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CFOs confident, ready to invest in new technology

Financial decision-makers are more confident about the future of their companies as the economy picks up, and may be increasingly willing to invest in new technology, like a dual purpose cash and check scanner and remote deposit capture technology to automate their deposit processing function. According to new research, this outlook is shared among many executives, who expect greater sales in the coming months.

Positive outlook on the rise
Financial Executives International and Baruch College's Zicklin School of Business recently conducted a survey of CFOs nationwide and found that while concerns are prevalent, a great deal are positive about the future. The poll revealed the quarterly optimism index leaped from 67.1 in quarter one 2013 to 70.7 in quarter two 2013. Confidence in the economy also improved quarter-over-quarter, with this index jumping from 58.5 to 61.2. While confidence is growing now, future expectations are also increasing. Respondents expect net earnings to rise 11 percent in the next year, while they anticipate revenue will jump by 8 percent.

Even though global market slowdowns have occurred, they don't appear to be shaking CFO sentiment in the U.S. Seventy-three percent of those surveyed said their businesses would not be impacted by sluggish growth in India and China and 53.9 percent were confident the global economy was showing overall improvement.

More businesses also plan to hire - positive news for the economy as a whole and the ability of consumers to continue to make purchases. Sixty-one percent said their companies would be hiring within the next few months, and 72 percent they did not cut employees from their workforce in the past year, indicating firms are in need of staff members to keep operations running smoothly.

Investments in new technology likely
As profits and revenues continue to grow, more companies may be willing to spend on new technology that will streamline business practices and speed transaction processing times, as well as provide shoppers with an enhanced experience.

The poll revealed CFOs anticipate increasing their technology spending by 7 percent. While some of these professionals could be considering investing in new marketing strategies, big data tactics or cybersecurity measures, others may be more interested in devices that will improve backroom processes. By purchasing cash and check scanners and looking into RDC technology, businesses can see their investments have a positive impact on daily tasks.

August 19, 2013