Financial controllers readying for role change, report reveals
Financial controllers worldwide are bracing for “radical technological change” in their role over the next five years, an EY report has suggested.
The EY Financial Controller Report 2024 has demonstrated financial controllers around the world are readying themselves for change in the technological aspect of their role over the next five years.
According to the report, this “radical change” will open big opportunities for those who can embrace data and technology.
However, though ready for the change many financial controllers are uncertain about what would be involved in this.
In addition, many financial controllers said they do not have the support they would need to manage it.
The Financial Controller Report is derived from a survey consisting of the answers of more than 1,000 financial controllers across 28 countries and territories.
The results revealed that 86 per cent of financial controllers expect their roles to change dramatically by 2030, with 39 per cent anticipating a heightened focus on value creation supporting SME growth and a departure from the traditional strongholds of value protection and optimisation.
EY global and EY Americas strategy and markets leader Myles Corson said change is on the horizon within this space.
“The role of the financial controller is on the cusp of significant change and while it is not clear exactly how this will play out, it is evident that financial controllers must now deliver at a high level on multiple challenges at once,” Corson said.
“They need to strike a balance between delivering short-term performance and enabling long-term value and their responsibilities now stretch far beyond the balance sheet.”
The results highlighted many financial controllers had positioned themselves well for “imminent changes” to their roles and were ahead of most finance leaders in adopting AI, with 67 per cent using it for daily tasks.
Eighty-eight per cent used data to provide strategic insights.
The report said despite clear recognition that change is coming, more support is needed to fully leverage the power of emerging technology.
Only 21 per cent ranked ‘searching for opportunities to use technology’ as one of the top three ways of creating value, while 73 per cent said ‘driving company growth.’
These results suggest that many are overlooking the capacity of technology to fuel growth, Corson said.
Though many financial controllers see value creation as the future focus of their role, a large proportion remain focused on value optimisation with cost-saving strategies.
However, the survey identified a set of financial controllers known as “confident controllers” driving value creation through technology.
Corson said the first step in any successful transformation is building recognition of the need for change.
“While it is clear this exists within most finance functions, financial controllers need to actively lead in developing the technological skills and knowledge needed to unlock their value-creating potential and enhance the brand of controllership with their leaders,” he said.
Results also indicated a potential talent shortage at the top of the profession in the coming years, as only 32 per cent surveyed said they want to become chief financial officer.
The divergence between “confident controllers” and their peers concerning innovation in tech and data is stark, Corson said.
“These leaders provide the ideal model for less seasoned controllers to work toward in terms of skills and focus and with the right support and approach, they can show how the role of the financial controller can be a force for true value creation and innovation.”
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