Irish finance functions need to be more strategic – research

Irish finance functions are lagging their global peers on strategy, according to new research, which finds that the finance function of the future needs to be a strategic business partner.

According to a new ACCA/PwC report, Finance Insights - Reimagined, which is based on interviews with over 3,500 finance professionals around the world, including 100 in Ireland, the finance function of the future needs to be "a strategic business partner, primarily forward looking and delivering vital business insight."

However, just 32 per cent of Irish finance leaders said that their function is “truly strategic”, compared with 37 per cent across the global survey, while less than 10 per cent said that their finance functions are “future focused”. Moreover, less than half (43 per cent) said that the role of the finance function is “predominantly proactive”, compared with 55 per cent globally.

Amy Ball, PwC Consulting partner, said that a failure to treat finance as a strategic function can threaten to marginalise it, allowing other parties to exploit the demand for this new approach.

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“And with the uncertainties presented by Covid-19, being able to scenario plan and make quick decisions based on forward looking accurate data is critical,” she said.

The survey also found that few – 14 per cent – Irish finance leaders see problem solving as a valuable skill, suggesting a reticence in evolving the finance function towards a strategic business partner. In addition, just three out of ten Irish respondents also believe that self-service reporting, AI and machine learning has already or will shortly free up business partner time from previous responsibilities .