CPA 2027: Corporate Finance Refocuses
In the coming years, corporate finance teams will see a shift away from old-fashioned number-crunching and toward automation, data analysis, and strategic insights.
By Derrick Lilly | Digital Exclusive - 2021
It’s not only CPAs in public accounting firms that need to refocus or realign their skill sets to retain their relevance. CPAs in corporate finance, government, and nonprofits face many, if not all, of the same changes and challenges along the road ahead. Some may even be more at risk due to the economic impact of COVID-19 and associated cost-cutting measures.
In fact, 46 percent of the finance and accounting professionals surveyed for Invoiced and CFO Drive’s “The Financial Automation Imperative” report said financial automation would be even more of an imperative in a recessionary economic environment. Digging deeper into their findings, reporting/forecasting and accounts receivable were respondents’ top automation priorities, followed closely by tax compliance, financial close, budgeting, risk management, and accounts payable, which were characterized as high or very high priorities.
The goal? “Improving productivity, reducing human error, and refocusing staff time on strategic work are the top hopes for financial automation,” the report states. This coincides with the Society’s 2019 Strategic Planning Survey findings where 92 percent of respondents agreed financial statement preparation and basic financial operations, such as accounts payable, accounts receivable, and inventory control will be automated by 2027. In turn, the Society says technology systems will generate data that organization leaders will look to CPAs and corporate finance staff to analyze and use to build further strategic insight, thus marrying finance and management into a partnership focused on driving profitability and growth.
Given the current economic outlook and health concerns for employees, this partnership is likely to develop quickly as technology and automation priorities have only revved up since the beginning of the COVID-19 pandemic, which is also driving another concept: touchless transactions.
“Transactions will be touchless as automation and blockchain reach deeper into finance operations,” Deloitte predicts in “Crunch Time V: Finance 2025,” a report on its outlook for the future of finance. “In the years ahead, cloud-based ERP, automation, and cognitive innovation will continue apace, creating opportunities to radically simplify processes and free up people. Adding blockchain to the mix will only accelerate this trend. As this transition picks up speed, the capacity of humans to add value will be unleashed.”
Deloitte also shares the Society’s outlook, noting, “With operations automated, finance will double down on business insights and service. People will spend less time preparing data for analysis, and more time asking, ‘What does this tell me about the business?’ and ‘How can the business close gaps in performance expectations?’ Answering these questions requires an understanding of financing and capital and being able to advise on resource deployment. This is a big shift from how many in business finance operate today.”
In other words, finance has the potential to have a real say in how business decisions get made. But Deloitte also cautions that success is not assured: “Whether Finance continues to direct the resources currently under its control will be dependent on its ability to add value. That will require quality insights and exceptional customer service.”
How can CPAs steer their skill sets in this direction? Take hints from Accenture’s prediction that by the end of this year finance staff could be spending up to 75 percent of their time on decision support, predictive analytics, and performance management. And take note of the guidance in the KPMG and Forbes Insights report, which suggests focusing on the capabilities C-suite and financial executives are increasingly seeking in their advisors: Technology skills, communication skills, critical thinking and judgment skills, investigative financial skills, and an ability to work across silos.
The bottom line is that CPAs must take the lead in discovering their organizations’ needs and begin seamlessly offering the strategic insights business leaders value to continue being trusted to guide them through an ever-changing future.
This is part five of a seven-part series taken from “CPA Profession 2027: Racing for Relevance,” a 2020 Insight Special Feature from the Illinois CPA Society. Read parts one, two, three, and four.