Urgent Call For Finance Teams: Transform Within Five Years Or Risk Becoming Obsolete

Finance teams have a five-year window to transform or face irrelevance, according to a report by ACCA and Chartered Accountants ANZ with PwC. The report, "Finance evolution: Thriving in the next decade," highlights the crucial role finance teams play in building sustainable businesses and urges immediate action from CFOs and finance leaders.

Embracing Technology for Enhanced Efficiency

To stay relevant, finance teams must adopt technologies like artificial intelligence, machine learning, and data analytics. These tools can reduce manual tasks, improve efficiency, and position finance as growth drivers rather than mere number crunchers. The role of finance now includes leadership in long-term value creation, including sustainability issues.

The report draws on insights from over 150 finance professionals and 2,300 survey responses. It reveals that businesses now require a broader skill set from their finance teams. Traditional approaches to planning and forecasting are no longer sufficient; proactive measures are essential.

Key Concerns Highlighted by Survey Respondents

Survey respondents raised several ongoing concerns: - 38% cited a lack of clarity on how finance can add value. - 32% viewed finance mainly as a cost centre. - 30% felt current technology does not meet organisational needs.

In the Middle East, 64% of respondents indicated that their organisation had a vision for the finance function. However, significant barriers remain: - Half of the respondents lacked understanding of areas where finance can add value. - Finance is often treated as a cost. - There is a lack of organisation-wide collaborative culture.

Ethics at the Forefront

The report stresses that ethics must remain central as finance teams transform. With increased reliance on technology and data, maintaining strong ethical standards is crucial for building and sustaining trust.

Helen Brand OBE, Chief Executive of ACCA, stated, "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."

Skill Gaps in Digital, Data, and Sustainability

The report also highlights significant skill deficits in digital skills, data skills, and sustainability skills. Addressing these gaps is essential for effective leadership in the next decade.

Ainslie van Onselen, CEO of Chartered Accountants ANZ, remarked, "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."

The Need for Immediate Action

Simon Seymour, Partner at PwC noted that respondents identified their biggest skills gaps as digital skills, data skills and sustainability skills. He questioned why these gaps remain so pronounced and how far organisations should go to own the skills agenda rather than relying on traditional training.

The report calls for immediate action: Finance teams must embrace new technologies, develop critical skills in digital, data, and sustainability while upholding high ethical standards to ensure they remain integral to their organisations' success in coming years.