Incorporating NQ magazine
July 2024
FE JUN ACC ED E A BA EX CK AM INS www.pqmagazine.com/www.pqjobs.co.uk ww.pqjobs.co.uk IDE
FUTURE OF FINANCE 2.0 There is a deep divide among accounting and finance professionals about the future of their profession, according to new research from AICPA & CIMA. This divide is split between those who work as business partners and those who don’t. Some 60% of accounting and finance professionals surveyed say they identify as finance business partners, and 84% of these are extremely optimistic about the future of the profession. Of the 40% who say they don’t identify as finance business partners, only 15% say they are optimistic about the future of accountancy. There is also a split in attitudes to automation, with 92% of accounting and finance professionals in nonbusiness partnering roles fearing being automated out of existence, compared with 67% of those in business partnering roles (which still seems quite high). The AICPAs & CIMA newly released ‘Re-defining finance for a sustainable world’ white paper highlights that accounting and finance is unequivocally changing, moving away from traditional rulesbased approaches and towards a more inclusive, expansive, valuecreation mindset better suited for the challenges of today and tomorrow. Other key findings from the report include:
• Three out of five (61%) accounting and finance professionals say that ESG is becoming increasingly important to their organisation’s business model. • Since 2018, perceptions of the value finance professionals add to business have risen; including cost efficiency (up 19%), analysis and insights (up 11%), reporting accuracy (up 9%), controllership and risk (up 7%), capital optimisation (up 7%), and partnering and decision support (up 6%). Through its global Future of Finance programme, which first began before the pandemic, AICPA & CIMA also identified four key
shifts redefining the future of the accounting and finance profession: • A clear evolution of the scope of finance roles within finance teams to embrace ESG and sustainability. • An acceleration in the adoption of technology to drive a shift from transactional processing by finance teams through automation. • A growing focus on value-adding creation to transform business models for long-term success. • A greater need for business partnering skills and the ability to use data and analytics combined with business acumen to improve strategic decision-making and drive business performance.
GENDER DISPARITY LAID BARE The accountancy profession needs to ensure they are not inadvertently preventing women from gaining access to their qualifications, say two of the UK’s leading experts. Their call comes as they discover shocking data, which reveals that the profession is systemically holding women back. Lucy Cohen, CEO of Mazuma Accountants (pictured), and Steve Cox, business intelligence director at IRIS Software Group, have spent the last year analysing gender data from multiple sources, and the results make for sombre reading.
Taking a deep dive into the financial metrics of female-led firms, Cohen and Cox found that a female-led firm is more than 95% less likely to achieve a turnover of over £1 million
compared with ones led by men. In the UK, it is estimated that only 0.6% of accounting firms in the UK who have at least one female director have achieved over £1 million in turnover and, even more astonishing, just 43 entirely female-founded or femalemanaged firms have reached this milestone across the UK. This stark discrepancy not only highlights the economic barriers women face in professional services, but also raises serious concerns about the equality of opportunity within the industry. The findings suggest
Lead author of the report, and AICPA & CIMA’s associate technical director, Rebecca McCaffry (pictured), said: “The impact of technology developments and sustainability considerations upon business mean that our profession is evolving in new directions at pace. As trusted advisors, accounting and finance professionals at all levels will need to adapt to these changes, adopt multi-capital perspectives of value, and be prepared to partner beyond organisational boundaries. These are defining times for the profession, and our research will prove an invaluable resource for illuminating the way forward.” She added: “The broadening of the accounting and finance’s team scope of responsibilities is increasingly driven by ESG, both through new regulations being implemented in this space and growing demand for sustainable business models. “While 61% of accounting and finance professionals believe that ESG is becoming more important to business models, the alignment between intent and practice remains elusive. AICPA & CIMA’s ‘Re-defining finance for a sustainable world’ white paper found that only 48% of accounting and finance professionals are currently measuring the impact of sustainable initiatives.”
that systemic issues, including restricted access to training, critical business networks and funding opportunities, as well as unconscious bias and gender-based discrimination, are contributing factors that impede the growth of accountancy businesses led by women. Cohen said: “I’ve spent almost 18 years running a firm in this space, and a lot of time and energy in breaking down barriers. But I can’t do it alone – this is a call to action for all across the profession. “We must address these disparities head-on by implementing targeted strategies that support women-led firms and by promoting an inclusive culture that values diverse leadership.”