New Report Explores the Changing Role and Responsibilities of the CFO

The CFO role continues to evolve to match the changing needs of organisations. With responsibilities that traditionally centered around the financial health of a company, the CFO now plugs in to employee experience, sustainability efforts, transformation through technology, and more—previously, responsibilities held exclusively by other C-level executives. Today, the CFO partners with colleagues in the C-suite, like the CHRO, to ensure each facet of the organisation runs smoothly. 

SAP Concur recently surveyed 220 finance leaders from seven markets to better understand the current challenges, opportunities, and evolving responsibilities that their role now encompasses. Key findings from the report, released today, include: 

• Four out of five top external business challenges—from the perspective of the finance leader—relate to global economic turmoil. Geopolitical tensions, worsening financial conditions, rising costs of capital, and increasing operating expenses all make the list, with regulatory compliance rounding out the top five. 
• In response to the uncertainty, CFOs say they are adapting by increasing monitoring of market conditions (57%) and investing in innovation (40%) and cutting-edge technologies such as automation and artificial intelligence (33%). Fifty-five percent of CFOs are investing in data analytics and reporting tools right now.  
• Many CFOs are wary of artificial intelligence: 68% believe it threatens their own position. However, they also acknowledge its benefits to organisational efficiency, as 82% believe it will make business operations leaner. 
• Only 11% of finance leaders included climate change among their top three external challenges—likely impacted by the current economic landscape. Interestingly, they report feeling the greatest pressure to operate sustainably from investors, not their customers, government, employees, or regulators. 
• CFOs at mid-size companies face unique challenges. Nearly twice as many mid-size firms are tightening budgets compared to larger companies. Only 16% of CFOs at mid-size organisations say they are investing in cutting-edge technology, versus 42% at large firms. And 42% of finance leaders at mid-size companies say their forecasting is hindered by their lack of analytics capabilities. 
• As noted previously, CFOs are finding themselves working more closely with other C-level executives. Eighty percent of survey respondents believe they must work more effectively with HR heads, and 87% say the crossover between finance and HR is more significant than ever. 

 

How to Become the Next CFO 

If you have ambitions to move into the C-suite, there's no time like the present to start thinking about your next steps. Learn more about what it takes to become a CFO. 

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For more information, download the full report, “CFO Insights Report: A New Role in Managing Uncertainty.” 

The SAP Concur CFO Insights survey was conducted via phone to web survey by alan. between July 28 – August 18, 2023, among 220 finance professionals in organisations with a headcount of >500 in 7 markets: Australia, Brazil, Canada, Germany, Mexico, UK, and U.S.