Accounting software trends CFOs and CIOs should track now

1. AI-assisted close

The month-end closing process has historically been a labor-intensive ordeal that requires lengthy manual reconciliations, offline worksheets and last-minute entry adjusting. Today, AI tools are helping accelerate the closing process by using machine learning (ML) to automate journal entries, detect anomalies and perform intercompany eliminations.

For example, Oracle's Fusion Cloud ERP now includes AI-driven close modules that use predictive algorithms to flag discrepancies in real time. SAP's Joule copilot enables users to perform natural-language queries on financial data, while Workday's adaptive intelligence capability automates revenue recognition using past patterns in customer contracts. Technology from emerging AI-native startups such as Rillet can integrate with external platforms, such as Salesforce and Stripe, so ledgers are automatically updated.

AI-assisted closes can reduce processing times and improve visibility as well as reporting.

CFOs should sign off on pilots of AI tools on high-volume processes, such as accounts payable. Focus on shortening closing cycles, then build a broader roadmap based on results and lessons learned.

2. Predictive analytics and real-time dashboards

Executive dashboards have come a long way in recent years, with real-time analytics capabilities enabling increased visibility.

Now, predictive analytics tools are enabling more accurate cash flow forecasts, fraud detection and scenario planning by referencing historical and external data. Predictive analytics are also helping companies gain visibility into metrics such as burn rates and liquidity ratios.

NetSuite offers embedded ML models for revenue forecasting, while Xero's analytics hub aggregates data from various sources to enable dashboard customization.

CFOs can benefit from predictive analytics and real-time dashboards increasing a company's agility, while CIOs can benefit from the technology making employees more self-sufficient, thereby reducing delays associated with workers reaching out for help.

A good place for CFOs to start with predictive analytics and dashboards is launching training for finance teams on how to interpret analytics and reference real-time intelligence to improve their own decision-making.

3. ESG/sustainability tools

Some accounting software is now embedding sustainability metrics in financial systems, with capabilities including automation of carbon footprint calculations and supply chain ethics scoring, among others.

If a CFO’s company is prioritizing environmental, social and governance (ESG) metrics, the CFO should set KPIs based on their company’s sustainability goals. For example, some KPIs might be based on emissions or ethical sourcing.

4. Composable architecture

Composable architecture is the separation of application components into individual parts. This makes it easier for finance leaders to build custom workflows, and the cloud-native approach enables plug-and-play integrations for blockchain ledgers and AI agents, among other tools.

Modular, composable applications can make companies more agile and can simplify the updating of business processes.

CFOs should first collaborate with CIOs to lay out use cases, then seek out low-code platforms that enable rapid prototyping. Starting small is best, then expansion can follow after evaluating outcomes.

Executive takeaway

Finance and tech leaders should work together to audit existing tech stacks against these trends, then use a portion of their resources on pilot projects.

Compliance, risk management and data security are more important than ever, so decision-makers should carefully monitor vendor roadmaps for AI guardrails and visibility into data origin.

James Kofalt spent 16 years at SAP working with SME business applications and was a product manager for integration technology at Microsoft's Business Solutions division. He is currently the president of DX4 Research, a technology advisory practice specializing in ERP and digital transformation.