To ensure a smooth 2024 without unexpected issues, CFOS needs to stay informed about its organization’s recent performance, monitor key trends in people, processes, and technology, and be equipped with the necessary tools for future readiness. Here are some predictions that finance leaders can use for a worry-free 2024.
1. Finance Teams Will Prioritize Workforce Planning
Finance teams are facing increasing expectations, especially with the uncertainty of remote or hybrid work and office arrangements. As workers seek more benefits and workforces become more complex, Finance needs a detailed understanding of workforce costs and opportunities.
Over 70% of 300 finance leaders don’t mandate full-time office return.
According to the 2023 Global CFO Survey by FTI, almost 70% of over 300 global finance leaders said their companies don’t mandate full-time office return. Despite some companies reducing office space due to cost cuts, efforts to promote returning to the office haven’t significantly changed the global preference for hybrid and remote work.
Surprisingly, over half (54%) of those struggling with workforce planning don’t use financial performance management technology daily. However, collaborative solutions designed for people, finance, and accounting teams have proven to streamline processes and eliminate obstacles.
Interestingly, around 63% of those using financial performance technology are satisfied with their workforce planning processes. Therefore, integrating workforce planning features into an existing solution appears to be a beneficial and efficient step.
2. CFOs as Strategic Advisors
Gone are the days when a CFO simply managed money. Nowadays, CFOs play a crucial role as strategic advisors, influencing decisions in finance, technology, and long-term planning for the entire organization. Their responsibilities go beyond traditional financial tasks and involve collaborating with different teams and business leaders.
Finance leaders are taking on a more strategic role to guide the entire business, but 29% are consulted by colleagues in the business monthly or less often.
However, there’s room for improvement in this collaboration, as nearly one-third of finance leaders are consulted monthly or less by their counterparts in the business. CFOs should provide guidance, especially in areas like technology, which is managed by the Chief Information Officer (CIO). Despite this, CFOs tend to spend less time with their CIOs and other executives, possibly because these roles often report to the CFO.
3. Optimizing Financial Operations
Companies continually seek operational enhancements to secure a competitive advantage. The finance and accounting department, in particular, stands to gain significant benefits from process optimization. Implementing strategies to improve finance and accounting operations can elevate efficiency, boost accuracy, and empower more informed business decisions.
Organizations can employ various strategies to enhance finance processes. Measures such as reducing manual errors through automation solutions like Robotic Process Automation (RPA), accelerating processes by identifying and eliminating redundant tasks, and automating routine activities contribute to faster decision-making. Moreover, cost reductions can be achieved by streamlining processes, potentially allowing for resource reallocation and increased visibility into finance operations.
4. Finance Expects AI Integration
According to Gartner, various stakeholders, such as boards, customers, investors, and employees, anticipate organizations to utilize artificial intelligence (AI), particularly generative AI. Finance leaders surveyed support this trend and a whopping 92% of peers and competitors are either already using or considering AI for financial planning.
The primary applications of AI align with existing finance workflows, including automating financial reports (49%) and creating intelligent forecasts (46%). However, generative AI is expected to expand beyond these functions. CFOs can anticipate the following benefits from generative AI:
- Easily ask questions in everyday language to quickly obtain insights, such as regional compensation variations, instead of laboriously creating individual spreadsheets.
- Undertake actionable tasks like developing customized dashboards or reports based on specific inquiries, which can be easily reused across the business.
- Streamline time-consuming tasks like user access management, allowing the finance team to efficiently handle technical responsibilities without external expertise.
5. Software Trumps Spreadsheets for Finance Leaders
We believe that managing financial performance is a collaborative effort. Nowadays, finance teams are embracing a modern approach by using FP&A platforms. These tools help enhance teamwork, automate tasks, and simplify processes for finance and accounting teams as well as the whole organization.
More finance leaders are investing more in FP&A technologies. Your FP&A solution can organize your financial data correctly and automatically consolidate data and allow you to see trends and anomalies in budgeting and forecasting.
Conclusion
As we navigate the complexities of 2024, CFOs play a pivotal role in ensuring organizational success. Prioritizing workforce planning becomes paramount, especially in the evolving landscape of remote and hybrid work environments. CFOs, evolving from mere financial managers to strategic advisors, must enhance collaboration with other business leaders. Moreover, the expectation for AI integration, particularly generative AI, is on the rise. Finance leaders anticipate benefits such as streamlined tasks, actionable insights, and improved efficiency through AI applications. The shift from traditional spreadsheets to collaborative FP&A platforms is evident, with finance teams recognizing the advantages of enhanced teamwork, task automation, and simplified processes.
