Business transformation is happening faster now than ever before. Artificial intelligence (AI) is a major driver of this change, but shifting consumer preferences—like shorter attention spans—plus both micro and macroeconomic factors are fundamentally reshaping how companies operate across all industries.
While every C-suite leader faces challenges from these changes, CFOs are feeling the pressure more than most.
According to a recent report from Sage, 89% of CFOs at small and mid-sized businesses say their role has changed in the past year to keep up with new business realities.
What does this shift actually look like?
“We’re all dealing with economic headwinds that are challenging for our business and for the small businesses we support,” said Jacqui Cartin, EVP at Sage Group, in an interview with CFO.com. “As finance leaders, we need to constantly look ahead and ask, ‘What could put us at risk? How do we future-proof our company? Where could the next big disruption come from?’”
While CFOs have traditionally been seen as focused on bookkeeping and budgets, Sage’s research shows the most important qualities for today’s finance leaders are Problem-solving skills, Leadership skills, and Understanding tech/systems.
As the CFO’s responsibilities increasingly overlap with other departments, 60% of survey respondents said their work now intersects with IT. CFOs are also playing a strategic role in ESG and sustainability (58%), sales (53%), operations (54%), and marketing (52%).
Of course, the CFO role has always been cross-functional by nature, since these leaders set budgets for the entire organization. But the growing need for CFOs to act as strategic decision-makers is being driven by the adoption of AI and machine learning tools—and the opportunities these technologies bring.
Among the CFOs surveyed, 86% see AI, machine learning, and automation as the biggest opportunities to excel in their roles and drive business-wide improvements. In fact, 78% of finance leaders say staying up to date with new technology will be critical to their success over the next three years.
How is technology changing the CFO’s job today?
Nearly three-quarters of CFOs surveyed say more than half of their finance processes are already automated. Looking ahead, 59% expect to lead the rollout of new technology across their organizations in the next three years.
Most finance leaders surveyed (85%) also believe they’ll be called on to provide strategic advice and guidance for the entire company as they navigate new technology and digital transformation.
Today, finance leaders are spending more than four hours a day on activities outside the traditional CFO role, including strategic planning and even talent management.
As a result, their workload is growing while the time available for core financial responsibilities is shrinking.
Driving efficiency without sacrificing time
Sixty-nine percent of CFOs surveyed say their biggest challenge is managing an ever-growing list of daily responsibilities.
For growth-stage companies, this is especially challenging, since CFOs are also responsible for fundraising and developing a capital strategy—a full-time job that demands focus.
While many companies have automated some non-finance tasks that fall to CFOs, there are still plenty of opportunities within the finance department itself to use advanced technology to work smarter, faster, and more efficiently.
For example, securing non-dilutive innovation funding requires insights from product, R&D, and finance teams. Gathering, analyzing, and presenting this data can quickly overwhelm a CFO unless they have both automated tools and expertise across these areas to build a strong claim.
R&D tax credits, in particular, are a powerful way for CFOs to stretch their innovation budgets even further.
At Boast, we’ve built a platform that streamlines the process—bringing together finance, product, and payroll data in one intelligent hub. Our in-house tax and technology experts handle the heavy lifting to create a comprehensive, optimized R&D tax credit claim.
Watch our recent webinar with partners from Get Fresh Ventures, Front Fundr, and Side Door Ventures, where we discuss the challenges and opportunities for businesses growing in today’s economy.
Want to see how Boast can help you work smarter and get the most from your R&D investments? Talk to one of our experts today.
