The Integration Pros: How CFOs and Treasurers Bridge Operational Silos

Innovation isn’t just about new products or technologies; it’s about challenging old ways of thinking and improving every part of the business.

Organizations looking to grow need to unlock operational data within the business and establish a single source of truth. Otherwise, a vacuum may develop at the center as various executives turn to siloed data streams and information flows, as well as disparate and fragmented digital systems and software platforms.

The bigger the business, the bigger the problematic blind spot this can result in.

As organizations continue to embrace digital transformation, the finance function is at the forefront of battling integration challenges as firms lean on their CFOs and treasury teams to drive innovation and growth.

The reason for the reliance on finance? Integration challenges around core systems like enterprise resource planning (ERP) platforms, real-time treasury management tools and embedded payment and compliance solutions directly impact cash flow, operational efficiency, and ultimately, business performance.

Ultimately, today’s finance leaders are not only managing balance sheets but are also designing the connective tissue that enables an enterprise to operate cohesively.

Read more: ERP Innovations Are Rebooting the Back Office as Organizations Modernize

The Role of Finance in Driving Organization-Level Innovation

In the age of digital transformation, organizations are no longer just enhancing processes; they are rethinking them from the ground up.

Finance is often the nexus of disparate business functions, providing a unique vantage point for identifying inefficiencies and potential synergies. From procurement and sales to logistics and compliance, most processes eventually tie back to the finance team. This centrality gives CFOs and treasurers the authority — and often the mandate — to drive enterprise-wide integration efforts.

“The middle to back office, they’re no longer just a cost center,” Meghan Oakes, vice president of customer success at FIS, told PYMNTS. “They’re a value-added partner for everybody within the business. There are many different aspects of that middle to back office that are now at the forefront of how companies operate.”

At the same time, as the scope of finance evolves to encompass strategic decision-making, data-driven insights and risk management, the need for real-time visibility across the organization becomes paramount. CFOs and treasurers are uniquely positioned to advocate for systems that offer smoother data flows and actionable insights, enabling them to optimize working capital.

“The finance function is no longer just a support function; it’s a strategic function,” Chris Taylor, CFO at Flashfood, explained to PYMNTS during a discussion for the PYMNTS series “A Day in the Life of a CFO.”

PYMNTS Intelligence has found that treasurers with high levels of influence are far more likely to report that their companies have predictable cash flows, expect revenue to increase and are agile in responding to shifting marking conditions.

Read more: How to Take a Flamethrower to Free Trapped Treasury Data

Challenges and Opportunities When Breaking Down Silos

Operational silos are the bane of efficiency, yet they persist in organizations of all sizes. These silos often arise from a combination of legacy systems, fragmented workflows and resistance to change. Finance teams face several challenges in breaking them down, ranging from legacy systems to data discrepancies and cultural resistance.

Successful integration efforts can often start with upgrading core platforms like ERPs. These systems serve as the backbone of enterprise operations, managing everything from supply chain logistics to payroll. However, many legacy ERPs were designed for a pre-digital era, making them ill-suited to today’s needs for interoperability and scalability.

Modern ERP systems offer advanced features like API-driven integrations and cloud-based architectures, enabling connectivity with other platforms. By investing in these upgrades, CFOs can create a solid foundation for further integration efforts.

Embedded payment and compliance platforms are another critical component of integration. These solutions streamline processes like vendor payments, tax compliance and fraud prevention by embedding these functions directly into workflows. By eliminating the need for manual intervention, embedded platforms not only save time but also reduce the risk of errors.

The PYMNTS Intelligence report “CFOs Eye Accounts Receivable as New Direction for AI Investments” found that solutions powered by artificial intelligence (AI) are increasingly being adopted to automate invoice approvals and payments, providing operational benefits.