Technological advancements in the accounting and finance profession have required finance professionals to adapt and expand their skill sets. Those who can adapt can support business growth and discover better career opportunities.
The Future of Finance 2.0 Research Emerging Themes paper looks at how finance has been affected by recent global changes that have been accelerated by the COVID-19 pandemic and discusses the skills needed to progress and improve the accounting profession.
The Research and Development Team at AICPA® & CIMA® worked with companies, regulators and experts to determine what employers and businesses need. They also examined the duties and abilities of accounting and finance professionals and the reasons the industry is changing. Through interviews and roundtables, researchers identified several key emerging themes, including the changing role of finance, digitalisation, sustainability and workplace evolution.
The research reveals how these key themes and other factors have increased the significance of business partnering within the evolving finance function.
The role of finance is constantly evolving and growing in response to today's ever-changing landscape. Finance professionals must adapt to expanding responsibilities to ensure that financial operations remain efficient and effective while also maintaining a keen eye on the future and anticipating potential challenges.
Finance roles are becoming less defined
Gone are the days when finance duties were solely about keeping track of financial records and generating reports. Now, businesses task management accountants with creating value for their organisations.
Fortunately, advancing technologies have automated many routine tasks, freeing up time and resources for more strategic activities and collaborations.
The finance industry is experiencing growth and exerting influence in various areas such as technology, sustainability, and leadership, showing how finance is shifting and adjusting to the changing needs and demands of the industry.
The AICPA & CIMA Future of Finance research programme outlines upcoming developments in finance and accounting and the necessary skills for finance professionals in the future.
Key factors driving change
As the finance industry evolves, businesses must adapt and transform their financial management strategies.
Companies must examine current practices and implement new approaches that align with emerging trends and shifting markets to position themselves for long-term success and sustainability.
‘A lot of it comes down to thinking outside the box’, said Rebecca McCaffry, FCMA, CGMA, Associate Technical Director, Research and Development at AICPA & CIMA. ‘Accountants come from a profession that's very rules driven. And in the last few years, the world has turned on its head, and we've had to learn how to do things differently’.
The research paper examines how changes in finance impact businesses in various ways:
Digitalisation: Advancements in technology allow finance to play a crucial role in managing company data. Finance professionals can analyse this data to provide valuable insights that benefit businesses. With the help of technology, finance can take the lead in areas such as data strategy, management, quality control and governance.
Sustainability: Finance is leading the charge in highlighting the importance of sustainability and achieving environmental, social and governance (ESG) objectives. This focus on sustainability widens the role of finance, requiring accountants to analyse new data sets to gain insights and interact with a broader range of stakeholders.
Workplace evolution: The COVID-19 pandemic created a shift towards long-term remote and hybrid working arrangements. Despite this change, finance professionals are still actively engaging with other departments instead of working independently on analysis and reporting tasks, leading to collaborations that help businesses work better together.
‘It's about adopting a more creative mindset, being more innovative and challenging the rules now ... perhaps the way that we've always done things is not the only way. There's an opportunity to challenge and do things differently’, said McCaffry.
Management accountants and finance professionals are evolving into tech-savvy analysts, decision-makers and collaborators. They are improving and growing companies from within by supporting new ways of working and changing standard business models to achieve success.
Cultivating a variety of skill sets and talents
Future finance teams will be composed of generalist and specialist positions that demand a combination of technical expertise and enabling skills like communication and collaboration.
Team members must possess a range of abilities to successfully navigate the ever-changing financial landscape and meet the needs of today's businesses.
As digitalisation reshapes the finance industry, analysis, storytelling and persuasion are sought-after skills. Professionals must also know areas such as data strategy, management, quality assurance, governance and traditional financial expertise to succeed.
Sustainability is now a big part of most finance jobs, demanding improved analysis, critical thinking and decision-making. Accountants are responsible for sharing ESG value creation stories and actively measuring and managing intangible value. Understanding the fundamentals of ESG is important to help businesses develop strategic and sustainable actions.
Finance professionals partner more with other departments as the industry evolves. Learning about finance business partnering essentials is key to enhancing skills and strategies that drive business success.
To do the job well, it is important to possess desirable skills including creativity for innovative solutions to complex problems, communication and collaboration for effective teamwork and adaptability to changing business environments and strategies.
‘Accountants have an important role to play, but there's a lot of innovation that comes from working with others’, said McCaffry.
‘It's important to recognise that great ideas can come from outside of finance ... they can come from outside the organisation’.
Download the Future of Finance 2.0 Research Emerging Themes paper to explore in-depth insights into the transformative changes occurring in the financial sector and the required skill sets for accounting and finance professionals.
The Future of Finance research programme will continue to delve into the latest industry developments and themes through upcoming papers.