the sentiment that automating cumbersome processes is crucial for enhancing confidence in financial data.
Stressing the critical role trust in data plays in effective decision-making, particularly in the face of external events that are challenging to predict or control, BlackLine senior leader Nikhil Parambath said, “Trusting the data organizations work with is critical for effective decision-making, not only for the office of the CFO but for the entire business ecosystem.”
Mr Parambath, who serves as the company’s Regional Vice President of Asia, advocated for technologically advanced solutions and added: “When we look at what is undermining confidence in financial data, we repeatedly find that ineffective, manual processes are the problem. Companies need to embrace modern, next-generation solutions that automate cumbersome processes.”
As Singaporean business leaders grapple with the accuracy over their financial data, the survey highlights the urgency for organizations to invest in technological solutions to ensure the reliability of financial information and support more informed decision-making processes.