“The COVID-19 pandemic will not last forever; however, its impact is irreversible, cementing pre-pandemic trends, such as remote working and online customer engagement, firmly into place. In such a rapidly and continually changing world, it’s unsurprising that 83% of respondents to Sage research say that business finance and accounting have become much more complex,” according to Sage’s Digital CFO: From number-cruncher to storyteller research.
As Joanne Carew states, “finance leaders have experienced a sudden increase in the complexity and volume of their work. And while the same research shows that they are now held in higher esteem by board members, these changing expectations demand that finance leaders reinvent themselves from being number crunchers into strategic storytellers who turn financial data into real business insights.”
According to Sage’s Digital CFO: From number-cruncher to storyteller research, these are the seven new realities in the future workplace of finances:
| Skills needed before the pandemic | Skills needed NOW | ||
| 1 | Accounting and financial reporting | 1 | Accounting and financial reporting |
| 2 | Data security | 2 | Digitalisation/digital transformation (63%) |
| 3 | Risk management | 3 | Data security |
| 4 | Product/service innovation | 4 | Risk management |
| 5 | Supply chain management | 5 | Product/service innovation |
| 6 | Digitalisation/digital transformation (44%) | 6 | Storytelling/turning data into narratives (33%) |
| 7 | Storytelling/turning data into narratives (16%) | 7 | Supply chain management |
“Our study concluded that finance leaders can no longer use numbers to report what is simply, but they must now turn data into compelling narratives that offer accurate forecasting and interpretation of trends,” finishes Mongezi Lupindo.
Skills Needed in Finance in 2022
Accounting and Financial Reporting
The recording and reporting of financial data that go in and out of its business operations will allow both company managers and outside investors and analysts to understand the company's health and make informed decisions, according to Amy Drury.
Digitalization/Digital Transformation
Digitization triggers fundamental changes in the finance function. Companies overhaul ERP systems, automate accounting processes and deploy AI, amongst other technologies, to manage and utilize financial data. The challenge for CFOs will be to understand how digital finance tools can support broader business transformation programmes, predicts PwC.
Data Security
Data Security for financial services has always been a priority, especially now as the industry is going through massive digital transformation driven by changing consumer habits, competitive pressures, and technological advances, states Thales.
Risk Management
Not giving due importance to risk management while making investment decisions might wreak havoc on investment in times of financial turmoil in an economy, according to The Economic Times.
Product/Service Innovation
Over recent decades, innovative products have transformed the financial services industry. From payment types (credit and debit cards), transaction processing (online banking), saving options (investment funds) and e-commerce for financial assets, are some of the examples Richard Summerfield gives to describe this role.
Storytelling/turning data into narratives
Data-driven finance optimizes business performance through broader and deeper visibility into operations, more insightful analysis and more rigorous, fact-based decision making, defines Teradata.
Supply Chain Management
Supply Chain became a haven for nonbanks and fintech that are looking to disrupt the Finance field by leveraging the latest technologies, such as artificial intelligence, blockchain and tokenization. They also serve a niche, such as SMEs, that large global trade banks typically overlook, says Anita Hawser. This role is mainly outsourced nowadays.
Read the complete Digital CFO: From number-cruncher to storyteller white paper published by Sage.
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3 Comments
This is a very insightful article. Thank you for posting.
2 years agoThe Finance Department within my organization have been utilizing story telling needs and requesting narratives from data, be it for budgeting etc., for a few years now. It definitely helps to present a broader picture.
2 years agoIt requires a more in-depth analysis and trends forcasting rather than just intrepreting the data.
2 years ago