Ep. 202: Oded Zehavi - How a Digitally-Empowered Finance Team Transforms Business

IMA’s Neha Lagoo Ratnakar speaks with Oded Zehavi, CEO of Mesh Payments, about digital transformation of the finance team. They discuss how powerful new software tools and automation opportunities empower CFOs and their teams to streamline business partnering, sharpen internal controls, and simplify business operations. The good news is it’s much less complicated than you think.

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Full Episode Transcript:
Neha:

Welcome back to Count Me In, the podcast by and for management accountants. I'm Neha Lagoo Ratnakar from IMA, and today I'm speaking with Oded Zehavi about how the enormous potential of digital transformation is finally coming to fruition for CFOs and finance teams everywhere. As the CEO and founder of Mesh Payments, Oded has a bird's eye view into how accounting and finance professionals are utilizing and customizing powerful new software tools to streamline business partnering, sharpen internal controls and simplify business operations. And what struck me during the conversation was that how appropriate the word transformation is in this moment. It's like the buzzword I've heard a million times crystallized into something real for me. During the course of this interview, you'll hear how technology has clearly elevated the value the finance function is able to provide to the business in real time. Let's get started with Oded to see how businesses are leaning into this exciting new era of innovation.

Neha:

So let's start with the obvious question today. We are all witnessing a transformation in the way we work and finance and accounting is one of the functions that lends itself very well to remote working. How do you think the CFO's office has changed since the pandemic?

Oded:

So people usually speak a lot about the fact that everything is remote now, which is key, by the way, by the way that finance people operates. I will even go back in time and speak about something that less people are talking about, which is why the category, which I mean, which is spend management, have been really driving from the beginning of the pandemic. And in my mind it's always start by the fact that before the pandemic, the finance teams were really focusing about T&E. So everybody were a lot of fun. Various sales guys were traveling and it's all about how we collect received, how do we close the books? There was so much noise so many people involved. What does does it mean? And so many employees have been brought, and it's really beyond the fact that he's taken a lot of the time from the finance teams activities.

Oded:

It also created a lot of noise and camouflage some other problems that might have been bigger or different. And when the pandemic started, that was shut eliminated overnight. So now nobody travels anymore. No receipts have been chased. That noise have been gone quiet. Totally. And on top of it, there were two other trends which in my mind have really impact the way finance team operates. One, as you mentioned, is the fact that now companies are fully remote and distributed. So a lot of the processes that historically the finance team could have solved by telling the employees, you know, what? Come to my desk, yes, tomorrow and we'll make this happen have not been relevant anymore. And last, but not least, the fact that many of these companies move a lot of the infrastructure to the cloud. So now a lot of these old on premise licensing models have been shut down.

Oded:

And now everything move to more recurring models where you need to pay every month a much smaller amount with much more softwares. So the combination of all of that really made a huge difference when it comes to how finance teams need to treat spend or treat corporate spend. And what I'm seeing is that over the last two years, the space itself have been exploding. So many great companies have come into this space, which are now giving very new technology, amazing user experience will talk about it in the second, and last but not least, a new business model, which in our category, historically, companies have been used to pay for software that helps them control spend. I'm amazed there are still companies that are even considering paying for some of the very, very old legacy platforms on things they are not really using, where there are so many options like mesh in the space that enables them to pay only for what they use and sometimes not even pay anything because a lot of us have been using the model where we, the merchant that we are paying for are, are really paying for the service. So a lot of transformation and changes in the way finance team have looked at spend management and on top of it and you started by the remote and the fact that companies are now distributed. So it's not only that are distributed, they're also global. If we were talking, having this conversation few years ago, most of the US companies were usually around this very one site usually in one city in the US it could be San Francisco or New York or one of these leading countries.

Oded:

The pandemic really shifted a lot of the employees all across the US and now there are new places where employees from different reasons want to spend time in like Austin, like Miami, like all these places which are totally outside of the where traditional headquarters have been based and last than not least, why stay in Austin when you can spend the same time and work from a much more exotic place. And I've seen companies that have become fully distributed and fully remote. And for the finance teams, all of these challenges are really something that is transformational. And they have really invested a lot of time and effort in the last two years to be ready to give solutions or be, give service in such a changing world.

Neha:

Wow. I love that, Oded, there's so much that has been happening, and thank you for summarizing so well how work, softwares, platforms, our activities have changed in the last couple of years. Now let's talk about the mindset changes. What have you seen change in the last couple of years and is there anything that the CFOs or the finance departments can do to help with this mindset change?

Oded:

So it's interesting that we are talking today, which is more or less in the middle or the beginning or some people out the hand of additional neutrons to change in the mindset of finance team or finance people, if we can go back when the pandemic came, everybody stopped and tried to reduce cost and see what happens that very quickly after a month or two, the world, especially the high tech scene, have really shifted into growth. Just growth and growth and growth. And companies have been growing and bringing more to employees. They're more talents and spending more on media. And it was really about growth. Not all, but most of the companies didn't invest enough time about unique economics and controls and things that are fundamental when it comes to business. And we are in the beginning of a new transformation or new mindset change where everybody said saying to the same fine sense things that they will say to them a year ago, Grow, grow, grow, stop, stop, stop.

Oded:

And let's focus on the fundamental economics control and visibility. And it all comes back to the fact that now changes are happening much quicker, but then nobody knows if we'll talk again in two months, what will be the mindset then, that it will be just control, and it might happen the same way it was in the pandemic. The only thing that we know that is that we don't really know. From what the impact for finance teams is that they now need to have an infrastructure, which is ...