According to a new report by ACCA and Chartered Accountants ANZ, in collaboration with PwC, finance teams have just five years to transform or face the risk of becoming obsolete.

The report, Finance Evolution: Thriving in the Next Decade, underscores the critical role finance teams play in building sustainable businesses and calls on CFOs and finance leaders to act swiftly.

Immediate action is essential to ensure their teams remain vital contributors to their organisations' future success.

Drawing on insights from over 150 finance professionals and 2,300 survey responses, the report shows businesses now require a more comprehensive skill set from their finance teams. Traditional methods of retrospective reporting and conventional approaches to planning and forecasting are no longer sufficient to meet the needs of key decision-makers.

Instead, a proactive and forward-thinking approach is essential to stay ahead.

The report highlights some ongoing concerns raised by survey respondents:

• A lack of clarity on how finance can add value to the business (38 per cent)

• Finance being seen mainly as a cost centre (32 per cent)

• Current technology not meeting the needs of the organisation (30 per cent)

Finance teams must leverage technologies such as artificial intelligence, machine learning and data analytics to enhance decision-making and operational efficiency.

These technologies enable finance teams to minimise manual tasks, enhance productivity and position themselves as key drivers of growth, rather than just number crunchers.

Helen Brand, OBE, chief executive of ACCA, said, "For finance teams to stay relevant, they need to look ahead. CFOs and finance leaders must ensure they are measuring both the long-term and short-term goals of sustainable business models effectively. The role of the CFO is fast evolving beyond finance to encompass wider value creation and management."

Additionally, the role of finance has evolved to include leadership in long-term value creation, including addressing sustainability challenges and driving strategic initiatives.

However, the report also emphasises that as finance teams undergo this transformation, maintaining a strong ethical foundation remains paramount.

With the increasing reliance on technology and data, it is essential to uphold rigorous ethical standards to build and sustain trust, ensuring that technological advancements are leveraged responsibly and transparently.

Ainslie van Onselen, CEO of Chartered Accountants ANZ, said, "While the arrival of new technology presents exciting opportunities to radically transform and improve the way we work, the one thing that must never change is our profession’s strong ethical standing. While we upskill and future-proof our technology capabilities, we must also remain firmly focused on the ethical role that financial professionals – especially chartered accountants – must play."

Moreover, the report highlights significant skill deficits in the areas of digital, data and sustainability. Addressing these