According to a new report by ACCA (the Association of Chartered Certified Accountants) and Chartered Accountants ANZ, in collaboration with PwC, finance teams have just five years to transform or face the risk of becoming obsolete. The report, titled ‘Finance Evolution: Thriving in the Next Decade’, underscores the critical role finance teams play in building sustainable businesses and calls on CFOs and finance leaders to act swiftly. Immediate action is essential to ensure their teams remain vital contributors to their organisations’ future success.

Drawing on insights from over 150 finance professionals and 2,300 survey responses, the report shows that businesses now require a more comprehensive skill set from their finance teams. Traditional methods of retrospective reporting and conventional approaches to planning and forecasting are no longer sufficient to meet the needs of key decision-makers. Instead, a proactive and forward-thinking approach is essential to stay ahead.

The report highlights some ongoing concerns raised by survey respondents:

• A lack of clarity on how finance can add value to the business (38 per cent)

• Finance being seen mainly as a cost centre (32 per cent)

• Current technology not meeting the needs of the organisation (30 per cent)

Finance teams must leverage technologies such as artificial intelligence, machine learning, and data analytics to enhance decision-making and operational efficiency. These technologies enable finance teams to minimise manual tasks, enhance productivity, and position themselves as key drivers of growth rather than just number crunchers. Additionally, the role of finance has evolved to include leadership in long-term value creation, including addressing sustainability challenges and driving strategic initiatives.

However, the report also emphasises that as finance teams undergo this transformation, maintaining a strong ethical foundation remains paramount. With the increasing reliance on technology and data, it is essential to uphold rigorous ethical standards to build and sustain trust, ensuring that technological advancements are leveraged responsibly and transparently.

Helen Brand OBE, chief executive of ACCA, said, “For finance teams to stay relevant, they need to look ahead. CFOs and finance leaders must ensure they are measuring both the long-term and short-term goals of sustainable business models effectively. The role of the CFO is fast evolving beyond finance to encompass wider value creation and management.”

Ainslie van Onselen, chief executive officer of Chartered Accountants ANZ, stated, “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.”

Moreover, the report highlights significant skill deficits in the areas of digital, data, and sustainability. Addressing these gaps is essential for finance teams to lead effectively in the next decade.

Simon Seymour, partner at PwC, noted, “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 organisations should go to own the skills agenda, and not just rely on traditional training.”

Compared to many other regions, the Caribbean appears to be in a stronger position. Seventy per cent of respondents indicated that their organisation had either a fully or partially developed vision for the finance function, looking three to five years ahead — the highest proportion for this question, compared to 66% globally. However, only 22 per cent of respondents said their organisation had a fully developed strategy in place.

The three most significant barriers to enhancing the role of the finance function in this region were:

 the current technology suite not meeting the organisation’s needs

 difficulties in addressing inconsistencies between long-term and short-term priorities; and

 a lack of funds to invest in people.

Paula Marcelle-Irish, head, ACCA Caribbean, said: “As the focus within the finance function shifts, 84 per cent of survey respondents in the Caribbean identified increased compliance and control as the most significant change, followed closely by 77 per cent who noted a rise in transactional efficiency. However, growth was anticipated across all areas of the finance function.

“The rise of autonomous functions is unlocking new opportunities within finance, though survey respondents have shown a degree of hesitation in fully adopting these advancements. In the Caribbean, 28 per cent of respondents have already integrated data analysts into their teams, and nine per cent have appointed sustainability controllers. However, the recruitment of an algorithm auditor remains untapped, with no respondents having yet embraced this emerging role.”

The report issues a compelling call to action: finance teams must not only embrace cutting-edge technologies but also develop crucial expertise in digital transformation, data analytics, and sustainability. At the same time, they must uphold the highest ethical standards to ensure they remain indispensable to their organisations. By doing so, they will not only safeguard their relevance but also become key drivers of their organisations’ long-term success.

About ACCA

We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.

Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries.

Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organisations and economies.

Guided by our purpose and values, our vision is to develop the accountancy profession the world needs. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that drives a sustainable future for all.

Find out more at: www.accaglobal.com

About Chartered Accountants ANZ

Chartered Accountants Australia and New Zealand (CA ANZ) represents more than 136,000 financial professionals, supporting them to build value and make a difference to the businesses, organisations and communities in which they work and live. Around the world, Chartered Accountants are known for their integrity, financial skills, adaptability and the rigour of their professional education and training. Find out more at www.charteredaccountantsanz.com

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 151 countries with over 364,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com