Firms Seek Integration to Strengthen Finance, Accounting
Enterprises are seeking integrated finance and accounting software platforms to enhance automation and insight, with a focus on AI and machine learning technologies. The report highlights the shift towards SaaS platforms that offer multi-functional capabilities and integration with complementary applications. GenAI is being explored for strategic functions like R2R and FP&A, potentially leading to improved predictive models and personalized financial insights. Providers are adapting to unique client needs, expanding capabilities through mergers, acquisitions, and partnerships. The report also addresses global expansion, implementation processes, and challenges like outdated systems and data accuracy.
Providers are investing in next-generation technologies like AI and machine learning for finance and accounting platforms, offering more efficient financial reporting and decision-making.
GenAI is being explored for strategic functions like record-to-report (R2R) and financial planning and analysis (FP&A), potentially leading to better predictive models and personalized financial insights.
Providers are adopting a client-centric approach, collaborating with enterprises to tailor solutions to unique finance and accounting requirements.
Operational effectiveness of GenAI is still uncertain despite being invested in, raising concerns about its true impact on financial operations.
Challenges such as outdated systems and poor data accuracy are affecting enterprise finance and accounting organizations, emphasizing the need for modernization.
Comprehensive platforms, AI features reshape software to meet changing requirements for enterprise financial operations, ISG Provider Lens™ report says
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.”
The report also explores other trends affecting finance and accounting platforms, including providers’ investments in global expansion and efforts to streamline implementation processes for faster ROI.
For more insights into current challenges for enterprise finance and accounting organizations, including outdated systems and poor data accuracy, plus ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ global Finance and Accounting Platforms report evaluates the capabilities of 22 providers across two quadrants: Invoice to Cash (I2C) and Record to Report (R2R).
The report names BlackLine as a Leader in both quadrants. It names Billtrust, Esker, FIS GETPAID, HighRadius, OneStream, Oracle, Sidetrade and Trintech as Leaders in one quadrant each.
In addition, Emagia and HighRadius are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
Customized versions of the report are available from Emagia and Trintech.
The 2024 ISG Provider Lens™ global Finance and Accounting Platforms report is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240503678862/en/
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com
Source: Information Services Group, Inc.
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