CFOs are working with business leaders throughout the organisation to help establish the relevance, accuracy and security of the data used in their planning and analysis activities. Since much of this data is nonfinancial and unstructured, it is crucial for finance leaders to ensure that the data and related analyses are subjected to sophisticated controls, accuracy assurance, and data governance that adheres to internal policies, and measured against regulatory requirements and changing stakeholder expectations (e.g., evolving sentiments regarding data privacy).

As new analytics from the rest of the business emerge and mature, finance groups can strengthen their revenue, profitability and cash flow forecasts by integrating new “beyond finance” data points and KPIs into their analyses.

For example, leading CFOs are working with chief operating officers to develop a total-cost-of-ownership perspective on sourcing investments that shape new supplier selection and management strategies. Finance leaders are also helping their supply chain colleagues develop metrics that provide more predictive snapshots of suppliers’ reliability and quality, risk management capabilities, and capacity for innovation. CHROs need help from CFOs to generate real-time insights about the skills that reside throughout the organisation; these analytics strengthen talent forecasting and scenario-planning activities.

ESG teams rely on the finance group’s guidance on accessing and analysing relevant, high-quality, audit-ready data in accordance with organisational data governance standards as well as increasing stakeholder demands and new disclosure rules. In addition to taking charge of ESG data management and reporting, CFOs help ESG leaders with developing sustainability metrics that monitor ESG performance and identify operational-improvement opportunities (e.g., reducing distribution and delivery costs).

As FP&A becomes more widespread throughout the enterprise, CFOs are keeping the following in mind:

• Shareholders want more expansive and sophisticated FP&A outputs. In our survey, CFOs in publicly held companies rate FP&A as a notably higher priority (69%) compared to finance leaders in private companies and the public sector.
• Better business analyses translate to more powerful finance analytics. The data collected and analysed by functional and operational teams can be used to run more precise and forward-looking financial forecasts and analyses.
• Technology enablement is crucial – especially on the AI front. A fully optimised FP&A capability leverages integrated and flexible self-service tools that facilitate real-time collaboration and digital on-demand planning. More CFOs are deploying AI to support a range of planning and forecasting activities throughout the order-to-cash cycle to deliver major cash flow management improvements.

Among those finance organisations that use generative AI, 58% report that they have achieved meaningful and measurable progress in their cost optimisation efforts . Some of the most impressive AI use cases give finance groups deeper understandings of customer behaviors. By leveraging AI to analyse payment behaviors (when and how customers pay, and even the spirit in which they pay), finance and accounting teams can adjust customer-onboarding processes, collection activities and other accounts receivable activities to increase cash flow.