Australian CFOs face rising demands amid evolving roles

The Finance 2035: Return to Investment study by OneStream Software highlights the evolving role of Chief Financial Officers (CFOs) and their increasing importance to investors in Australia.

According to the report, which surveyed 2,000 business leaders, including 1,000 CFOs and 500 investors, 88% of investors globally anticipate that the role of the CFO will be more significant by 2035 than it is today. The study reports a 2.6% average increase in investments where the CFO is identified as the main strategic growth driver, with a higher increase of 3.6% for the world's largest asset managers.

In the Australian context, investor focus is considerably on CFO competence when making investment decisions. The study indicates that 80% of investors demand CFOs to demonstrate technical, operational, and strategic skills to gain their confidence. "Today's research reveals how the strategic importance of the CFO is growing. Yet, Australian CFOs are facing increased pressure to deliver on investor expectations during a time of economic uncertainty and shifting market dynamics. They must be masters of everything, being strategic and technical, and are struggling to drive growth due to an overwhelming volume of data and information," stated Thomas Palmer, Managing Director - APAC at OneStream Software.

The report reveals that 83% of Australian investors and 68% of business leaders believe that the CFO's influence is set to surpass its current level of importance by 2035. Despite this, 75% of Australian CFOs find it challenging to drive organisational strategy and growth given their expanding roles. A notable 79% are overwhelmed with data and information, the highest response among all surveyed regions.

Furthermore, CFOs in Australia are being urged to broaden their understanding beyond technical finance abilities, with 77% of CEOs acknowledging heightened expectations and 69% stressing the value of a holistic business perspective. Among the barriers hindering CFOs from becoming more strategic, the report notes a skills gap, legacy technology systems, and siloed organisational structures as significant challenges.

Data holds the potential to address these challenges, as per three-quarters of Australian CFOs and business leaders. They collectively view unified data and decisions based on such data as pivotal for organisational success. Additionally, 64% of Australian business leaders agree that companies failing to invest in technology, infrastructure, and skills may not endure for long.

Thomas Palmer remarked, "CFOs are pivotal players in this high-stakes future. The blueprint for survival lies in strategic investments—in technology, infrastructure and skills—which are non-negotiable as we move forward."

Artificial Intelligence and automation are anticipated to reshape the finance function significantly by 2035. 75% of Australian business leaders believe these tools will redefine the CFO's role, transforming it from financial stewardship to strategic visionary leadership in navigating complex regulatory and data-driven environments.

The Finance 2035: Return to Investment initiative by OneStream Software outlines an evolving framework that sets out how finance leaders must prioritise their roles in the coming decade to enable technological advancement and sustainable organisational growth.