Change in the current business climate is a constant. In the finance sector, professionals and teams have had to learn to ‘go with the flow’ in an ever-shifting landscape of regulations, tax, interest rates and ESG targets, all of which have fluctuated in the past decade.

However, there’s been a change of perception towards the finance team as a function of business. Now, with data analysis and number crunching able to be done by machines at speed, what is the role of finance teams in organisations, and what value and purpose can they add?

It’s a question CFOs globally are having to face up to, but thankfully, they are in the best position to drive the needed change from the C-suite and reshape the function of finance as we advance in the 21st century. This will balance both short-term financial objectives and long-term value creation as chief value officers.

Why do finance teams need to change?

ACCA’s recent report, Finance evolution: Thriving in the next decade, stresses the vital role finance teams play in building sustainable businesses and urges CFOs and finance leaders to take immediate action.

Businesses now demand a broader skill set from their finance teams, as retrospective reporting and traditional approaches to planning and forecasting alone no longer meet key decision-makers’ needs. Being pre-emptive and offering insightful recommendations are essential.

A skilled finance team should be highly valued by any business. Yet ACCA’s report found that 38% of respondents lacked clarity on how finance teams can add value to the business. The report also found that 32% saw finance teams as a cost centre to the business—and one that did not have the appropriate technology to meet the demands of the business (30% of respondents).

Finance teams must embrace technologies such as artificial intelligence, machine learning and data analytics, to enhance decision-making and operational efficiency. These technologies help finance teams reduce manual tasks, boost efficiency, and be recognised as key drivers of growth rather than mere number crunchers. Integrity of both internal and external reporting and data is essential and finance teams need to build upon these core competencies.

The role of finance has also expanded to include leadership on long-term value creation, including sustainability issues. Finance teams are increasingly involved with sustainability changes in their organisations. Non-financial reporting (such as emissions and environmental and social impacts) has fallen in with finance teams in many cases. This added responsibility is a double-edged sword. On one hand, it recognises the value a finance team can bring, using their analytical skills to report on data, but it also puts pressure on an already busy team.

As a result of these factors, ACCA predicts that finance teams have as little as five years to evolve and retain their relevance in business as a skilled team that is able to tackle challenges and prepare for the future.

How can CFOs make change happen?

As the finance representative at the boardroom table, CFOs have a responsibility to lead their teams to success. In a time of change, the CFO needs to be bold and lead by example, driving behaviour or cultural changes from the top down, nurturing success in new ways, continually building skills in the team, and ensuring cooperation within the business for a holistic approach.

The world of business has changed vastly in even the last ten years. The skills now sought (and even required) in successful finance teams are now much broader. Skills of consultancy, analysis, organisational performance and more are now in demand among finance professionals. A CFO is likely to have some or all of these skills and can foster an environment where the team learns from example and upskills accordingly to align.

With their insight into the C-suite level of planning, the CFO is well placed to understand the overall goals of the organisation. Having oversight means the CFO can integrate skills, learning, recruitment and technological advances into the finance team that not only fit the organisation’s needs, but also ensures the finance team is adding value to the wider organisation by aligning.

Building in a sustainability approach with a CFO at the helm is another way of creating positive organisational change. ACCA advocates for the adoption of the five-point agenda for sustainability action, which lays the foundation for a measured approach to sustainability practices with finance teams as the drivers. Sustainability will only continue to rise on the agenda of businesses around the world, so being trailblazers in this field will set finance teams up for success as leaders.

The CFO can also help with shifting the image perception of finance teams from ‘number crunchers’ to big-picture thinkers who have oversight (and insight) into the financial side of the business, supply chains, and sector. Better integration and making finance teams more accessible to the wider business can break down any barriers and demonstrates the finance function value.

Finance is an integral part of business, and one that should not be overlooked or underestimated for the role it can play in bringing value to the whole organisation. The challenge that finance teams face is one that can be tackled by taking a people-first approach, asking where value can be added, and thinking ahead with a holistic viewpoint in mind.

The next five years will be a huge time of transition and transformation for finance teams and their functions. CFOs will need to step up and lead from the top to carry their teams through these challenges, and come out the other side with success.

Clive Webb is the head of business management in ACCA’s Policy and Insights team.