The Urgent Need for Finance Transformation: PwC, ACCA & CA ANZ Sound the Alarm

According to a new report by ACCA (the Association of Chartered Certified Accountants) and Chartered Accountants ANZ, in partnership with PwC, finance teams have just five years to transform or risk becoming irrelevant. The report, titled Finance Evolution: Thriving in the Next Decade, underscores the critical role finance teams play in fostering sustainable businesses and calls on CFOs and finance leaders to take immediate action.

Evolving Skill Sets for Finance Teams

Based on insights from over 150 finance professionals and 2,300 survey responses, the report reveals that businesses now demand a broader skill set from their finance teams. Retrospective reporting and traditional approaches to planning and forecasting are no longer sufficient for decision-makers. Instead, finance teams must adopt a forward-thinking, pre-emptive approach.

Key Challenges Identified by Survey Respondents

The report outlines several concerns raised by respondents regarding the role of finance within businesses:

- 38% highlighted a lack of clarity on how finance can add value to the business.

- 32% viewed finance primarily as a cost centre.

- 30% pointed out that current technology fails to meet the organisation's needs.

Embracing Technology to Drive Growth

Finance teams must adopt artificial intelligence, machine learning, and data analytics technologies to enhance decision-making and operational efficiency. These technologies allow finance teams to reduce manual tasks, improve efficiency, and position themselves as growth drivers rather than just number crunchers. The role of finance has expanded to include leadership in long-term value creation, including addressing sustainability challenges.

Barriers to Finance Transformation in the Middle East

In the Middle East, 64% of respondents stated that their organisation had either a fully or partially developed vision for the finance function. However, three significant barriers were identified in the region:

- 50% cited a lack of understanding of how finance can add business value.

- Finance is often treated as a cost centre.

- There is a lack of an organisation-wide collaborative culture.

“As the balance of effort in the finance function changes, 82% of the survey respondents in the Middle East saw an increase in compliance and control as the most significant. However, increases were expected in all areas of the function,” Fazeela Gopalani, Head of Eurasia and Middle East, ACCA, commented. “The autonomous function opens up new roles within finance although, at the present time, the survey respondents indicated a reluctance to embrace some of these. The Middle East respondents indicated that 24% had already recruited a data analyst, 10% a sustainability controller and none an algorithm auditor.”

Maintaining Ethical Standards Amid Transformation

As finance teams undergo this transformation, the report emphasizes the need to keep ethics at the forefront. With the increasing reliance on technology and data, a strong ethical foundation is essential to building and sustaining trust within organisations.

Helen Brand OBE, Chief Executive of ACCA, said, “For finance teams to stay relevant, they need to look ahead. CFOs and finance leaders must ensure they are measuring both the long-term and short-term goals of sustainable business models effectively. The role of the CFO is fast evolving beyond finance to encompass wider value creation and management.”

Ainslie van Onselen, Chief Executive Officer of Chartered Accountants ANZ, stated, “While the arrival of new technology presents exciting opportunities to radically transform and improve the way we work, the one thing that must never change is our profession’s strong ethical standing.  While we upskill and future-proof our technology capabilities, we must also remain firmly focused on the ethical role those financial professionals – especially Chartered Accountants – must play.”

Addressing Skill Deficits for the Future

The report also highlights notable skill gaps in the areas of digital, data, and sustainability. Addressing these deficiencies is crucial for finance teams to lead effectively in the coming decade.

Simon Seymour, Partner at PwC, noted, “Respondents highlighted their biggest skills gaps as digital skills, data skills and sustainability skills.  A critical question for the industry, as a whole, is why these skills gaps remain so pronounced and how far organisations should go to own the skills agenda, and not just rely on traditional training.”

A Call to Action for Finance Teams

The report concludes with a clear call to action: finance teams must embrace new technologies, cultivate critical skills in digital, data, and sustainability, and uphold the highest ethical standards. These steps are vital for ensuring that finance teams remain integral to their organisations' success in the future.