Future Finance Function(3F's)

As the finance function moves further into the digital era, one of the biggest questions CFOs are asking is, “Are we ready?” Technology advancements and the proliferation of data are dramatically reshaping the role of the finance function. As companies face increasing competition and ongoing change, they expect finance to leverage technology and turn data into insights they can use to guide strategy and support decision-making.

But while data and technology can create greater value, there will be no real benefit to the business without the right people with the right skills to use them effectively. Finance leaders should begin preparing now for the team they will need in the future, or risk falling behind.

A look at the future finance function and what skills will be needed to support it based on research from multiple studies and industry experts. We’ll also discuss the current readiness of finance teams, and how finance leaders can find and develop the talent they’ll need.

Data and Analytics

While traditional accounting and finance skills will always be important, the finance team of the future will look very different than it does today. The “next evolution for the finance function will be to become a data-driven decision centre.”

With access to unprecedented amounts of information, finance teams will drive planning and support management across the business. Finance will focus on looking forward and using predictive analytics to model and predict the future, forecast performance, and manage risks. According to the study, 57 percent of group CFOs believe that delivering the data and advanced analytics for business intelligence and management information will be a critical capability for tomorrow’s finance function.

Business Partnership

Closer partnerships with other parts of the business will be an imperative. Future finance teams will need to work closely with executives and operational leaders across the business in a number of different ways.

Many finance organizations look to improve in this area.  67 percent of CFOs worldwide believe that improving business partnering between finance and the business is a major priority.

The study suggested one potential model could include a finance business partner, data scientist, and a leadership team member working together. Leadership identifies a problem and shares with the finance business partner; that person then works with a data scientist to analyze the data, identify reasons for issues and trends, and model different scenarios for solutions.

Technology

Technology will play a significant role in supporting the future finance function in two main ways: automating traditional functions and enabling more sophisticated analysis and insights. The future of finance will be one that embraces technological innovations to improve effectiveness, increase efficiency, and enhance insight.

Cloud models are helping to streamline and automate business processes and transactional activities that have held finance teams back from focusing on strategy. In fact, the study predicts that all transactional finance processes will be fully automated in centres of excellence,” a model based on shared services, managed services, and outsourcing.

Due to the continuing automation and consolidation of financial systems, the finance team is evolving from an organization centered on transactional responsibilities to one tasked with providing the business with analytics and strategic insight.

Conclusion : Success of the future finance function will come from having both the right technology and the right talent and skillsets. Now is the time to explore if your finance team is ready and what will be needed to support the future needs of the business.