" What I have observed is that useful tools that previously required large-scale deployment and a substantial budget are now accessible to small and medium-sized businesses. And they may not even be aware of it... "
Éric DEFLINE is a part-time Chief Financial Officer. As such, his job requires him to take an informed look at the digital transformation currently underway in SMEs. His insights are all the more interesting given that he is involved in the day-to-day operations of SMEs of various sizes operating in different markets. We therefore went to meet him to gather his thoughts on the evolution of his profession and, more generally, on how microbusinesses and SMEs are adapting to the challenges posed by digital transformation.
Hello Eric, could you start by introducing yourself?
Éric DEFLINE: I am a part-time Chief Financial Officer at Finaxim and have been doing this job for almost eight years. Previously, I worked in auditing, then in large corporations such as Renault-Nissan, and also in an international mid-sized company with subsidiaries around the world and a rapidly growing turnover of €250 million. I then managed a small SME with up to 19 employees, which unfortunately did not survive the Covid period. Following this last experience, I wanted to put my experience at the service of SMEs. So I wear two hats: entrepreneur and Chief Financial Officer.
I organize my work around a dozen clients for whom I act as Chief Financial Officer and whom I support on an ongoing basis. It is quite rare for me to work for all my clients simultaneously. I provide daily support to companies whose needs require regular attention. For other clients with more limited needs, I intervene on an ad hoc basis, either at the time of the annual closing of accounts, to establish the annual budget, or when specific issues arise. My services may be spaced out over several months for some of them.
What prompted you to start working as a part-time CFO?
É.D. : I wanted to make myself useful. When you're Chief Financial Officer at Renault, you're one of hundreds of others across the group... Whereas when I work as CFO in a small or medium-sized business, it's usually because the position is vacant. So I have the opportunity to bring significant added value to the manager.
I think it is important to point out that, in addition to my responsibilities as Chief Financial Officer, I also assist the CEO with strategic issues and company restructuring.
We hear that your profession has changed considerably in recent years? How so?
É.D : Indeed, the CFO's role has evolved from simply ensuring the accuracy of accounting documents to making strategic decisions that directly impact the company's business, working more closely with other departments within the company... In short, creating more value for the company.
This is exactly what I experience in the companies I work with. I supervise accounts and handle financial reporting when my role also includes management control and planning.
but I also challenge other departments within the company on their costs or on the profitability of certain investments.
Are there other aspects of your job that have changed?
É.D.: I don't know if it's an evolution or if it's one of those things that are less visible, but they are part of the company's strategic choices. Do I target this market rather than that one? Or, if the company has the opportunity to invest a significant budget, where do we choose to invest? With what ROI prospects? Is this investment consistent with the company's strategy?
The CFO also faces growth issues. Is it in the company's best interests to pursue a strategy of external growth? If an acquisition opportunity arises, do I have sufficient in-house expertise to carry out and digest this operation?
We go far beyond the traditional role you presented of ensuring compliance with figures; we address strategic issues that determine the future of the company.
I bring to the small and medium-sized businesses I support this ability to ask questions and therefore to plan for the longer term. I combine my managerial perspective with the strategic perspective of the executive, who has not always fully grasped the financial issues.
Things are also changing in the context of digital transformation.
What I have observed is that useful tools that previously required large-scale deployment and a substantial budget are now accessible to small and medium-sized businesses. And they may not even be aware of it...
Eight years ago, I implemented electronic invoicing in a large international mid-sized company with high volumes (up to 50,000 invoices per month). This required major deployments in terms of IT architecture. Today, technology has evolved and developments are no longer as complex. Small and medium-sized businesses should know that they now have access to these solutions, which they thought were reserved for large corporations, at a virtually negligible cost and with great ease of implementation.
Although digital transformation tools are easy for small and medium-sized businesses to use, many of the companies I have worked with did not have these tools. They were perfectly organized in their core business, but in terms of accounting and finance, they were still using relatively obsolete systems, or even none at all.
For me, the transformation I have seen over the past few years is indeed this accessibility and this delay, but with an opportunity to deploy all these tools and thus really increase productivity.
What do these digitization tools enable?
É.D.: The first obvious benefit is productivity gains. Teams spend less time on time-consuming tasks and have more time to perform tasks with higher added value.
The second thing is that digitizing certain tasks reduces monthly closing times, which is not at all common practice for small and medium-sized businesses. They now have the ability to see their finances every month, whereas before, they sometimes only had visibility once a year.
What digital tools do you consider essential and now accessible to small and medium-sized businesses?
É.D.: First, there are the tools for implementing electronic invoicing. Starting with electronic invoicing from the supplier's perspective, not the customer's, then everything related to expense report management and everything that goes with it in terms of third-party payment via cards.
