Maroc - NEWSDAY.CO.TT - A la Une - 12/Sep 07:34

Finance teams – Evolve now or become irrelevant

According to a new report by ACCA and Chartered Accountants ANZ, in collaboration with PwC, finance teams have just five years to transform or face the risk of becoming obsolete. The report, Finance Evolution: Thriving in the Next Decade, underscores the critical role finance teams play in building sustainable businesses and calls on CFOs and finance leaders to act swiftly. Immediate action is essential to ensure their teams remain vital contributors to their organisations' future success. Drawing on insights from over 150 finance professionals and 2,300 survey responses, the report shows businesses now require a more comprehensive skill set from their finance teams. Traditional methods of retrospective reporting and conventional approaches to planning and forecasting are no longer sufficient to meet the needs of key decision-makers. Instead, a proactive and forward-thinking approach is essential to stay ahead. The report highlights some ongoing concerns raised by survey respondents: • A lack of clarity on how finance can add value to the business (38 per cent) • Finance being seen mainly as a cost centre (32 per cent) • Current technology not meeting the needs of the organisation (30 per cent) Finance teams must leverage technologies such as artificial intelligence, machine learning and data analytics to enhance decision-making and operational efficiency. These technologies enable finance teams to minimise manual tasks, enhance productivity and position themselves as key drivers of growth, rather than just number crunchers. 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." Additionally, the role of finance has evolved to include leadership in long-term value creation, including addressing sustainability challenges and driving strategic initiatives. However, the report also emphasises that as finance teams undergo this transformation, maintaining a strong ethical foundation remains paramount. With the increasing reliance on technology and data, it is essential to uphold rigorous ethical standards to build and sustain trust, ensuring that technological advancements are leveraged responsibly and transparently. Ainslie van Onselen, CEO of Chartered Accountants ANZ, said, "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. [caption id="attachment_1107985" align="alignnone" width="1024"] -[/caption] Simon Seymour, partner at PwC, said, "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 organisations should go to own the skills agenda, and not just rely on traditional training." Compared to many other regions, the Caribbean appears to be in a stronger position. According to the report, 70 per cent of respondents indicated that their organisation had either a fully or partially developed vision for the finance function, looking three-five years ahead –the highest proportion for this question – compared to 66 per cent globally. However, only 22 per cent of respondents said their organisation had a fully developed strategy in place. The three most significant barriers to enhancing the role of the finance function in this region were: – The current technology suite not meeting the organisation’s needs – Difficulties in addressing inconsistencies between long-term and short-term priorities; and – A lack of funds to invest in people. Paula Marcelle-Irish, head of ACCA Caribbean, said, "As the focus within the finance function shifts, 84 per cent of survey respondents in the Caribbean identified increased compliance and control as the most significant change, followed closely by 77 per cent who noted a rise in transactional efficiency. However, growth was anticipated across all areas of the finance function." She added that the rise of autonomous functions is unlocking new opportunities within finance, though survey respondents have shown a degree of hesitation in fully adopting these advancements. In the Caribbean, 28 per cent of respondents have already integrated data analysts into their teams, and nine per cent have appointed sustainability controllers. However, the recruitment of an algorithm auditor remains untapped, with no respondents having yet embraced this emerging role. The report issues a compelling call to action – finance teams must not only embrace cutting-edge technologies but also develop crucial expertise in digital transformation, data analytics and sustainability. At the same time, they must uphold the highest ethical standards to ensure they remain indispensable to their organisations. By doing so, they will not only safeguard their relevance but also become key drivers of their organisation's long-term success.   The post Finance teams – Evolve now or become irrelevant appeared first on Trinidad and Tobago Newsday.