Research reveals top complexity drivers for UK CFOs and their ever-growing to-do list

• Over a third (39%) of CFOs note a larger demand to collaborate with the c-suite than two years ago
• Adopting new technologies is the top priority for almost a third (30%) of CFOs in 2021 and beyond
• In addition to CFO priorities, research reveals nearly a third (28%) of CEOs cite international growth as top priority for the CFO in the year ahead

97% of UK CFOs believe their role has become more complex during the last two years, a survey from global payables automation company Tipalti Europe has revealed. The poll, which quizzed over 300 UK CFOs and CEOs about the position of the finance leader, highlights the increasing pressures and responsibilities placed on the finance leader today, and the greater collaboration needed with the c-suite.

As UK businesses continue to face uncertainty caused by the pandemic and the constantly changing environment brought about by Brexit, Tipalti research shows the increasing amount of responsibilities placed on the modern CFO and finance director to support businesses. In general, a fifth (20%) of UK CFOs say they’ve seen a greater demand placed on them by the CEO and board, a key factor that has made their job more complex. In addition to this, over a third (39%) believe collaboration with the CEO and other members of the c-suite has become more necessary than before to the office of the CFO.

As the CFO’s job scope continues to grow, Tipalti’s research highlights the areas making their job more complex and key focuses for both CFOs and CEOs in the year ahead – those being environmental sustainability initiatives, international growth and technology adoption. However, with nearly a third (29%) of CFOs stating they are having to deal with more manual finance operations, and have a more strategic role across the business (23%), it’s having the time to wear multiple hats that proves challenging.

Sustainability is a key focus

Highlighting the ever growing to-do list of a CFO, over a quarter (27%) of CFOs describe incorporating ESG (environmental, social, and governance)/sustainability into their role, as a main driver of complexity. The origin of this priority is clear as CEOs (29%) cite the ability to develop ESG capabilities as the most important quality needed in a CFO today, compared to five years ago – undoubtedly as strong ESG ratings become ever more critical for investors, and therefore adding the responsibilities of the CFO. This insight follows the UK government’s call in March for businesses to take urgent action on their carbon emissions by signing-up to Race to Zero and setting out clear pathways to get to net zero. With environmental concerns growing globally, and the UK government looking to businesses to help, already time-poor CFOs require time to think strategically, away from the day-to-day admin.

International growth remains pivotal

With trading deals between the UK and EU still uncertain thanks to the pandemic, many businesses have set their sights on opportunities outside of Europe. A recent paper from the Department for International Trade stated that almost 90% of world growth is expected to be outside the EU over the next five years and that growth in digital trade, services trade, and green trade are all expected to accelerate this decade. It also identified that the export market opportunity for the UK’s green sector alone is estimated to be worth up to £170 billion a year by 2030.

This rings true with Tipalti’s research, which highlights over a quarter (28%) of UK CEOs believe helping the business grow internationally is a top priority for the CFO in 2021 and beyond, 23% of CFOs believed the same. However, a fifth (22%) of CFOs admit international expansion is something which has made their role more complex. An alarming finding of the survey is that nearly a fifth (16%) of CFOs say keeping finance operations up with company growth has too been a challenge. What is comforting is that CEOs are on board with a fix – with a third (29%) stating that adopting solutions to enhance efficiency is their biggest priority to help achieve growth.

Modernising the finance department

For over a quarter (27%) of CFOs, the global pandemic was cited as a reason for their role becoming more complex in the last two years. Over the past 18 months we’ve seen incredible transformation across all departments, including finance, as businesses look to survive and thrive in the pandemic with dispersed workforces and changing business needs. The desire to digitally transform is echoed in the research. For a third (30%) of CFOs, adopting new technologies is a primary focus the remainder of the year and beyond. This desire is matched with UK CEOs believing that the ability to prioritise innovation (25%), and the ability to improve financial and business reporting accuracy and timeliness (28%) are important qualities for a successful CFO today.

Rob Israch, General Manager of Tipalti Europe comments on the findings of the research: “Our research shows the increasing amount of responsibilities placed on the modern CFO and the essential role they have in driving strategic initiatives beyond simply running the financial operation. However, as a result of a mounting to-do list, CFOs and finance leaders are incredibly time constrained.

“In order to see success with initiatives like sustainability, international growth and digital transformation, which we know are key priorities for businesses in the UK, it is essential for finance departments to adopt technology that removes manual labour, so CFOs can focus on what matters. Only then will CFOs be able to focus on strategic initiatives that see business success.”