Enhancing Finance Functions in a Changing Landscape

As companies grapple with economic volatility and geopolitical challenges, the role of tax and finance functions is gaining prominence in guiding strategic decisions and generating value. In this evolving environment, financial leaders are rethinking their approach to hiring and developing talent.

Upskilling for the Future

According to a recent survey conducted by Ernst & Young, 89% of finance and tax executives plan to upskill their existing workforce within the next two years. Stuart Lang, Global Head of Tax and Finance Operations at EY, emphasizes the importance of merging core finance skills with technology and data competences to adapt to the evolving demands of the industry.

“Our training programs should focus on enhancing skills rather than replacing them, keeping in mind that the competencies required have evolved,” Lang noted. This strategic focus on upskilling aims to prepare teams for the demands of a more complex business landscape.

Identifying Key Insights

Finance leaders are expected to offer crucial insights into various operational changes, such as transaction planning and supply chain dynamics. The EY survey highlights that 79% of respondents view these insights as a priority over the next two years. As businesses strive to be more strategic, maximizing time spent on high-value activities while minimizing routine compliance tasks is essential.

Navigating Macroeconomic Changes

In an environment shaped by ongoing macroeconomic challenges, CFOs must provide strategic clarity. The EY survey found that 81% of firms are reevaluating their supply chains in response to geopolitical changes, directly affecting tax outcomes. This raises the importance of a proactive tax function in adapting to shifting conditions.

Tackling the Talent Gap

As the demand for experienced accountants grows alongside an increasing talent gap, firms face significant pressures. Tax executives express concern, with 61% anticipating that the retirement of seasoned professionals will significantly impact their roles.

While technical abilities remain critical, there is a growing emphasis on finding candidates with “intangible” skills. The EY report indicates that 81% of executives prioritize hiring individuals with skills beyond technical tax knowledge, such as problem-solving and critical thinking, which are essential for future tax professionals.

Integrating Diverse Skill Sets

With the rise of artificial intelligence (AI), companies are expanding their hiring criteria to include diverse capabilities within tax and finance functions. Many are seeking data scientists or AI specialists to work alongside traditional accountants, enhancing their team’s efficacy in handling complex tasks.

Bridging Data Gaps

For finance teams, finding the right balance between finance and data skills is crucial in an AI-driven landscape. As the potential of AI unfolds, professionals must be adept at translating data insights into actionable business strategies. The EY survey reveals that 86% of organizations prioritize leveraging AI technology, but only 16% are very confident in their data strategy execution.

Lang highlights the need to overcome challenges in financial data management, stating, “How to leverage big data, how to fill data gaps, and how to automate processes?” These hurdles must be addressed to unlock the full potential of finance functions in a rapidly evolving economic environment.