However, according to a recent survey of CFOs and finance professionals conducted by consultants Kaufman Hall, there is still significant progress to be made in how organisations use financial data.
The survey highlighted several key findings:
90% say they need to do more with financial and operational data
Reporting and analysis functions must improve in order to access data more effectively
More than 70% say supporting decision-making is their number one goal
Less than 10% say they are “very satisfied” with performance management reporting
Less than 23% are very confident in their company’s ability to navigate unforeseen obstacles, partly due to outdated financial planning and analysis tools
More than 50% say it takes over three months to complete the annual budget
Only 38% use rolling forecasts
90% still rely on Excel for financial planning and budgeting
These statistics highlight the gap between the aspiration for data-driven decision-making and the reality of many finance functions today.
The Shift Towards Real-Time Analytics
A Forbes magazine interview with a CFO at the end of 2016 supported many of these findings. The interview predicted that as businesses become increasingly digital, real-time analytics will play a far greater role in financial management.
Spending an entire quarter preparing an annual budget that becomes outdated almost immediately will gradually become a thing of the past. Instead, data and analytics are becoming more reliable guides than static budgets.
As a result, technologies such as:
Artificial intelligence (AI)
Dynamic planning tools
Financial simulations
are expected to become far more prominent within finance functions.
Preparing for unexpected political or economic shifts requires predictive tools and algorithms, rather than relying solely on spreadsheets.
This means that tech-savvy CFOs will become increasingly important in guiding organisations through uncertainty.
At the same time, technology will reduce the amount of time CFOs spend on historically time-consuming transactional tasks and data gathering. This will allow finance leaders to focus more on providing strategic, real-time insight to the wider executive team.
What This Means for Finance Recruitment
From a recruitment perspective, finance teams below the CFO will also need to evolve.
Finance professionals with strong technical skills, data literacy, and an understanding of analytics are becoming increasingly valuable.
In particular, many organisations are looking to attract millennial finance professionals, who are often comfortable adopting new technologies and adapting their skill sets as finance tools evolve.
For organisations looking to modernise their finance function, bringing in individuals with these skills can help introduce new thinking, modern tools, and stronger analytical capabilities.
If your finance team could benefit from an injection of modern thinking and new skill sets, feel free to get in touch.
