The Top 5 Challenges CFOs Will Face in 2024

How NetSuite Supports CFOs to Manage Global Compliance

NetSuite's unified platform offers automated compliance management and visibility into global financial data, facilitating compliance with changing regulations.

Automated Compliance Tracking

NetSuite's software is equipped with features that automatically track and update compliance requirements based on global regulations. This ensures that finance teams are always aware of the latest changes and can adapt their processes accordingly.

Standardised Reporting

NetSuite allows CFOs to standardise financial reporting processes across regions, ensuring consistency and accuracy in financial data presentation. This simplifies the task of complying with diverse compliance standards.

Customisable Compliance Workflows

NetSuite allows users to create customisable compliance workflows, ensuring that specific regulatory requirements are met. This adaptability is crucial in a constantly changing compliance landscape.

The Rise of Remote Work and Distributed Finance Teams

In recent years, the traditional model of office-based work has changed. The rise of remote work and the dispersion of finance teams across different locations have become a common trend. While this shift offers finance teams flexibility, and work/life balance, and gives companies access to a global talent pool, it also presents unique challenges for Chief Financial Officers (CFOs) and finance leaders.

The key challenges associated with the rise of remote work and distributed finance teams include:

Collaboration Hurdles

Physical separation can hinder spontaneous collaboration among finance professionals. The absence of face-to-face interactions can lead to communication gaps and delayed decision-making.

Data Access Complexity

Ensuring that finance team members have secure access to essential financial data and systems, regardless of their physical location, is a critical challenge. Data accessibility must be maintained without compromising security.

Maintaining Financial Control

With teams working from various locations, maintaining financial control and oversight can be challenging. CFOs need mechanisms to ensure that financial processes and policies are consistently followed.

How NetSuite Supports Remote Work

NetSuite's cloud-based system enables remote access and collaboration among distributed teams, with role-based permissions for maintaining control. NetSuite addresses the challenges that are created by having a remote workforce by offering remote access to your companies finance management systems, without the added complexity of dated technology like remote desktops or fake cloud servers. This empowers finance teams with:

Simple Remote Access

NetSuite provides secure and remote access to financial data and systems from anywhere with an internet connection. Finance team members can work seamlessly, whether they are in the office, at home, or on the go.

Collaboration Tools

The platform offers built-in collaboration tools, enabling finance professionals to communicate, share documents, and collaborate on financial tasks, regardless of their physical locations.

Role-Based Permissions

NetSuite's role-based permissions ensure that only authorised individuals have access to sensitive financial data. CFOs can establish controls and permissions tailored to each team member's role and responsibilities.

Managing Increased Vendor and Supply Chain Risks

Concerns surrounding vendor and supply chain risks continue to be a top priority for Chief Financial Officers (CFOs) and finance leaders. Recent disruptions, such as the COVID-19 pandemic, have underscored the need for robust risk management strategies in this area.

The key challenges associated with vendor and supply chain risks include:

Disruption Vulnerability

The global supply chain is susceptible to various disruptions, including natural disasters, geopolitical events, and health crises. These disruptions can have far-reaching impacts on the availability of goods and services.

Vendor Performance

Ensuring that vendors meet quality and performance standards is crucial. Poor vendor performance can lead to production delays, increased costs, and damage to a company's reputation.

Compliance and Ethical Concerns

CFOs need to navigate complex compliance requirements and ethical considerations related to their supply chains. Violations can result in legal consequences and reputational damage.

How NetSuite Mitigates Vendor and Supply Chain Risks

NetSuite's supply chain and procurement modules offer valuable solutions to address vendor and supply chain risks. The platform empowers CFOs and finance teams with:

At a Glance Analytics into Vendor Performance

NetSuite provides real-time visibility into vendor performance metrics, allowing finance leaders to monitor and assess vendor performance against predefined benchmarks. This helps identify underperforming vendors early and facilitates data-driven decision-making.

Supply Chain Risk Assessment

The platform includes tools for evaluating and mitigating supply chain risks. CFOs can identify potential risks and develop strategies to minimise their impact on operations.

Compliance Monitoring

NetSuite's compliance monitoring features assist CFOs in ensuring that their supply chain partners adhere to ethical and regulatory standards. Any deviations can be promptly addressed to avoid potential legal and reputational issues.

