As businesses evolve, so does the role of financial controllers.
The 2024 Global EY DNA of the Financial Controller Report highlights the shift that many controllers anticipate in their roles. According to the study, 86% of controllers expect their roles to change significantly in the next five years, emphasizing the need for adaptability and preparation.
The question is, how controllers can prepare for these changes, and what key factors will shape the future of their profession?
Key Findings from the EY DNA of the Controller Survey
The survey underscores the transformative journey that controllers are likely to experience. Here are the primary highlights:
Growing Importance of Technology and Data Analytics
Technology Integration - Controllers are increasingly involved in integrating new technologies into financial operations. Many foresee a future where AI, machine learning, and automation are central to the function.
Data-Driven Decision Making - Over half of the controllers expect to be more engaged in strategic data analysis and insights generation. This reflects the trend of controllers moving beyond traditional financial reporting to becoming strategic business partners.
Expanding Strategic Role of Financial Controllers
Focus on Value Creation - Controllers anticipate a shift from traditional bookkeeping to a greater emphasis on value creation. This includes identifying cost-saving opportunities, improving efficiency, and supporting overall business strategy.
Cross-Functional Collaboration - 65% of respondents believe they will work more closely with other departments, such as operations and IT, to provide integrated insights.
Skills Needed for the Future
Technical Skills - As technology evolves, controllers will need proficiency in data analytics, AI tools, and ERP systems.
Soft Skills - Leadership, communication, and collaboration are becoming increasingly important. Controllers must articulate financial insights to non-financial stakeholders effectively.
Preparing for the Evolving Role of Controllers
Given these findings, what steps can controllers take to prepare? Here are some actionable strategies:
Embrace Digital Transformation
Controllers should invest time in understanding emerging technologies and how they apply to financial management. Becoming proficient in data analytics, AI, and automation tools will help them stay relevant as the profession becomes increasingly tech-driven.
Invest in Continuous Learning
Enroll in Courses - Pursuing courses in data science, programming, and financial technology can provide controllers with the skills needed to handle advanced tools.
Stay Updated on Industry Trends - Controllers should regularly engage with industry publications, webinars, and conferences to stay current on new developments.
Develop Strategic Thinking and Business Acumen
To transition from a numbers-focused role to a strategic partner, controllers must understand the broader business landscape.
Understand the Business Model
Controllers should become deeply familiar with their company’s business model, revenue streams, and cost structures. This knowledge will enable them to provide actionable insights that align with the organization’s goals.
Strengthen Relationships with Other Departments
Building relationships with departments like marketing, sales, and operations can help controllers understand the challenges and objectives of other teams. This cross-functional understanding enables them to provide more relevant and strategic insights.
Focus on Enhancing Soft Skills
The survey indicates a growing demand for leadership and communication skills. Controllers should work on developing these soft skills to effectively convey complex financial information and build rapport with stakeholders.
Leadership and Influence
Take Initiative - Controllers should seize opportunities to lead projects or present to senior management. This exposure can help them hone their leadership abilities.
Build Trust with Stakeholders - By being approachable, transparent, and reliable, controllers can establish themselves as trusted advisors within the organization.
Other Important Factors Shaping the Controller's Role
As controllers prepare for their changing role, they should consider the following additional factors:
Increasing Regulatory Demands
The regulatory demands are constantly evolving, and controllers must stay informed of new requirements and standards. By staying proactive and compliant, controllers can mitigate risks and ensure that their company adheres to industry regulations.
Environmental, Social, and Governance (ESG) Reporting
ESG reporting is becoming a significant part of financial reporting. Controllers will need to understand and integrate ESG metrics into their reporting processes as stakeholders demand greater transparency in these areas.
Leveraging AI and Automation for Efficiency
AI and automation tools can streamline repetitive tasks, allowing controllers to focus on strategic activities. Controllers should explore solutions like robotic process automation (RPA) for tasks like reconciliations, reporting, and data entry to increase productivity and reduce errors.
The Path Forward for Controllers
The EY DNA of the Controller Survey underscores the changing landscape of the controller role, driven by technology, a focus on strategic contributions, and the need for a broader skill set. By embracing digital transformation and enhancing soft skills, controllers can position themselves as indispensable assets to their organizations. The future is bright for controllers willing to adapt, and the next five years promise a rewarding journey for those prepared to meet the challenges ahead.
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