According to a Global Economic Outlook 2023 by OECD, the global economy is recovering weakly. The global GDP will thus grow from 3.3% in 2022 to 2.7% in 2023. Economic growth will increase in 2023. In 2023, the economy will grow by 2.9%. Worldwide, household budgets are strained. Inflation is all over. Businesses are, however, picking.
Consumer sentiments are improving. China’s reopening will perhaps boost global economic growth. It means that Financial Planning and Analysis should be different in 2023. Chief financial officers should focus on how to grow revenue in 2023. Growing revenue means adjusting to new trends. It means collaboration.
Staying informed is important. There’s more to do to thrive as a CFO and FP&A in 2023. This analysis considers seven strategies that can help financial experts this year.
1. Build Agility
The recent global pandemic has proved to businesses that agility is the only way to survive. FP&As should therefore focus on making their businesses more agile in 2023. One way to do this is by being informed on current Finance News for FP&As and CFOs.
Financial experts can advise clients on the best moves to make. It’s only possible if the experts themselves are better informed. Economic uncertainty is more evident today than ever.
The only way to overcome this is by planning continuously. Planning involves having ideas to make a business adaptive to new changes. Financial gurus should be strategizing on how to maneuver market downturns. Labor shortages are evident all over. Supply chains are unstable. Competition is growing. But economic volatility is also here.
With constant planning, financial experts can develop agile frameworks. These combine operational, economic, and strategic planning. Such integrations will make organizations more flexible. Organizations can easily adjust to changing times. They can remain successful and competitive. Financial specialists should shift from periodic planning to continuous planning.
2. Analyze Data
Data analysis is your third eye. By analyzing different sets of data, you gain invaluable insights. Data analysis will give you the information you need to make wiser decisions. With informed decision-making, your organization’s destiny is safe.
Don’t forget that the business world is data-driven today. If you leverage the power of data, you can have a competitive edge. Analyze current financial trends.
Analyze past economic trends. Use the insights you generate to predict the future of the financial industries. These insights will help you develop a few scenarios. Such scenarios will enable you to prepare for positivity or negativity. Forecasting is vital.
It allows you to preempt possible challenges. It prepares you to grab emerging opportunities. Forecasts enable you to maneuver the financial markets with more confidence.
3. Encourage Teamwork
Today, you only win if everyone wins. CFOs should collaborate with FP&As. Their cooperation will enable them to learn from each other. Teams work towards the same goals. Imagine how easier it can be to ask each other questions you struggle with. Sharing worries and thoughts will help you be better prepared to face challenges.
Teamwork should continue beyond the finance department. Join hands with all the departments in your organization. Come together and discuss how you can move at the same speed.
4. Understand the Changing Roles
Financial responsibilities are ever-changing. In 2023, CFOs will be business partners. Today FP&As are collaborating with all departments. CFOs’ responsibilities today include facilitating operational success. They promote financial success. Beyond their traditional financial roles, financial experts in 2023 should help firms identify opportunities for saving costs.
It’s their responsibility to help the firms they work for improve their revenue. These experts should identify strategies for organizations to cut down costs. FP&As today have the role of increasing the visibility of their organizations.
These experts should introduce relevant tools. Decision-makers need valuable tools to track revenue and expenses. CFOs should facilitate access to real-time financial metrics by decision-makers. This way, they can increase organizational efficiency.
They can drive business growth. CFOs should advise organizations on the proper taxation procedures. Financial experts should ensure regulatory compliance. It’s their role to maintain good relationships with investors and creditors.
5. Use New Tools
Digital transformation is unavoidable in today’s digital era. It’s the only way to keep up with competition. By embracing digital changes, organizations can leverage technological powers. Firms can improve their customer service. Companies can create more efficient workflows.
The end is increased revenue. FP&As should automate their workflows. New digital tools will help these experts generate new ideas. They’ll help them explain complex concepts better.
6. Prepare for the Unexpected
Life has many surprises. So does the financial world. A global pandemic could arise. It will affect how the financial markets operate. Instability in one part of the world can influence the financial world. It’s best to prepare. Risk management is a must think-of as a CFO or FP&A.
A risk management strategy will help you be ready when anything happens. It enables you to identify possible problems. Risk mitigation involves identifying solutions to anticipated risks. It will help you avoid those risks. And in case these risks happen, you’ll have the right solutions for them.
7. Improve Efficiency
All companies want today is efficiency. Efficiency is essential in operations and even in people. Meaning businesses have a broader scope to work on in 2023. Businesses are aware that inefficient FP&A procedures are costly.
Organizations should build more efficient FP&A teams in 2023. They’ll get here by analyzing trends. It also consists in being smart at financial planning. CFOs must learn how to monitor KPIs. They must know how to optimize different financial processes.
These experts must know how to leverage their teams’ strengths. Organizations in 2023 won’t rush to hire experts they don’t believe in. The cost of hiring is expensive. Organizations are planning better. They will only hire experts they can have for a longer time.
Firms only need experts who will help them achieve their organizational objectives. Financial experts should understand different workforce planning models.
The above seven strategies will help FP&As and CFOs meet their priorities. Above all, these experts should stay updated with trends in the financial sector. This way, they can advise their clients accordingly.