By leveraging NetSuite's capabilities, CFOs can proactively manage vendor and supply chain risks, enhancing resilience and agility in an ever-changing business environment.

Cash Flow Forecasting in Uncertain Times

In the face of economic volatility, CFOs and finance leaders are tasked with the critical responsibility of maintaining financial stability through accurate and agile cash flow forecasting. Uncertain economic conditions, as seen in recent times, necessitate a forward-looking approach to financial management.

The key challenges associated with cash flow forecasting in uncertain times include:

Economic Volatility

Fluctuations in the economic landscape, such as changes in interest rates, currency exchange rates, and market conditions, can significantly impact cash flow. CFOs must navigate this volatility to ensure sufficient liquidity.

Revenue Variability

Businesses may experience irregular revenue patterns, making it challenging to predict cash inflows accurately. This is particularly relevant for industries sensitive to market dynamics like manufacturing, retail and wholesale distribution.

Expense Management

Managing and controlling expenses is essential during uncertain times. CFOs need to strike a balance between cost-cutting measures and ensuring that essential expenditures are met.

Scenario Planning

The ability to plan for multiple scenarios is crucial for adapting to changing circumstances. CFOs require budgeting tools and strategies to perform scenario analysis and make informed decisions.

How NetSuite Supports Modern Cash Flow Forecasting Strategies

NetSuite equips CFOs with advanced financial planning tools to address the challenges of cash flow forecasting in uncertain times. The platform offers:

Comprehensive Financial Planning

NetSuite's financial planning capabilities enable finance teams to create detailed cash flow forecasts that consider various financial components, including revenue, expenses, and capital expenditures.

Budgeting and 360 Degree Cash Analysis

The platform allows CFOs to perform scenario analysis by modelling different economic scenarios and their potential impacts on cash flow. This empowers finance leaders to make proactive decisions based on a range of possible outcomes.

Managing an Increasingly Young and Tech-Savvy Workforce

The modern workforce, which is characterised by a growing number of young professionals who are tech-savvy and digitally native. These individuals bring a wealth of technical skills and innovative ways of thinking to the finance industry, but they also have unique expectations and preferences. Here's how the financial talent shortage relates to this evolving workforce:

Tech Expectations

Young finance professionals are accustomed to modern technology and expect their workplace tools to be as intuitive and user-friendly as the apps and platforms they use in their daily lives. The financial talent shortage can hinder a business’ ability to meet these expectations if they lack access to tech-savvy talent.

Innovation Mindset

The younger generation often possesses a natural inclination toward innovation and digital transformation. They are eager to leverage technology to streamline processes and drive efficiency. However, the shortage of tech-savvy finance professionals can limit the capacity for innovation.

Skill Diversification

Young finance professionals are more likely to have diversified skill sets that encompass financial expertise, data analysis, and technology proficiency. They are well-equipped to bridge the gap between traditional finance and modern technology, but not giving them access to modern finance software can slow down adaptation to digital finance trends.

Why NetSuite Supports the New Wave of Finance Workers

NetSuite's approach aligns with the expectations and strengths of a tech-savvy finance workforce:

User-Friendly Interface

NetSuite's intuitive, and configurable user interface caters to individuals who are accustomed to seamless digital experiences, making it accessible to younger finance professionals.

Automation

NetSuite's automation features resonate with tech-savvy individuals who appreciate the power of automation in optimising financial processes.

Modern Data Analysis Tools

NetSuite provides built-in data analysis tools that align with the data-driven mindset of young finance professionals, enabling them to extract insights and drive informed decisions.

Final Thoughts

As we step into 2024, it's evident that the world of finance continues to evolve, presenting both challenges and opportunities. While the pandemic's impacts still reverberate, finance functions are adapting to the new normal.

As a modern CFO, you understand the importance of staying ahead of these challenges and embracing innovative solutions to ensure your company’s financial stability and continued growth. It's crucial to have the right technology by your side, empowering you and your finance team to navigate this ever-changing terrain effectively.

At TeamBlueSky, we specialise in helping CFOs like you modernise their finance platforms to meet emerging challenges head-on. Our expertise in leveraging modern finance solutions, such as NetSuite, can transform your finance operations, enhance efficiency, and provide the agility needed to thrive in uncertain times.

Together, let's navigate the future of finance with confidence and innovation. Contact TeamBlueSky now to schedule your consultation to see how NetSuite can fortify your financial management strategy.