APQC conducted its annual 2024 Financial Management Priorities survey in late 2023 to better understand the focus areas, initiatives, and challenges that will shape the finance function in 2024. The survey, which included approximately 330 participants representing 22 different industries, asked respondents questions across four broad topics:
- finance process improvement,
- finance data management,
- cash flow management, and
- risk management.
We found that the number one priority for 2024 is a focus on finance function process improvement. Many are prioritizing core fundamentals like enterprise resource planning (ERP) systems, process automation, and end-to-end-process documentation. We have seen a steady increase, year over year, in the companies that we surveyed who have fully implemented an ERP system, up to 43% this year from 38% last year. Broadly speaking, respondents recognize the value of these systems in supporting automation, improving data quality and consistency, and optimizing processes across an enterprise.
Cash flow management remains a top concern for many organizations. While the cost of goods sold increasing due to inflation has been an issue for the past few years, we are now seeing a rise in the number of respondents who are reporting customer invoices not being paid on time as a top challenge for them when speaking of managing cash flow. Causes for this added concern could be economic factors or supply chain disruptions or changes in payment culture. To manage cash flow, respondents report that they are decreasing spending and expenses.
The need to create accurate financial forecasts is a key motivator for respondents when asked about finance data management. Market instability and the shift to remote work have made it more important than ever for organizations to have their finger on the pulse of the business. And we found that most organizations across all industries and regions report leveraging advanced data visualization to improve storytelling of financial reports, transforming static documents into dynamic, and interactive tools for analysis and communication.
Given the ever-present threat of cyberattacks, geopolitical insecurity, and market instability, it makes sense to see that almost one-third of respondents cited risk management as a priority for 2024.
Organizations are constantly looking for ways to build the foundations for a stronger and more resilient future that can withstand whatever disruptions might occur. So, it makes sense to see that finance functions are prioritizing data management, process improvement, cash flow management, and risk management as key pillars for these foundations in 2024. While no one can perfectly predict the future, investments in all four of these areas help organizations to make better decisions and respond to disruptions much more quickly.
See the full collection for more information and insight on 2024 Financial Management Priorities.