In a fragmented software landscape, rapid technological advances, artificial intelligence, machine learning and cloud computing have exacerbated a growing skills shortage
RALEIGH, N.C., Sept. 10, 2024 (GLOBE NEWSWIRE) — insight softwarethe most comprehensive provider of solutions for the CFO office, has released its 2024 Finance Team Trends ReportThe report analyzes the challenges of data integration, the rise of artificial intelligence (AI), critical changes in cloud computing, and the continued impact of workforce and skills challenges in the finance and accounting sectors.
The study is based on responses to a survey of more than 500 finance professionals in Europe and North America. The survey results indicate that investing in intuitive tools is not just a cost-saving measure, but a strategic imperative. By bridging the skills gap with technology, companies can unlock the full potential of their finance teams, improve decision-making and drive business growth.
The report found that 93% of finance teams use multiple software tools and 94% use software from different vendors, resulting in 98% of finance teams experiencing data integration challenges. Poor management and integration of data from multiple sources, such as enterprise resource planning (ERP) platforms, is seen by 82% of finance teams as the biggest challenge when it comes to financial reporting, forecasting, and compliance. Integration issues lead to inefficiencies and inaccuracies, which ultimately hurt performance.
The increasing complexity of reporting and compliance is creating significant challenges for finance teams. Most organizations (98%) face one or more major challenges when integrating environmental, social, and governance (ESG) criteria into their financial reporting. Two-thirds of finance teams (66%) spend three or more days per month consolidating and collecting data for ESG reporting. To address this issue, nearly three-quarters (71%) of finance teams agree that an automated ESG reporting solution could significantly improve the effectiveness and efficiency of their finance teams.
Skills shortages have rapidly increased within finance teams, from 41% of organizations reporting challenges in the 2023 Finance Team Trends Report to a staggering 92% this year. Rapid technological advances, such as artificial intelligence, machine learning, and cloud computing, have transformed the finance function, requiring new and unfamiliar skills. The financial sector has experienced substantial growth, creating an increased demand for skilled professionals. Yet, there is a number down finance and accounting graduates. This, along with changing work patterns (such as teleworking and the gig economy), has made it increasingly difficult to find and retain qualified talent.
“Finance teams are faced with managing data from multiple tools and data sources, so it’s critical that they regain control with technology that seamlessly integrates with the systems they rely on every day,” said Josh Schauer, senior vice president of finance at insightsoftware. “Working in a fragmented software environment is no longer an option. Finance teams need to embrace an integrated platform that provides a unified view of their data. insightsoftware’s open enterprise data structure is the backbone of our platform, enabling deep customization and seamless technology integration. This empowers teams to gain tailored insights while improving efficiency and productivity.”
Additional key findings include:
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At least three-quarters (75%) of finance teams spend at least five to six hours per week recreating financial reports, which equates to 24 hours per month or 300 hours per year.
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While security (42%) and cost management (37%) are generally perceived as the main barriers to cloud migration, this research reveals that skills gaps within the IT team (45%) and integration challenges (42%) are the biggest challenges in practice.
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More than half of organizations spend at least 30 hours per month on high-level reporting tasks, with the most time-consuming tasks being tax preparation (60%), financial statement creation (59%) and ERP system maintenance (57%).
Download the full findings of the 2024 Finance Team Trends Report here to discover how finance teams can begin to address their data challenges and improve efficiency through the next stage of digital transformation.
To learn more about how InsightSoftware empowers the Office of the CFO to make timely, informed decisions, visit insightsoftware.com.
Research methodology
The insightsoftware 2024 Finance Team Trends Report was developed in collaboration with Hanover Research. It was created to better understand the current trends and challenges facing financial decision-makers. To achieve this goal, a quantitative survey was conducted among a sample of 500 finance professionals in Europe and North America. Participants were selected to represent a broad range of organizations and industries.
About Insightsoftware
insightsoftware is a global provider of comprehensive solutions for the Office of the CFO. We believe that actionable business strategy begins and ends with accessible financial data. With solutions spanning financial planning and analysis (FP&A), accounting, and operations, we transform how teams work, enabling leaders to make timely, informed decisions. With data at the heart of everything we do, insightsoftware enables automated processes, delivers trusted insights, builds predictability, and increases productivity. Learn more at insightsoftware.com.
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Daniel Tummeley
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PR@insightsoftware.com