As we look back on another year, we see that finance has been just as demanding as the years prior. And as a new year approaches, it’s important to take a moment and reflect on what finance leaders learned in 2024. What has the past year taught you? How can those lessons help you succeed in 2025?
This has been a demanding decade for CFOs. Companies have faced a series of unprecedented challenges in recent years, from the pandemic to surging inflation. But there have also been exciting opportunities, with emerging technologies potentially creating entirely new markets.
In this time, the finance leader’s role has continued to evolve. Over the course of 2024, finance leaders became even more involved in technology and high-level strategic decisions. Today’s CFO isn’t just responsible for balancing the books. Their role is now to steer the ship through choppy waters, while also being ready to move quickly on new opportunities.
looking back on finance in 2024: 5 big takeaways
It’s hard to summarize what finance leaders learned in 2024 in just one article. Each CFO will have a different experience, from those who have had to make tough financial decisions, to those who have overseen ambitious growth projects.
However, looking at the data, we find some common themes emerging. Let’s take a look at the main ones.
1. financial resilience is the top priority
Every company has been forced to react to unforeseen external events, and 2025 may bring even more surprises. The recent U.S. presidential election in particular has introduced a new layer of uncertainty, with the outcome's economic implications still unfolding. One survey found that 61 percent of CFOs expect the US election outcome will impact their strategy, with many anticipating changes to regulations, taxation and the overall economy.
In 2024, we’ve also seen CFOs prioritize cost optimization. This has meant some high-profile layoffs, especially in the tech sector, but finance leaders have also looked at other strategies to reduce costs, such as vendor negotiations, process automation and new talent management strategies.
Recent years have shown that every business must be prepared to navigate shocks, whether that’s a political event or a change in interest rates. In 2024, CFOs looked at new ways to manage costs, optimize cash flow and build a stable base for future success.
Priorities for 2025:
- Make financial resilience a key part of strategic planning
- Use data to communicate best-case and worst-case financial scenarios
- Build a solid financial base to support ambitious growth actions, such as mergers and acquisitions
2. CFOs should lead AI investment strategy
Artificial intelligence was the biggest talking point of 2024. AI tools are now part of Windows, Google and many popular enterprise applications. And yet, many companies are struggling to find the value in this new tech, with 49 percent of CIOs saying they are struggling to demonstrate a return on investment.
In the past, finance leaders have played an important role in digital transformation strategy, and this is also the case with AI. CFOs have a perspective to construct a meaningful business case for AI tools, as they can see the costs (including training and hiring) as well as the possible benefits.
Finance leaders also have a strong grasp of two major issues arising from AI adoption: compliance and cybersecurity. New technology means new risks, so it’s important to be rigorous when developing an AI strategy or any other plans for digital transformation. CFOs are the ideal leaders to guide this kind of rigorous process.
Priorities for 2025:
- Look for areas where AI and automation can deliver meaningful value
- Identify all associated costs, such as the cost of hiring AI specialists
- Work with tech leaders and compliance experts to develop a robust AI policy framework
3. human capital strategy requires a new approach
People are the most valuable asset of any business. However, recent years have put a significant strain on the employer/employee relationship. We’ve seen the switch to remote work, followed by a return to the office. There was a Great Resignation, followed by a string of high-profile lay-offs. Meanwhile, there has been an important conversation about the employer’s role in employee wellbeing.
All of these changes have serious cost implications, which is a concern for CFOs. For instance, remote work seems to have a lower cost, but what is the impact on productivity? What is the right mix of contractors and full-time employees at each time? How much should you invest in professional development, health benefits and wellness programs?
These issues also directly impact the finance team. Around 90 percent of CFOs outsource core accounting functions, and this is partly due to talent shortages, especially at a junior level. The talent market remained volatile in 2024, which means leaders might need to rethink their entire approach to recruitment and retention.
Priorities for 2025:
- Work with HR leaders to identify employee priorities, such as a demand for remote work or professional development opportunities
- Explore alternative hiring arrangements, such as working with contractors
- Invest in developing a strong employer brand to enable recruitment through social media
4. finance leaders are vital strategic partners
CFOs have been focused on playing a bigger role in decision-making in recent years. Last year, 43 percent of CFOs said one of their top three goals was establishing finance as a partner to the business. This figure is set to grow as finance leaders play a bigger role in crucial decisions, such as IT investment.
Data is one of the main ways finance leaders can support other leaders. The finance team has access to vital information, from cash flow analysis to resource allocation. CFOs will need to look at new ways to present data insights to the business, as well as making data available to AI processes.
ESG is another responsibility that often falls to finance leaders. More than 80 percent of CFOs say they are under pressure to deliver on sustainability objectives, and many expect that pressure to grow over the next five years. Finance leaders will need to develop and fund ESG projects, as well as provide rich data about their progress.
Priorities for 2025:
- Look at how new technology might improve your capacity for data-driven decision making
- Take leadership in crucial areas, such as ESG
- Form bonds with other leaders, especially those involved in digital infrastructure, such as the CIO/CTO
5. managing risk is key to success
CFOs oversee some of the biggest potential risks to the business. Finance leaders need to be constantly vigilant about fraud, cash flow issues, problems with vendors and anything else that might jeopardize the company’s stability.
Cybercrime is increasingly one of the major risk factors. In 2024, the average breach cost approximately $4.9 million, a 10 percent increase on the previous year. This doesn’t include intangible costs, such as reputational damage or lost intellectual property. This is another reason why CFOs should work closely with tech leaders — because cybercrime is an enormous financial threat.
Compliance is also a major risk factor, especially as we see new privacy laws on a local, federal and international level. AI offers a chance to automate more of your internal controls, but this also increases the risk of error and breaches. Any changes to your compliance processes must be handled carefully and as part of an ongoing change management process.
Priorities for 2025:
- Monitor changes in relevant regulations and update processes accordingly
- Take great caution if automating any internal controls
- Work with tech leaders to ensure your data is safe from hackers
what will finance leaders face in 2025?
Predicting the future is impossible. Besides the major externalities, such as the election and other global political events, it’s difficult to guess at economic trends such as consumer confidence and inflation. Will 2025 be a time of growth? Or will most companies need to scale back their ambitions?
Finance leaders need to be prepared for both possibilities. Financial resilience and risk management will help your organization survive any shocks. A new approach to human capital strategy and digital transformation will allow your company to move quickly if opportunities arise.
All of this reflects the CFO’s increasingly important role as a strategic partner. Throughout 2024, we’ve seen finance leaders become even more involved in high-level decision making, supporting their colleagues with quality data insights and prudent judgements. And in 2025, finance leaders are going to be more important than ever.
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