To ensure a smooth 2025 and prepare for future financial shifts, CFOs need a clear view of recent performance, an eye on key trends in people, processes, and technology, and the right tools to stay ahead.
Staying on top of these developments will not only safeguard financial stability but also enhance the organization’s agility and resilience in an ever-changing market.
6 Finance Trends
The world of finance is changing quickly, and teams need to keep up. Here are the six important trends that are helping shape the future of finance.
1. Finance Teams Will Focus on Workforce Planning
Finance teams have a lot of pressure, especially with the changes in remote and hybrid work. As employees want more benefits and workplaces become more complicated, finance teams need to understand the costs and opportunities related to their workers.
According to a survey of over 300 finance leaders, more than 70% don’t require workers to return to the office full-time. Even though some companies are cutting back on office space to save money, most people still prefer to work from home or in a hybrid model.
Interestingly, 54% of those struggling with workforce planning don’t use financial management technology every day. However, tools that help finance and accounting teams work together can make processes smoother and remove obstacles.
About 63% of those using financial technology are happy with their workforce planning, showing that adding these features to current systems can be very helpful.
2. CFOs as Strategic Advisors
CFOs (Chief Financial Officers) now do much more than just manage money. They are important advisors, helping make decisions about finance, technology, and long-term plans for the entire organization. Their roles involve working closely with other teams and business leaders.
Even though finance leaders have a more important role, about 29% are only asked for their opinion by their coworkers once a month or even less.
This shows there is a chance to improve teamwork. CFOs should especially offer advice on technology, which is usually handled by the Chief Information Officer (CIO). However, CFOs often spend less time with CIOs and other leaders, possibly because these roles report to them.
3. Improving Financial Operations
Companies are always looking for ways to work better and ahead of the competition. The finance and accounting departments can benefit a lot from improving their processes. By making changes to finance and accounting operations, companies can work more efficiently, be more accurate, and make better business decisions.
There are different ways to improve finance processes. For example, using automation tools like Robotic Process Automation (RPA) can help reduce manual errors.
Identifying and cutting out unnecessary tasks can speed things up while automating routine work leads to quicker decisions. Streamlining processes can also lower costs, allowing companies to use their resources more effectively.
4. Finance Expects AI Integration
Many people, including boards, customers, investors, and employees, want organizations to use artificial intelligence (AI), especially generative AI. Most finance leaders agree with this trend, and 92% of their peers are already using or planning to use AI for financial planning.
- AI can help with several tasks in finance, like automating financial reports and making smart predictions. Here are some ways generative AI can be beneficial:
- You can ask questions in simple language to get quick answers, like finding out about pay differences in different areas, instead of making lots of spreadsheets.
- It can help create custom dashboards or reports based on specific questions, which can be reused easily across the business.
- It can also speed up tasks like managing user access and letting the finance team handle technical jobs without needing outside help.
5. Software Beats Spreadsheets for Finance Leaders
Managing financial performance is a team effort. Today, finance teams are using modern tools called FP&A (Financial Planning & Analysis) platforms. These tools help improve teamwork, automate tasks, and make processes easier for finance and accounting teams, as well as the whole organization.
More finance leaders are putting money into FP&A technologies. These solutions can organize financial data, automatically combine information, and help identify trends in budgeting and forecasting.
6. The Importance of Communication
Good communication is key for finance teams to succeed. As they work closely with other departments, sharing information helps everyone stay on the same page. When finance teams regularly update other teams about budgets, costs, and financial goals, it helps everyone make better decisions.
Using collaboration tools can make it easier to share information quickly and efficiently. By encouraging open discussions and feedback, finance leaders can build stronger relationships with their coworkers and improve overall teamwork. This way, the whole organization can work together to reach its goals.
Planning for the Future of Finance
Staying updated is super important. CFOs and finance teams need to focus on new trends like workforce planning, using AI, and modern tools that help them work better together. By using technology and improving communication, they can create strong plans for success.
Don’t let your company fall behind! Now is the time to change old ways and try new ideas that help everyone do their jobs better. The future of finance looks bright, but only for those who are ready to adapt and take action. Take a moment to look at how you currently work and think about what tools can help your team. Then, lead the way!
FAQs
What are some current financial management trends?
Some of the latest financial management trends include a focus on automation, the integration of artificial intelligence, and improved collaboration among finance teams to enhance decision-making.
What personal finance trends should I be aware of?
Some important personal finance trends include the rise of digital budgeting tools, an increased emphasis on financial literacy, and a growing interest in sustainable investing.
Which of the following are new advancements and changes in finance?
New advancements and changes in finance include the use of blockchain technology, the adoption of cloud-based financial software, and the growing role of fintech companies in providing innovative financial solutions.
What are some common issues in finance?
Common issues in finance include managing cash flow, dealing with market volatility, and addressing compliance and regulatory challenges.