All around the world, the business environment is undergoing significant change that will not let up anytime soon, given ongoing global economic uncertainty and technological advances. To stay relevant now and into the future, and to maintain a key strategic position within companies, CFOs and finance functions must evolve. A new toolkit launched by the International Federation of Accountants (IFAC) provides finance professionals the resources to figure out how. The series includes:
- A vision for the CFO and finance function;
- Future-fit accounting roles for the next decade; and
- An evaluation tool.
The publications are designed to help CFOs and the finance function achieve long-term value creation through information and analysis that support top-notch business decision-making. In addition, as a strategic business partner, CFOs and finance must communicate how value is created currently and in the future, and whether success is sustainable.
IFAC’s evaluation tool could help guide organisations in the necessary finance function transformation. Specifically, its purpose is to help boards and management teams identify strengths and areas of improvement for their finance team. The evaluation tool also helps identify priority areas for further development that will maximise the value and contribution of the finance function.
IFAC recommends the evaluation tool be used with its two other reports in the Future-Fit series. Those publications provide a vision for the CFO and finance function and roles for accountants in business for the next decade.
- A Vision for the CFO & Finance Function provides a path to develop an effective finance function in the context of evolving mandates driven by digital transformation and multicapital thinking. The vision represents a shift from accounting for the balance sheet to accounting for the business and value creation, as well as a shift in the professional skills and competencies, mindsets, and behaviours required to influence decisions.
- Future-Fit Accountants: Roles for the Next Decade focuses on the roles of finance and accounting professionals. The nature of work performed by professional accountants and the nature of their contribution to organisations are rapidly evolving in response to significant business trends.
For a complete summary, visit the IFAC Future-Fit Series webpage.
For organisations, developing a finance function vision will help identify the enablers of change and ensure that the finance function is fit-for-purpose to partner with the business.
Source: IFAC.