Today, in my opinion, an SME should hardly ever have to make manual accounting entries. In other words, 99% of its entries should be automatic entries that interface with systems, and all these systems should be interfaced with the accounting system.
Okay, but I suppose that also requires human computer skills?
É.D.: Yes, our profession is also evolving in this direction. We can talk about "technical aptitude" and the role of the person who administers the company's information systems. And then we are surrounded by others: in general, there is an accounting system with an accounting service provider, an accounting software publisher, a service provider for dematerialization or electronic invoicing tools, etc.
Once again, what was very complex a few years ago is no longer so today.
Digitization tools are becoming more widespread, as publishers ensure that their solutions interface easily with corporate information systems using APIs. They have eliminated a technical constraint that was both very costly and time-consuming.
You could have software that cost several thousand euros and require lengthy development to implement. For an SME, this can seem like a very long process. And so, people were reluctant to go ahead with it... Heavy development is becoming increasingly rare.
When I asked you to name the tools that you think are most relevant to install, you mentioned electronic invoicing. Why?
É.D.: Because the core business of a company is billing. Consequently, its primary objective is to collect payments.concern concern is to bill correctly and ensure that its invoice is received. And if it is received, it will be paid, and any reminder, if necessary, will be easier to detect and initiate. Behind all this are cash flow issues that are quite significant.
Let's talk about the electronic invoicing reform that lawmakers have decided to postpone. Are businesses ready?
É.D. : I am very familiar with this issue. What I have noticed is that for many SMEs and microbusinesses, electronic invoicing currently consists of sending a PDF invoice by email.
The vast majority of SMEs with a turnover of less than €10 million are currently unaware of the changes this will entail in terms of tools and organization. The advantage for those already working with the public sector and using Chorus is that they will already be familiar with the new system, which will remain relatively similar to Chorus. They will find it easier to adapt. But for those who are not yet at that stage, they are completely unfamiliar with what a PDP is and this new electronic invoicing system.
Are you suggesting that there is an urgent need for companies that have not yet fully grasped all the ins and outs of the reform to speed up?
É.D. : Objectively speaking, the reform is not that complicated to implement; it is more of an "intellectual transformation" than an operational one. Software publishers will greatly facilitate their task. And very often, it is the accountant who will have to do this work.
What do you mean by "intellectual transformation"?
É.D. : The current system allows companies to manipulate their VAT returns. The reform will mean that customer invoicing will, in a way, be made public. This means that it will no longer be possible to manipulate invoices in order to potentially benefit from VAT. We are providing complete transparency in our system, which will enter into circuits that I would not call state-run, but public.
What is certain is that it should make VAT returns easier, thereby reducing VAT fraud in particular and, as a knock-on effect, improving public finances. Now, the devil is always in the details, so it is obvious that at the beginning there will be a number of bugs in the systems, which will subsequently become much more structured and secure.
How will small and medium-sized businesses that have not yet worked on the electronic invoicing reform project prepare for it?
É.D. : Small and medium-sized businesses are known for being flexible, with their activities organized into short processes. On the other hand, they don't plan far enough ahead, so unfortunately electronic invoicing is not high on their list of priorities. Not all small and medium-sized businesses operate this way, particularly those that use an outsourced CFO, but this is rare. This is the purpose of my work: to give businesses a medium-term vision.
I always try to explain to my clients that just because you're an SME doesn't mean you can't have monthly closing processes worthy of a large corporation. In fact, it's even easier when you're smaller. The best way to do this is to implement tools such as electronic invoicing, which will enable you to achieve this goal and, secondly, to gain in productivity, rigor, and control, since the time freed up from low value-added tasks will be dedicated to other more qualitative actions.
In the small and medium-sized businesses where you work, what is the number onecriterion criterion when choosing an electronic invoicing management tool?
É.D. : As always, ease of use. The simpler the tool is to implement and use, the better. Publishers have understood this thanks to APIs that interconnect with customers' IT environments. Small and medium-sized businesses want simple, intuitive solutions that require little development and can adapt to their growth. As for the compliance offered by a solution, this is supposed to be a given for the company.
Obviously, as part of the electronic invoicing reform, companies naturally choose a PDP certified by the government. This is an important factor in reassuring them. There is no debate about that.
When you mentioned the digital tools that should be implemented as a priority, you didn't mention electronic signatures. Why is that?
É.D. : Let's say that in the financial sector, it's not the most important thing. It's a very useful solution for a company that sends out a lot of quotes and has contracts signed. We don't have that many things signed in the financial sector.
Thank you for giving us this fascinating and informative interview, Eric!
