The role that finance teams play today in building sustainable businesses is expanding every day, according to the report “Finance Evolution: Thriving in the Next Decade.” Financial directors (financial directors) and financial leaders must take immediate steps to enable this transformation.
The report analyzes 2,300 survey responses from 150 financial professionals.
One of the key underlying changes to the transformation, he says, is that companies now want their finance teams to have a broader skill set. Traditional planning and forecasting approaches and reporting are no longer sufficient to meet the needs of key decision makers. The need to take preventive measures is considered the order of the day.
Md. Sajid Khan, ACCA director for India, says: “74% of respondents in India and South Asia said their organization had a vision, full or partial, for the finance function spanning three to five years. ; therefore, the largest proportion of those who responded to this question. This compares favorably with 66% globally.”
Barriers to transformation
At the South Asia level, the three most important barriers to improving the role of the finance function in the region are the lack of a collaborative culture across the organization; a lack of understanding of the areas where finance can add business value; and finances continue to be treated as a cost. Globally, the report says finance teams should adopt technologies such as artificial intelligence, machine learning and data analytics to improve decision-making and operational efficiency. Ainslie van Onselen, chief executive of Chartered Accountants ANZ, says: “While the advent of new technology presents exciting opportunities to radically transform and improve the way we work, the one thing that must never change is the strong ethical position of our profession. While we enhance technological capabilities and prepare them for the future, we must also remain firmly focused on the ethical role that financial professionals, especially CPAs, must play.”
The report also highlights important skills gaps in digital, data and sustainability. Addressing these gaps is essential for finance teams to lead effectively in the next decade.
Simon Seymour, partner at PwC, says: “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 need to go to own the skills agenda and not rely solely on traditional training.”
Overall, it is clear that today’s finance teams not only need to develop new skills in data, digital sustainability and new-age technologies, but they must also maintain ethical standards as they seek to move their organizations forward.
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