In today's rapidly evolving business landscape, the finance function must transform to stay relevant and drive value. 

Finance organizations today exhibit a range of maturity levels; some are struggling with cost optimization and real-time results, while others are on the journey towards real-time processes and strategic leadership.

By understanding key topics such as the evolving role of the CFO, the importance of automation and AI, data-driven decision-making, and the need for agility and continuous learning, finance leaders can build a resilient and innovative finance function that supports their organization's long-term goals.

Evolving role of the CFO and leveraging data

The role of the CFO has significantly evolved from traditional bookkeeping and compliance to a more strategic focus. Today's CFOs are expected to drive innovation, provide data-driven insights, and be at the forefront of value creation. This shift necessitates a finance function capable of delivering real-time, meaningful insights to improve decision-making.

CFOs and finance executives are increasingly relying on data to manage their businesses more effectively. The concept of "real-time finance" emphasizes the importance of perpetual availability of actionable and trusted financial insights. This shift towards always-on operational visibility integrates financial insights throughout the firm's operations, creating resilience and nimbleness.

Key elements of a future-ready finance function

Several best practices can help build a future-ready finance function:

• Agility: Adopting fluid operating models and global capability centers to respond quickly to changing business needs.

• Process and talent optimization: Benchmarking and improving practices to help ensure that the finance function is effective and efficient, and has the right roles and talent in place to meet goals.

• Automation and AI: Automating routine tasks and leveraging AI to streamline processes and focus on value-added activities.

• Data-driven decision making: Utilizing real-time data, scenario planning, and predictive analytics to navigate uncertainties and make informed decisions.

• Collaboration and upskilling: Ensuring finance team members are continuously learning and adapting to new technologies and trends.

Challenges and solutions in implementing automation

Implementing automation and AI comes with its challenges, such as ensuring data quality and gaining trust in new technologies. Starting small, conducting parallel testing, and gradually expanding automation initiatives are crucial. Clear communication and thoughtful training help team members adapt to new tools and processes.

Future-proofing the finance workforce

To future-proof the finance workforce, organizations must put people in the right roles and hold them accountable to KPIs or OKRs, as well as develop talent who can become successors. This involves offering training opportunities, encouraging continuous learning, and fostering a culture of innovation. The finance team of the future will need to be adept at interpreting data, asking the right questions, and providing strategic insights to drive business success. 

Best practices for building a future-ready finance function

Several best practices can help build a future-ready finance function:

• Standardization: Establishing standardized processes and policies as a foundation for automation and AI.

• Centralization: Centralizing finance functions like procurement and accounts payable to achieve efficiency and cost savings.  Evaluate options for outsourcing or shared services to focus the finance team on strategic issues.

• Cloud-based solutions: Shifting to cloud-based financial applications to minimize customization and enhance scalability.

• Upskilling teams: Providing opportunities for finance team members to learn new technologies and analytical skills.

Ready for the future?

Building a future-ready finance team requires a strategic approach that combines automation, data-driven decision-making, agility, and continuous learning. By embracing these elements and focusing on standardization, centralization, and upskilling, finance leaders can create a resilient and innovative finance function that drives value and supports the organization's long-term goals.

For a deeper dive, watch our webinar on “Building a Future-Ready Finance Team”.

^{This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.}