Firms Seek Integration to Strengthen Finance, Accounting

Enterprises are seeking integrated finance and accounting software platforms for greater automation, precision and insight as AI and other advances transform the options available in this segment, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens global Finance and Accounting Platforms report finds that the need for faster, more efficient financial reporting and decision-making is forcing companies to replace specialized, siloed tools with software-as-a-service (SaaS) platforms that handle multiple functions and can be integrated with complementary applications. AI and machine learning features have brought powerful new capabilities to these platforms, while vendors are investing in generative AI (GenAI) in search of the next big breakthroughs.

“The finance and accounting SaaS sector is investing in next-generation technologies to solve age-old business problems,” said Robert Stapleton, ISG partner, Business Outsourcing Services. “This extends to GenAI, even though its operational effectiveness is still uncertain.”

Organizations are more likely to benefit from GenAI in strategic functions, such as record-to-report (R2R) and financial planning and analysis (FP&A), than in transactional applications such as procure-to-pay (P2P) or invoice-to-cash (I2C), ISG says. By processing large volumes of data and quickly recognizing patterns, GenAI might lead to better predictive models and let companies generate more personalized financial insights with less human intervention.

Modern enterprises have complex, interrelated finance and accounting requirements, including the growing need to quickly understand and report on a wide range of financial metrics, the report says. Different functions, including I2C, P2P, R2R and FP&A, need to work together by tapping into large, shared data sets in real time. Through mergers, acquisitions, and partnerships, providers that once focused on specific functions are now expanding their capabilities to deliver more comprehensive solutions.

A growing recognition that each company’s finance and accounting challenges are unique has led providers to adopt a more client-centric approach, the report says. Enterprises and providers are collaborating to craft solutions that can become long-term assets with tangible business benefits.

“In finance and accounting, one size doesn’t fit all,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Providers are working more closely with clients to fine-tune solutions to their needs.”