The secret to survival and growth in the ever-changing business landscape lies in adaptability. It’s like a magic word to business leaders amidst a time when CFOs (Chief Financial Officers) are being called upon to demonstrate their strategic prowess like never before.
We will take you through this edition of our newsletter, exploring the transformation of finance. Check out the crucial role that CFOs have to play while steering their organizations through turbulent waters.
The Evolving Role of CFOs In Organizations
Traditionally, CFOs used to handle mundane responsibilities that largely revolved around historical financial performance and compliance. However, the current economic climate is way more dynamic. At a time challenged by high inflation, recession, and a gnawing shortage of talent, the role of CFOs has evolved manifold.
Currently, CFOs are expected to serve as proactive strategic partners, driving key decisions and fostering organizational growth.
The Marketing Director at Xledger UK, Ian Halliwell, notes that “Real-time data will be essential in enabling CFOs to achieve this.”
In this challenging environment, CFOs must adopt a forward-looking perspective to identify risks and be prompt enough in seizing opportunities.
Leveraging Technology and Data
In the modern business paradigm, CFOs are powered by data and technology to lead the changes effectively. However, success in the digital world doesn’t solely rely on collecting data. The secret to success lies in understanding the right approach to leverage this data to evaluate risks, identify opportunities, and make decision-making contextual.
Halliwell adds, “Outsourcing the finance function enables businesses to run leaner, more efficient finance departments and frees CFOs to focus on more strategic roles.”
The Rise of Outsourcing Financial Services
Do you know that successful players in international markets outsource finance & accounting services? While this has been in practice for quite some time, the trend is rapidly gathering momentum. Forward-thinking businesses are leveraging cloud technology to offer secure and remote access to data. This has revolutionized finance management and reporting, empowering CFOs to drive transformation with new opportunities.
Simon Rowe, Partner at Milsted Langdon, observes, “Firms which previously felt that outsourcing to accountancy firms was the reserve of larger businesses are increasingly recognizing that the same technology is accessible to them”.
A report also reveals that by 2024, the financial sector will witness a rise in outsourced services for AI from 6% to 40%.
Outsourcing Is the Answer to Talent Shortage
Currently, the finance sector continues to struggle amidst a talent shortage. Statistics reveal a 36% decline in accountancy applicants YoY between June 2022 and 2023. No wonder, the dependence on CFOs during times of uncertainty or change would shoot up.
Outsourcing not only addresses resource challenges but also provides access to third-party knowledge and industry expertise. Therefore, CFOs can tap into broader industry insights to enhance their capability to drive growth and innovation.
With global enterprises quickly catching up with the digital transformation, the demand for Virtual CFO is on the rise. The IMC Group continues to lead the industry, partnering with global firms to handle outsourced financial and accounting services.
