As businesses enter 2025, the landscape of financial management and accounting is poised for significant transformations propelled by advancements in automation and artificial intelligence (AI). Companies are gearing up to confront various challenges, notably a looming talent shortage, evolving workflows, and shifting responsibilities within finance teams. Insights from Floqast's Katie Thomas offer key predictions that highlight the pressing priorities organisations must address.
The impending talent shortage is a critical concern, particularly in accounting where many Baby Boomers are retiring, resulting in an estimated 30% decline in the number of available Certified Public Accountants (CPAs) over the next decade. Despite currently facing a shortage exceeding six figures, organisations are compelled to develop innovative strategies to fill these essential positions. Speaking to SAPinsider, Thomas emphasised, "Creating an environment that attracts and retains talent while thinking outside of the box to find new talent is a critical piece of managing the talent shortage puzzle." This reflects a broader issue many businesses are encountering as they attempt to enhance their capabilities in advanced technologies, including automation and AI, for which there is also a scarcity of skilled personnel.
The landscape of financial operations is set to evolve, with finance teams expected to handle increasing workloads despite these staffing shortages. According to research conducted by SAPinsider, improving the efficiency of critical tasks, such as the financial close, ranks as a top priority. Companies are increasingly looking to integrate automation and AI into their processes. This shift is also coinciding with the demand for a centralized workflow management system, which provides a single source of truth for financial data. The FloQast Accounting Transformation Platform is cited as a potential solution to enhance visibility, enabling leaders to make informed decisions based on accurate data.
In addition, the role of the Chief Financial Officer (CFO) is anticipated to expand significantly, with a greater emphasis on financial transformation compared to previous years. Thomas highlighted that CFOs will need to navigate the complexities introduced by new technological tools and assume a leading role in advocating for technology adoption. “To support compliance and help teams navigate the complexities of digital transformation, CFOs will be championing technology adoption while fostering innovation and leading cultural shifts,” she stated. This evolution implies that compliance responsibilities will be increasingly demanding, with CFOs needing to ensure that their organisations adhere to various regulations to mitigate risks associated with penalties and reputational harm.
The unfolding scenario suggests several implications for SAP organisations. Firstly, the maturation of automation and AI capabilities necessitates that companies prepare for their integration into critical financial functions to manage their workloads effectively. Secondly, an organisational shift in roles and responsibilities within finance and accounting departments will be required, as technological innovations redefine operational possibilities. As businesses brace for the unique challenges and opportunities of 2025, the focus will undoubtedly be on leveraging these advancements to enhance efficiency and maintain compliance within an increasingly complex financial landscape.
Source: Noah Wire Services