The focus on the finance function’s job is still moving away from accounting and toward management. This emerging mandate is based on two tenets: first, that the finance function has a distinct end-to-end understanding of an organization; and second, that the Chief Financial Officer (CFO) has the business knowledge to operate as a co-pilot alongside the Chief Executive Officer (CEO), which explains the growing emphasis on business partnering. This acknowledges the crucial function played by management accountants, who act as stewards of the business model and apply the commercial financial discipline to decision-making and value development. To better enable “partnering for value to influence and shape how the organization develops and retains value,” the structure of the finance function and people who make up it are altering.
Technology is being used by organizations to increase the effectiveness of the finance department and develop new capabilities for it. An illustration of this is how businesses are utilizing technology to enable the automation of management information processes and offer self-service reporting to the rest of the company. As a result, this is helping to reduce the scope of “assembling, extracting, and offering limited understanding.” The demand for talent and abilities at two additional levels, however, is also increasing: “specialists providing greater insights in their areas of specialization” and “partnering for value to influence and shape how the organization develops and retains value.”
The finance department has always been tasked with concentrating on organizational efficiency and lowering operational expenses. This focus has ushered in lean operating procedures in many organizations, and there is no longer any fat to remove. Additionally, technology has advanced to the point where machines may be left to track process costs and identify efficient patterns. This change has changed the nature of the finance department by refocusing it on revenue and value development. The focus of these operations shifts to “partnering for value to influence and shape how the organization develops and retains value,” which is another factor contributing to the bulge in the structure of the finance function at this stage.
Further transformation is mandated by a new, common understanding of finance’s function. Change will be constant, therefore being able to adapt and handle it will help you have the agility you need to thrive. Project management and change management are already significant financial disciplines. Structure, system, and skill changes must be coordinated, and transformational progress must be monitored and controlled. The new standard for businesses is change.
For a very long time, accountants have had job security and promising career opportunities due to their knowledge of accounting and financial issues. In environments where teams collaborate, this expertise may be tapped into and cultivated. Teams promote specialization and knowledge sharing among coworkers. Delegating and supervising lower-value tasks allows for learning chances for tomorrow’s specialists.
Efficiency can be increased by concentrating subject area knowledge within teams. Teams may work in centers of excellence close to the company or in shared service centers (SSCs). To better serve the company, experts from several fields (such as logistics, data analytics, or computers) can collaborate on the same team. Using new technology, particularly cognitive computing, has the potential to increase productivity.
The makeup of the financial department will continue to change, with a focus on professional-level positions that provide these managerial and support abilities. However, due to the amount of specialized knowledge necessary, multidisciplinary teams will be formed, and professionals in data analytics, logistics, and other fields that are becoming more and more crucial will join the financial team. Finance won’t solely be the domain of accountants anymore.
