Most Important Developments for the CFO to Keep an Eye On

The CFO's office and how it functions have evolved dramatically over the last few decades. As businesses seek to build future-proof processes, they are scaling, adapting, and leveraging existing operations.

FREMONT, CA: Over the past decades, the CFO's office and operations have significantly changed. Existing processes are being scaled, adapted, and leveraged to create future-proof procedures. As the company's core decision-makers, the modern CFO office is undergoing metamorphosis. They concentrate on two major areas: a) Implement digital transformation to accomplish existing objectives b) Keep an eye on financial trends for the organization's following decade of leadership. Let's concentrate on the top ten trends, both within and outside the finance function, to construct the road map for a CFO office of the future.

Adoption of technology in internal departments

Following digital transformation, businesses are preparing for innovation. As the financial gatekeeper, the CFO office monitors departmental reorganizations. CFOs with foresight continue to witness transformation, especially in the marketing and sales departments.

These two departments have never been more open to change. Hybrid sales, enterprise-wide automation, and digital marketing direct their success story.

CFOs have the chance to develop new business models to accommodate the expanding needs of numerous departments. This level of digital engagement requires both financial and material resources.

Zero-based budgeting

Zero-based budgeting (ZBB) is replacing traditional budgeting techniques as an uncertain financial catastrophe looms. To address business strategy, value creation, and resource allocation, CFOs are rethinking businesses from the ground up.

In a recent report, McKinsey & Company noted, "43 percent of the 127 CFO respondents questioned lately highlight the need to streamline their entire budgeting processes to respond more quickly and effectively."

As CFOs plan annual budgets, ZBB grows in popularity to reduce costs, achieve quick wins, and forge a new path to business continuity. Cloud computing and AI also facilitate the adoption of low-risk ZBB models by CFOs.

Data visualization and governance models

Today's CFOs steer the organization with decisions informed by real-time data. According to a poll conducted by Accenture, 99 percent of CFOs believe that real-time data is essential for managing disruptions, but just 16 percent believe they are fully capable of doing so.

CFOs continue to prioritize high-quality data analytics and visualization, but implementing the proper solutions cannot be easy. For this trend to be unlocked, it is imperative to begin sorting data functions inside and outside organizations.

A finance team can optimize cash flow, make accurate forecasts, and integrate planning across business units if it can access better data sources. CFOs must also develop data standards and implement data governance.