Transforming Finance: Navigating the Decade Ahead

The finance function is at a critical juncture, facing a pivotal five-year window to evolve and remain relevant. A report by the Association of Chartered Certified Accountants (ACCA), Chartered Accountants ANZ, and PwC highlights the urgent need for finance teams to adapt and embrace new skills to thrive in the next decade.

Empowering Finance Teams to Drive Sustainable Business Growth

Expanding Role of Finance in Building Sustainable Businesses

The finance function's role in supporting sustainable business practices is rapidly expanding. Chief financial officers (CFOs) and finance leaders must take immediate action to enable this transformation. The report, "Finance Evolution: Thriving in the Next Decade," analyzes 2,300 survey-based responses from 150 finance professionals, revealing the key shifts driving this evolution.One of the most significant changes is the growing demand for finance teams to possess a broader skill set. Reporting and traditional approaches to planning and forecasting are no longer sufficient to meet the needs of key decision-makers. The report emphasizes the need for finance teams to be more preemptive and proactive in their approach.Md. Sajid Khan, Director-India at ACCA, highlights the regional perspective, stating that "74% of respondents in India and South Asia said that their organization had a vision, either fully or partially, for the finance function that looked at three to five years — hence, the greatest proportion of respondents to this question. This compares favorably to 66% globally."

Embracing Technology to Enhance Decision-Making and Operational Efficiency

The report emphasizes the importance of finance teams embracing technologies like artificial intelligence, machine learning, and data analytics to enhance decision-making and operational efficiency. Ainslie van Onselen, Chief Executive Officer of Chartered Accountants ANZ, emphasizes the need to balance technological advancements with the profession's strong ethical standing."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."

Addressing Skill Gaps in Digital, Data, and Sustainability

The report highlights significant skill gaps in digital, data, and sustainability, which are essential for finance teams to lead effectively in the next decade. Simon Seymour, Partner at PwC, raises a critical question for the industry:"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."Addressing these skill gaps is crucial for finance teams to navigate the evolving landscape and contribute to their organizations' long-term success.

Maintaining Ethical Standards Amidst Transformation

The report emphasizes that while finance teams need to develop new skills in data, digital, sustainability, and new-age technologies, they must also maintain ethical standards as they strive to take their organizations forward. This delicate balance is essential for finance professionals to uphold the integrity of the profession and build trust with stakeholders.The finance function's transformation is not just about acquiring new technical skills; it's about striking a harmonious balance between technological advancements and the enduring ethical principles that define the finance profession. By embracing this holistic approach, finance teams can position themselves as strategic partners, driving sustainable business growth and ensuring their relevance in the decade ahead.