Better Tech Will Help With Financial Strategy Say CFOs

Out of the 260 UK and Ireland-based CFOs surveyed as part of the Mindset Report, 38% believe that better financial technology would most help in boosting their control over their business’ financial future.

The sentiment suggests some businesses fail to focus on making timely technological improvements, which are necessary.

The response is particularly pertinent, as when asked about the most damaging contributing factors to their business’ financial stability, 34% of respondents cited technology and software limitations, with more respondents in Ireland viewing it as a problem.

“The need for modern solutions is clear. CFOs are facing immense pressure to make strategic decisions in the dark, without the right data or technology to support them. It’s a problem across the board but is particularly prevalent in Ireland," said Darren Cran, CEO of AccountsIQ.

Economic downturn plaguing UK CFOs most

Issues challenging CFOs in Ireland include a lack of skilled talent, and failing to keep up with targets, which were each flagged by 34% of respondents. Similarly disruptive was time spent on manual data input and reporting accuracy, which were each cited by 30% of respondents. 

Some 38% of CFOs in Ireland also cited market competition and economic downturn as issues they face.

However, the latter was revealed to be more of a problem for CFOs in the UK as 48% of them flagged it as a problem.

Fewer CFOs in the UK than in Ireland also think businesses are responding to company growth demands adequately by making adjustments in the finance function.

While 70% of CFOs in Ireland and 58% in the UK say their finance function is scaling up to meet business growth demands, 16% describe it as actively slowing down.

Lack of insight cause CFOs to struggle

A considerable 90% of respondents said they believe decisions concerning their company’s financial strategy are being made without the necessary data.

Furthermore, 40% of respondents report feeling compelled to work extra hours, suggesting a lack of time to regain control over their responsibilities.

A substantial 76% of the CFOs said they do not feel they have complete control over their company’s financial health, while 40% said that they try to address the issue by working longer hours and 36% say they experience higher levels of stress and anxiety.

A considerable 85% said they would need to work an extra one to two days a week to complete their tasks and clear their backlog.

Only 9% of the respondents said that they never feel out of control, and 18% said any pressures they face within their role does not cause them to “experience any significant negative effects”.

Solutions for greater control

AccountsIQ’s survey highlights the increasingly stressful working environments CFOs work in, where they often are required to complete tasks to demanding deadlines.

The survey also asked CFOs in the UK and Ireland to suggest solutions to the problems they face while carrying out their jobs.

Some 35% respondents said access to more capital would help them achieve their financial goals in their role.

A smaller 25% of all respondents suggested better communication with their C-suite colleagues, and increased transparency around finances, through access to data and reporting, would aid them in getting a better hold of their business’ financial future.