Why Finance Teams Need to Evolve with Today’s Data-Driven Demands: The Case for Financial Operations

Rev Finance Blog

 

In an increasingly data-driven world, the responsibilities of finance teams have expanded at a breakneck pace. Today’s finance leaders are responsible for much more than traditional reporting and budgeting; they’re also being asked to play a strategic role in managing data and processes that cross multiple departments. As finance teams juggle these diverse functions, the need for a specialized Financial Operations role has emerged to ensure smooth operations, data management, and, critically, the responsible integration of AI and automation across finance workflows.

 

The Expanding Scope of Finance Teams

The finance function was once focused on historical reporting, cost control, and compliance. But today, finance teams are expected to provide real-time insights, model future scenarios, and align finance data with the company’s larger goals. Whether it’s cash flow forecasting, optimizing working capital, or aligning budgets with strategy, finance now plays a crucial role in ensuring overall business agility and resilience.

Managing this complexity requires coordination across teams, each with its unique focus and data requirements. In addition to juggling financial data sources, finance teams are now tasked with managing automated workflows and implementing AI-driven insights, adding another layer of sophistication to their roles. To meet these demands, it’s becoming clear that finance teams need a Financial Operations role that can manage the data, optimize processes, and ensure responsible AI use within the finance function. Lessons from Sales Operations: A Parallel Evolution

 

Lessons from Sales Operations: A Parallel Evolution

The rise of Financial Operations mirrors a similar evolution that happened in sales a decade ago. When Salesforce and other CRM systems gained popularity, sales teams were suddenly empowered with a wealth of data—potential customers, lead scoring, pipeline progress, and more. But along with that data came the need for someone to manage it, interpret it, and ensure it was used effectively. Enter the Sales Operations role: a function designed to organize, analyze, and optimize sales data to help drive business outcomes.

Sales Operations professionals quickly became essential to sales teams by refining processes, tracking progress, and aligning sales data with business goals. Without a dedicated role to manage this critical data, it would have been difficult, if not impossible, to turn CRM data into meaningful insights for the business. Finance is now facing a similar turning point, with expanding datasets and technologies making a compelling case for a dedicated Financial Operations person. 

 

Finance is Following a Similar Path

Just as sales experienced a data explosion, finance is seeing a similar surge in data, originating from ERPs, invoicing systems, accounts receivable/payable tools, and other financial software. Cash flow forecasting, scenario planning, and other vital finance functions require careful data management and analysis across multiple teams. And because finance data touches so many parts of the business, it’s no longer enough to expect that existing finance roles can absorb this new complexity.

A Financial Operations professional can act as the bridge between accounting, FP&A, and strategic finance teams, ensuring streamlined workflows and that every team has access to reliable, up-to-date data. Beyond managing data itself, Financial Operations would coordinate tools, optimize processes, and, increasingly, guide the team in responsible AI use.

 

Why Finance Teams Need a Dedicated Financial Operations Person

  1. Data and Process Management Across Functions: Financial Operations ensures that data and processes impacting multiple teams remain consistent and effective. Finance data affects a range of stakeholders across the organization; ensuring all teams can rely on accurate, actionable information is crucial for productivity and confidence in financial decision-making 
  2. Driving Strategic Value with Technology: A Financial Operations person can help finance teams fully leverage their tools, from cash flow forecasting platforms to accounts receivable automation. With a dedicated person managing these resources, finance teams can achieve greater efficiency and deliver more precise insights to stakeholders.
  3. Managing Responsible AI Integration: As finance teams access larger volumes of data, they are increasingly positioned to leverage AI and automation. This capability allows for faster processing and forecasting but comes with the responsibility to use AI ethically and securely. Financial Operations can manage this responsible AI adoption by setting guidelines for AI usage, ensuring data accuracy for automation, and providing transparency into AI-driven recommendations. Just as sales operations roles guide CRM usage and data integrity, Financial Operations can help finance teams adopt AI in ways that add value without sacrificing accountability or accuracy.
  4. Overseeing Risk Management and Compliance: Financial Operations plays a critical role in ensuring that financial data remains secure and compliant with regulatory standards. By implementing best practices in data governance and proactively addressing potential risks, FinOps helps safeguard finance systems and instills confidence in data accuracy across the organization.
  5. Creating a Future-Ready Finance Team: With a Financial Operations role, finance teams are better equipped to meet the demands of today and the challenges of tomorrow. By managing data across teams, optimizing processes, and integrating responsible AI, this role helps create a finance function that is agile, insightful, and strategic.

 

Conclusion:

Financial Operations Paves the Way for a Future-Ready Finance Team The evolving role of finance today mirrors the early days of Sales Operations, where a dedicated operations role became essential to manage data and drive business insights. In the same way, finance teams now need a Financial Operations professional to coordinate across departments, ensure data integrity, and responsibly integrate AI-driven insights. This role is essential to elevate finance from traditional functions to a proactive, strategic powerhouse capable of navigating today’s fast-paced, data-driven environment.

A dedicated Financial Operations role can bridge gaps in data management, streamline workflows, and enhance strategic impact. Connect with us to learn how Tesorio can support your finance team’s evolution and help you build a finance function ready for the future.