A recent survey commissioned by BlackLine has unveiled a concerning reality for Chief Financial Officers (CFOs) worldwide, with nearly 40% expressing a lack of complete trust in the accuracy of their organization's financial data. This revelation poses significant challenges for strategic decision-making, especially when business leaders are grappling with a myriad of external uncertainties.
The survey, encompassing over 1,300 C-suite and senior finance and accounting (F&A) professionals across the US, Canada, UK, France, Germany, Australia, and Singapore, highlighted persistent concerns regarding cash flow visibility. An alarming 98% of respondents admitted to lacking complete confidence in their organization's visibility over cash flow for the second consecutive year, hindering their ability to respond effectively to unexpected market changes.
Global CFOs identified key disruptors, with 78% expressing concerns about the possibility of another global financial crisis. Additionally, worries regarding cybersecurity issues (76%) and the impact of new disruptive technologies (73%) weighed heavily on their minds.
In addressing business disruption, CFOs emphasized the importance of real-time access and analysis of financial data. However, the survey revealed a significant trust deficit, with 37% admitting they do not completely trust their own data. This lack of confidence extends further, with 50% of senior finance and accounting professionals indicating a similar distrust in the financial data they work with regularly.
The survey findings underscore the challenges posed by manual processes and the potential for human error. Nearly two-thirds (64%) of respondents cited the overwhelming volume of manual day-to-day work as a hindrance to proper financial planning and analysis. Moreover, 68% expressed concerns that manual work leaves their organizations vulnerable to errors that could undermine crucial business decision-making.
Owen Ryan, co-CEO of BlackLine, emphasized the critical role of trusting financial data for effective decision-making across the entire business ecosystem. Despite some improvement in trust levels over the past five years, Ryan noted that trust is still not as robust as it should be, particularly in the face of external events that are challenging to predict or control.
The survey shed light on the reasons behind the lack of trust, with 31% citing data from too many sources, 27% blaming reliance on clunky spreadsheets, and 25% attributing distrust to outdated processes, including manual data collection.
In response to these challenges, C-suite and F&A leaders advocated for embracing new technologies like artificial intelligence (AI). The majority of respondents highlighted the importance of cloud computing (80%), generative AI (78%), and new forms of AI (76%) in improving business resiliency.
To address these concerns, Ryan emphasized the necessity for companies to adopt modern, next-generation solutions that automate cumbersome processes, providing complete visibility and control over financial data. Such measures, he noted, would be indispensable in navigating the unpredictable terrain of the future and building resilience for success.
