New CFO challenge: Evolve your finance teams now or become irrelevant
A comprehensive new report reveals that finance teams worldwide are at a critical juncture, with just five years to adapt to rapidly changing demands—or face the risk of becoming obsolete.
NEW YORK, Sept. 5, 2024 /PRNewswire/ -- Finance teams have just five years to transform or risk becoming irrelevant, according to a new report by ACCA (the Association of Chartered Certified Accountants) and Chartered Accountants ANZ in association with PwC. The report, Finance evolution: Thriving in the next decade, stresses the vital role finance teams play in building sustainable businesses and urges CFOs and finance leaders to take immediate action.
Drawing on insights from over 150 finance professionals and 2,300 survey responses, the report shows that businesses now demand a broader skill set from their finance teams, as retrospective reporting and traditional approaches to planning and forecasting alone no longer meet key decision-makers' needs. Being pre-emptive is the order of the day.
The report highlights some ongoing concerns raised by survey respondents:
- A lack of clarity on how finance can add value to the business (38%)
- Finance being seen mainly as a cost center (32%)
- Current technology not meeting the needs of the organization (30%)
Finance teams must embrace technologies like artificial intelligence, machine learning and data analytics, to enhance decision-making and operational efficiency. These technologies help finance teams reduce manual tasks, boost efficiency, and be recognized as key drivers of growth rather than merely number crunchers. The role of finance has also expanded to include leadership on long-term value creation including sustainability issues.
However, the report also emphasizes that as finance teams undergo this transformation, the importance of ethics must remain at the forefront. With the increasing reliance on technology and data, maintaining a strong ethical foundation is crucial to building and sustaining trust.
Helen Brand OBE, Chief Executive of ACCA, said, "For finance teams to stay relevant, they need to look ahead. CFOs and finance leaders must ensure they are measuring both the long-term and short-term goals of sustainable business models effectively. The role of the CFO is fast evolving beyond finance to encompass wider value creation and management."
Ainslie van Onselen, Chief Executive Officer of Chartered Accountants ANZ, stated, "While the arrival of new technology presents exciting opportunities to radically transform and improve the way we work, the one thing that must never change is our profession's strong ethical standing. While we upskill and future proof our technology capabilities, we must also remain firmly focused on the ethical role that financial professionals – especially Chartered Accountants – must play."
Moreover, the report highlights significant skill deficits in the areas of digital, data, and sustainability. Addressing these gaps is essential for finance teams to lead effectively in the next decade.
Simon Seymour, Partner at PwC, noted, "Respondents highlighted their biggest skills gaps as digital skills, data skills and sustainability skills. A critical question for the industry, as a whole, is why these skills gaps remain so pronounced and how far organizations should go to own the skills agenda, and not just rely on traditional training."
Jillian Couse, Head of ACCA North America, said: "Finance leaders face real challenges in the next few years in demonstrating how their teams can add value in a rapidly changing business landscape. This report makes clear that investing in training and technology resources will be critical to helping their teams achieve success."
The report is a clear call for action: finance teams must embrace new technologies, develop critical skills in digital, data, and sustainability, and uphold the highest ethical standards to ensure they remain integral to their organizations' success in the years to come.
Download a graphic from this report: "Three key messages from this research for finance teams."
About ACCA
We are ACCA (the Association of Chartered Certified Accountants), a globally recognized professional accountancy body providing qualifications and advancing standards in accountancy worldwide.
Founded in 1904 to widen access to the accountancy profession, we've long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries.
Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organizations and economies.
Guided by our purpose and values, our vision is to develop the accountancy profession the world needs. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we're strengthening and building a profession that drives a sustainable future for all.
Find out more at: www.accaglobal.com
About Chartered Accountants ANZ
Chartered Accountants Australia and New Zealand (CA ANZ) represents more than 136,000 financial professionals, supporting them to build value and make a difference to the businesses, organisations and communities in which they work and live. Around the world, Chartered Accountants are known for their integrity, financial skills, adaptability and the rigour of their professional education and training. Find out more at www.charteredaccountantsanz.com
About PwC
At PwC, our purpose is to build trust in society and solve important problems. We're a network of firms in 151 countries with over 364,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com
SOURCE ACCA (the Association of Chartered Certified Accountants)
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