The finance function is under pressure to reassess its role and relevance as it moves into the next decade, according to a new report by PwC, ACCA and Chartered Accountants ANZ, published in Ireland today.
The report, titled ‘Finance evolution: Thriving in the next decade’, highlights the accelerating pace of business reinvention and the need for the finance function to redefine its role within the enterprise. The survey was carried out amongst over 2,300 finance professionals globally including in Ireland. This press release deals with the Irish results.
Finance functions need to be more strategic
The report suggests that finance functions need to be more strategic. Finance must be clear on what it needs to be known for, what it needs to deliver and create its own brand as a value driver. Just 22% of Irish respondents reported that their organisation currently has a fully developed vision for their finance function looking to the next three to five years, behind global peers (Global: 29%). Furthermore, just 13% said that the concept of value and purpose-focused accounting significantly influences the strategy of the finance function, far behind global peers (31%).
Technology the greatest barrier, far greater compared to global peers
Almost half (46%) of Irish respondents reported that current technologies do not meet their organisation’s needs, and is a much greater barrier to enhancing the role of the finance function compared to global peers (30%). At the same time three-quarters (75%) of Irish respondents agreed that AI could be a useful tool for data mining and analysis activities within the finance function in the next three to five years (Global: 71%).
Other key barriers to enhancing the role of the finance function include: a lack of funds to invest in people (Ireland: 32%; Global: 27%), a lack of understanding of the areas where the finance function can add business value (Ireland: 31%; Global: 38%) and poor quality data not supporting decision making (Ireland: 24%; Global: 23%).
Skills: greater gaps in key skills in Ireland compared to global peers
As their finance function develops over the next three to five years, more Irish respondents than global counterparts are concerned about skills gaps in key areas: digital tooling and technology (Ireland: 64%; Global: 52%); sustainability reporting (Ireland: 58%; Global: 47%) and data mining and analysis (Ireland: 53%; Global: 47%).
Stephen Noonan, Head of ACCA Ireland, commented: "New technologies and, in particular, Generative AI, have the potential to fundamentally change the role of finance professionals. Irish survey respondents had a more positive response than their global counterparts about the benefits that AI can bring across a range of finance activities. So the potential is clearly recognised and Irish professionals are keen to leverage these technologies.”
“The report also identified critical skills gaps with more investment needed in people. Organisations need to start projecting the future skill sets which they will need and then plan how they can make themselves more attractive to individuals with those skills.”
The report calls on CFOs and finance leaders to embrace new technologies, develop critical skills within their teams and uphold the highest ethical standards to ensure their organisations’ success in the coming years.
Ruth McNamee, PwC Ireland Finance Transformation Director, concluded: “The report finds that finance teams can no longer be seen as being in a support role and instead need to evolve and take on an increased span of control beyond its traditional financial remit. For finance functions to stay relevant, they need to look ahead. The role of the CFO is fast evolving beyond finance into the role of Chief Value Officer; encompassing wider value creation and management. As stakeholders and regulators seek greater transparency and granularity of reporting, the CFO also needs to help the business manage conflicting priorities, increased speed of innovation and new competitive threats.”
ENDS
Notes to editors:
What is a finance function
A finance function is a department within an organisation responsible for managing its financial activities. This includes budgeting, forecasting, financial reporting and ensuring compliance with financial regulations. The finance function also plays a crucial role in strategic planning, helping to guide the organisation’s financial decisions and long-term goals.
About the research
The research is based upon responses from over 2,300 global finance leaders around the world including 85 in Ireland. It aims to give insights into development of the finance function towards 2030 and beyond and the steps that finance leaders should start to consider now to prepare their function.
Countries and regions surveyed included: United Kingdom, Australia and New Zealand, Mainland China, United States, Malaysia, Singapore, Hong Kong, Pakistan, Republic of Ireland, Western Europe, Central and Eastern Europe, Middle East, Africa, Central and South America, and the Caribbean.
Finance functions are at the heart of organisations. They are responsible for providing trustworthy information to a variety of stakeholders, both internally and externally. The world is changing in many ways and the function cannot help but be changed itself by the same drivers.
Finance evolution: Thriving in the next decade
About PwC
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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. Find out more.
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.
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