Tariro Mutizwa | Regional Vice President – Africa | AICPA & CIMA, together as the Association of International Certified Professional Accountants | mail me |
New research shows that sustainability and technology are driving changes in the accounting and finance profession.
A significant part of the work we do is about looking at trends within the profession and using them to discern what the future of accounting looks like, to best prepare our members to thrive within it.
This is the rationale behind the Future of Finance 2.0 research project, which highlights and explores what is the most significant long-term trend which is currently reshaping the accounting and finance profession, and it essentially relates to mindset.
In the past, it would be fair to characterise the accounting and finance profession as being quite rigid and rules based. This is not intended to be derogatory – it is simply a reflection of the work we did and the career paths we followed to do it. What we are seeing today, and will see more of in the future, is a shift towards a more expansive mindset, with value-creation at its heart.
The work of finance and accounting professionals will incorporate a wider range of responsibilities, including but not limited to being the stewards of sustainability data and strategy and working with colleagues in all parts of the organisations we serve to drive efficiency, productivity, and sustainable value creation.
Sustainability – a key driver of the profession
Sustainability is one of the key drivers of change within the profession, but it is important to understand that this is not just a response to regulatory changes that require us to present the data. While these are obviously important, it is important to look beyond this, and to apply the value creation mindset I have mentioned, because this is where the opportunities are.
Forward-thinking organisations are not approaching this in terms of “we have to report”. They are looking at how their business models can…
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Read the full article by Tariro Mutizwa, Regional Vice President – Africa, AICPA & CIMA, together as the Association of International Certified Professional Accountants, as well as a host of other topical management articles written by professionals, consultants and academics in the August/September 2024 edition of BusinessBrief.
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Related FAQs: Future of finance teams
Q: What is the role of finance leaders in shaping the future of finance?
A: Finance leaders play a crucial role in redefining and reshaping the finance department by driving finance transformation initiatives, embracing automation and leveraging big data to provide business insights that guide strategic decision-making.
Q: How can finance teams prepare for the future amidst evolving technology?
A: Finance teams can prepare for the future by embracing modern finance practices, investing in up skilling their staff and adopting technologies such as machine learning and robotic process automation to enhance financial processes and improve efficiency.
Q: What are the key finance functions that will be affected by automation?
A: Key finance functions affected by automation include accounts payable, financial planning and forecasting. Automation streamlines these transactional activities, allowing finance teams to focus more on strategic tasks that add value to the organisation.
Q: In what ways can finance leaders utilise business insights for risk management?
A: Finance leaders can utilise business insights derived from agile financial data analysis to identify potential risks, create effective risk management strategies and make informed decisions that safeguard the organisation’s financial health.
Q: How does the finance operating model need to evolve in the future?
A: The finance operating model needs to evolve to include a greater emphasis on business partnering, where finance executives collaborate closely with business leaders to drive performance and strategic initiatives, moving away from traditional finance roles focused solely on transactional activities.
Q: Why is upskilling important for finance staff in the context of future finance?
A: Up skilling is crucial for finance staff as it ensures they possess the necessary skill set to adapt to new technologies, understand financial data analytics and effectively contribute to the finance function of the future, enhancing their value within the finance organisation.
Q: What impact did COVID-19 have on finance teams and their operations?
A: COVID-19 accelerated the need for finance teams to adopt agile practices, enhance their risk management strategies and leverage automation technologies to adapt to rapidly changing business environments and ensure continuity in financial processes.
Q: What are the benefits of generative AI in the finance department?
A: Generative AI can enhance the finance department by automating complex financial processes, providing deeper insights through predictive analytics and improving forecasting accuracy, which ultimately helps finance leaders make more informed decisions.
Q: How do finance teams align their strategies with the evolving role of finance?
A: Finance teams align their strategies with the evolving role of finance by focusing on becoming strategic business partners, utilising advanced analytics to inform decisions, and engaging in finance transformation efforts that prioritise value creation over traditional financial reporting.
