The Expanding Role of Finance Teams
In the rapidly changing landscape of business finance, finance teams are being called to broaden their skillsets and adopt new technologies. According to a report by the Association of Chartered Certified Accountants (ACCA) and Chartered Accountants ANZ, in collaboration with PwC, finance teams have a five-year window to transform or risk becoming obsolete.
The report, titled "Finance Evolution: Thriving in the Next Decade", is based on feedback from over 2,300 finance professionals and emphasizes the expanding role finance teams play in building sustainable businesses. Traditional approaches to financial reporting and forecasting no longer suffice.
The Need for Broader Skill Sets
Businesses today demand that their finance teams possess a broader skill set, which includes proficiency in technology and an ability to anticipate future needs, rather than just reacting to current situations. This preemptive approach is critical for decision-makers who rely heavily on finance teams for future planning.
Md. Sajid Khan from ACCA highlights that 74% of respondents in India and South Asia have a future vision for their finance functions, which is notably higher than the global average of 66%.
Barriers to Transformation
In South Asia, several challenges impede this transformation. These barriers include a lack of organizational collaboration, limited understanding of the value finance can add, and finance being primarily viewed as a cost center rather than a strategic partner.
Embracing Technology
Globally, finance teams are urged to adopt technologies such as artificial intelligence (AI), machine learning (ML), and data analytics to enhance both decision-making capabilities and operational efficiency. Ainslie van Onselen of Chartered Accountants ANZ stresses the importance of maintaining ethical standards while developing these tech skills.
Addressing Skill Gaps
The report reveals significant gaps in digital, data, and sustainability skills among finance professionals. Simon Seymour from PwC notes that addressing these gaps is crucial for finance teams to lead effectively in the coming decade. Organizations need to consider why these skill gaps exist and how they can develop a comprehensive skills agenda.
Conclusion: The Path Forward
To remain relevant and drive their organizations forward, finance teams must embrace digital transformation. This involves developing new skills in digital technology, data management, and sustainability, while upholding ethical standards. Proactivity and collaboration across organizational boundaries will be essential in this transformative journey.
