In the era of economic changes, it cannot be denied that the role of finance professionals has become more and more important. Financial constraints have created a host of issues, such as greater risks of layoffs, intense competition to stay in the market and headaches in delivering efficiency while driving down costs.
Therefore, are finance professionals themselves ready to take on higher responsibilities? This blog article will identify the top three obstacles finance professionals may face to help them fill the gap between the old and new role.
The first and the most important constraint that finance professionals face is combining their core accounting skills with the commercial awareness and managerial knowledge needed to support the strategic decision process.
Finance professionals mainly work with figures, numbers, reports, etc. Once taking on a broader role, they need to provide insight and advice, not just information. Therefore, they need skills and knowledge in other business areas such as sales, marketing, operations, etc. to produce effective practical solutions.Read more: Why Management Accounting is Essential for Sustainable Success
The finance function’s current workload limits its capacity to take on more responsibilities. Their traditional tasks such as internal reporting, external reporting, routine accounting processes, etc. are taking all of their focus because all of the time they consume. Although finance professionals want to contribute by providing the board of managers decision support and advice, they hardly have any spare time for these opportunities.
In many organisations, finance functions lack a clear mandate to take on a broader role or to provide leadership. They would like to help provide managerial and decision advice, but they are afraid that they may step on each other’s feet. In fact, finance professionals should have an authority to collaborate with business managers to help ensure the business’s success and tackle financial constraints.
Finance transformation from the traditional role to a broader and more complex role requires the cooperation of both employees and employers. Find out what finance managers think and best practices of finance transformation in the CGMA report “New skill, existing talents – The new mandate for finance professionals in supporting long-term business success”.