One thing recent years have made clear is that we’re navigating an era of rapidly shifting economic headlines. In this environment, finance departments must stay agile, prepared to adapt swiftly, and equipped to make well-informed decisions at a moment’s notice. As we near the end of 2024 and look to 2025, let us look at some of the trends that APQC has found through our research as we anticipate which priorities will be the focus for finance management in the coming year. While risk management has historically been a top priority, this year, we have been hearing a lot about digital transformation and data analytics aimed at enhancing overall business performance and resilience.
1. Digital transformation
Digital transformation in finance is more than just adopting new technology, it’s reshaping the approach to financial management. By leveraging automation, real-time data, and advanced analytics, finance departments are moving beyond manual tasks to focus on strategic decision-making. This shift enables quicker responses to economic changes, enhances accuracy, and strengthens compliance. Additionally, digital tools break down silos, fostering collaboration across teams and providing insights that drive growth. As finance departments embrace this evolution, many supported by Global Business Services (GBS) groups, they position themselves not only to keep pace with rapid market shifts but to lead their organizations forward in a data-driven, agile manner. Check out this recent infographic related to Robotic Process Automation (RPA): Robotic Process Automation (RPA) and Accounts Payable
2. Data Analytics
By leveraging analytics, finance teams can gain real-time insights into financial performance, uncover hidden trends, and identify opportunities for growth and efficiency. Advanced analytics tools allow for predictive forecasting, enabling finance departments to anticipate shifts in market conditions and adjust plans proactively. As we have seen in the past, any presidential election and transfer of power can create economic shifts and uncertainties, making data analytics essential for finance departments to adapt quickly and strategically to new policies and market conditions.
3. Risk Management
Due to increasing complexity and volatility in the global business environment, risk management is a top priority for finance departments. Whether it is market risk, credit risk, liquidity risk, operational risk, or cyber risk, being able to navigate these complexities and safeguard the organization’s financial health has required more emphasis and focus to identify future problems. Since governance is key to the success of a risk management program, many will be spending time ensuring that the proper policies are in place and the objectives are met. Here is a reminder of what we learned during our 2024 priorities survey as it related to Risk Management: Finance Teams Focused on Risk Management in 2024.
As we navigate through the complexities of the current financial climate, Finance departments continue to gear up to be more agile and data-driven while keeping a firm grip on the company’s financial health through governance, technology, and process improvements.