Survey reveals CFO-accountant divide on financial transformation

A recent survey from FloQast has shed light on the crucial role accountants play in steering financial transformation initiatives within organisations.

Despite this, the survey reveals that 60% of accountants and CFOs do not view financial transformation as a top priority, underscoring a significant gap in understanding and implementation.

The survey, titled "Embracing Financial Transformation: What It Is, Why Organisations Should Want It, and How to Achieve It," was conducted in collaboration with the University of Georgia Consumer Analytics Program. It gathered insights from 385 finance professionals, including CFOs, controllers, and various accounting personnel, spanning different tenures, company sizes, and certification statuses.

According to Mike Whitmire, CEO and co-founder of FloQast, "CFOs and their teams are under immense pressure to transform financially, but we've found there's often a lack of understanding about what exactly transformation means and how to achieve it." He further emphasised the importance of collaboration: "It's a team effort that requires collaboration, awareness, and cohesiveness from all members of the team. But perhaps the biggest catalyst to this transformation comes from accountants themselves, who have the most intimate understanding of the record-to-report landscape and stand to be immensely valuable to CFO-driven transformation initiatives with the right resources."

The survey introduced two new models aimed at guiding financial transformation: The Financial Transformation Framework and the Financial Transformation Belief Model. These frameworks were developed to help accounting teams better comprehend and implement transformation processes.

Key findings highlighted a significant disparity between accountants' and CFOs' familiarity with financial transformation. While 96% of CFOs had heard of financial transformation and 61% were very familiar with it, CFOs were found to be 2.2 times more likely to be aware of financial transformation than accountants. This gap points to a need for more comprehensive education and communication within financial teams about the importance and execution of such initiatives.

Interestingly, both accountants and CFOs expressed optimism about the role of artificial intelligence (AI) in accounting. The survey found that 37% of accountants and 30% of CFOs believe AI will increase productivity. Additionally, 32% of accountants and 28% of CFOs consider AI a critical component of financial transformation, indicating a trend towards embracing technological advancements as key drivers of change.

FloQast’s CFO, Razzak Jallow, commented on the necessity of cohesive strategies, stating, "Disparate workflows that address narrowly defined needs won't deliver transformation. The CFO's role in this process is to collaborate with accounting teams to facilitate and add structure to all transformative efforts across the department. Transformation truly happens when the CFO empowers accountants to optimise cohesive financial transformation - not singular efforts they think will drive change."

While the survey highlights an awareness of the importance of financial transformation, it also signals a pressing need for a more integrated approach. Two-thirds of the respondents indicated that their organisations have initiatives for financial transformation, but a comprehensive vision or cohesive strategy appears to be lacking.

The findings come at a time when the pressure on financial teams to adapt and modernise is growing. As organisations navigate a complex and dynamic environment, the role of accountants in driving financial transformation becomes increasingly vital. The survey results call for a collaborative effort where both CFOs and accountants are equipped with the knowledge and resources needed to bring about meaningful change.

FloQast remains committed to publishing industry research on critical topics in accounting and finance. Prior efforts, such as the Controllers Guidebook survey series, have focused on challenges such as burnout, technology adaptation, and creating ideal work environments for accountants.

The detailed findings of the survey are available in an eBook format, providing a comprehensive look at the survey results and the proposed frameworks for financial transformation.