Metaverse happens to be the buzzword among marketers.
However, now it’s also a surging topic for financial c-suite leaders to discuss.
With 91% agreeing that leading organizations will push to make the virtual world crucial to their business reality.
Again, 70% of CFOs believe it will have a positive impact.
To fulfill the need of businesses and be relevant to ever-changing trends, CFOs are now embracing the metaverse and upgrading business strategies per trends and customer behavior.
In this blog, we have summarised the nitty-gritty of the metaverse and its possible intersecting benefits with the roles of CFOs.
Let’s dive in!
What is metaverse?
The metaverse is a persistent digital world parallel to the physical world.
The most known metaverse integrations are Decentralised, Axis, Upland, Fortnite, and Sandbox.
In 2022 and beyond, businesses will increasingly become familiar with the concept of metaverse, 3D, and AR [Augmented Reality] to soothe the interaction between personnel.
Products will turn into an immersive asset, and many are already calling it “Metacommerce”.
How metaverse and finance can merge together:
- Meta-workplace and offices are gaining recognition, allowing connecting with customers and employees without pandemic challenges of communication gap, job expectation-reality difference, and lack of personal interaction.
- In the near future, metaverse can foster automation of various processes, thus enabling workloads to be lightened in admin, logistics, accounting, and HR departments.
- Crypto-biased payments— more and more customers will conduct payments via their crypto wallets in the future, and many are already doing so.
- CFOs and Finance companies need to update organization processes and systems according to that, so you can avail benefits of the Meta shift and thrive beyond the competitors!
How can CFOs embrace Metaverse?
Here we’ve outlined day-to-day CFO roles and intersection with metaverse effects. Also, the takeaways to tackle with them effectively. This way you’ll be adaptable to rapid metaverse impacts on your business and implement them in your utmost favor.
1. Financial and development strategies with Metaverse
Everyday metaverse unleashes new immersive experiences. As the significant responsibility of the CFO is gauging trends and forecasting steps. You need to proactively keep a hawkeye on changing areas— or where should your business get invested in?
For instance: Digital real estate is a term gaining heat even among tangible real estate investors. In a few months, combined land sales in the metaverse have risen by 1,000% and are estimated to get double by 2022.
That means there’s demand and similarly to physical assets, digital land is so limited.
So, there’s fierce competition and if you can analyze it at right time and enforce the right action, your business is going to stay ahead of competitors.
2. Employee interaction, training, and management.
With the virtual workplace, employees can work and interact from anywhere!
That combines with more growth opportunities and freedom of hiring skilled personnel from global convenience.
Through dedicated AR and VR technology, people who aren’t in the same room – whether work colleagues, conference attendees, or new clients— now can interact, train or learn at ease without a tangible presence!
And this opens the gates to perfect business execution with greater satisfaction.
3. Blockchain ledgering
In a business network, a blockchain ledger facilitates the recording of transactions as well as asset management, tangible and intangible.
Each transaction follows validation and agreement with the consensus mechanism, ensuring that each transaction is entirely secured and safe.
With blockchain technology, tasks like reporting, balancing P&L statements, and cash flow management is no-brainers.
This saves time so you can focus on better things.
4. Forecasting and risk management
With emerging blockchain and crypto transactions, a subtle collaboration is still due!
And to keep the c-suite peers confident in the metaverse— CFOs need to assure the conduction of reliable and full-proof transactions.
With a CFOs assurance and vast experience, it becomes manageable to forecast and mitigates the risk of virtual assets or vulnerabilities— eventually ensuring robust and safer workflows in the organization.
5. Technological and cultural hurdles in administration
With technologies upgrading, some hurdles are upfronting to embrace them…
Some of the major causes are metaverse’s less acceptance and environmental effect because of blockchain transactions— according to a report, the average bitcoin transaction consumes as much as 2116 kWh of electricity.
This is lacking balance with power sustainability.
Organizations are trying to form special norms to safeguard the public interest in business and overcome barriers.
Here CFOs play a vital role to develop special rules and minimize obstacles. These are some of the examples:
- Preparing special procedures for new regulations.
- Exploring new finance or accounting processes.
- Setting rules, and familiarising internalities with different areas such as NFTs, and blockchain technology. Along with their best practices in business.
6. Data collection and analysis
The internet of things(IoT) or metaverse is an optimal way to collect data and rebuild strategy per customer data feed.
The way people interact with Meta things can provide an overwhelming amount of information for decision-making. Later, to make sound financial decisions, CFOs can easily analyze the records and help businesses to grow.
Moreover, with data collected businesses can tap various queries such as:
- Should we introduce this new product or service?
- Can we afford to on-shore our supply chain?
- What are the tax implications of our employees working from anywhere?
One thing to ever consider is— ethical conduction duly needs to follow thus protecting customer data sovereignty!
How FinAccountants helps!
If your company is looking to take advantage of a metaverse in order to succeed in 2022 or beyond, we’re here to help.
We at FinAccountants help finance businesses with consultancy— assist you to understand metaverse and crypto trends to hop on them promptly and redeem your benefits.