insightsoftware (lowercase intentional), a provider of solutions for CFOs, has released its 2024 Finance Team Trends Report. The report analyzes data integration challenges, the rise of artificial intelligence (AI), essential shifts in cloud computing, and the ongoing impact of staffing and skills challenges across the finance and accounting sectors.
The research consists of survey responses from more than 500 finance professionals in Europe and North America. The survey findings indicate that investing in intuitive tools is not merely a cost-saving measure but a strategic imperative. By bridging the skills gap through technology, organizations can unlock the full potential of their finance teams, improve decision-making, and drive business growth.
The report found that 93% of finance teams use multiple software tools, and 94% use software from different software vendors, causing 98% of finance teams to experience data integration challenges. Poor data management and integration from multiple sources, such as enterprise resource planning (ERP) platforms, is considered the biggest challenge to financial reporting, forecasting, and compliance by 82% of finance teams. Integration issues lead to inefficiencies and inaccuracies, ultimately hurting performance.
The growing complexity of reporting and compliance creates significant challenges for finance teams. Most organizations (98%) face one or more major challenges when integrating Environmental Social and Governance (ESG) with their financial reporting. Two-thirds of finance teams (66%) spend three or more days each month consolidating and collecting data for ESG reporting. To solve this, almost three-quarters (71%) of finance teams agree that an automated ESG reporting solution could significantly improve their finance teams’ efficiency and effectiveness.
Skills shortages have rapidly escalated within finance teams, from 41% of organizations reporting challenges in the 2023 Finance Teams Trend Report to a staggering 92% this year. Rapid technological advancements, such as artificial intelligence, machine learning, and cloud computing, have transformed the function of finance, demanding new and unfamiliar skill sets. The finance industry has experienced substantial growth, creating a higher demand for skilled professional. Yet, there are a declining number of finance and accounting graduates. This, alongside evolving work patterns (like remote work and the gig economy), has made it increasingly difficult to find and retain qualified talent.
“As finance teams manage data from multiple business tools and data sources, it’s essential they regain control through technology that integrates seamlessly with the systems they rely on daily,” said Josh Schauer, Senior Vice President, Finance at insightsoftware. “Operating in a fragmented software environment is no longer sustainable. Finance teams need to adopt an integrated platform that offers a unified view of their data. insightsoftware’s open business data fabric forms the backbone of our Platform, enabling extensive customization and seamless technology integration. This empowers teams to derive tailored insights while driving greater efficiency and productivity.”
Additional key findings include:
- At least three-quarters (75%) of finance teams dedicate a minimum of five to six hours each week to recreating financial reports, equating to up to 24 hours a month or 300 hours per year.
- While security (42%) and cost management (37%) are commonly perceived as the primary barriers to cloud migration, this research reveals that skills gaps within the IT team (45%) and integration challenges (42%) are the biggest challenges in practice.
- Over half of organizations allocate at least 30 hours monthly to top-level reporting tasks, with the most time consuming dedicated to: tax return preparation (60%), financial statement creation (59%), and ERP system maintenance (57%).
Download the complete findings of the 2024 Finance Team Trends Report here to learn how finance teams can begin to address their data challenges and improve efficiency through a new stage of digital transformation.
To learn more about how insightsoftware empowers the Office of the CFO to make timely and informed decisions, visit insightsoftware.com.
Research Methodology
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Tags: ESG, Financial Reporting, Technology
