How CFOs can do more with less whilst remaining innovative

CFOs and finance teams have been grappling with the concept of innovation since the start of the decade. What began as a pivot to working remotely, and sustaining productivity during COVID, has evolved. We are now seeing the incremental automation of repeat activities and end-to-end redesigning of finance processes. The next tranche of investment for finance teams however, comes with dual challenges.

Broader market conditions mean that business leaders are becoming more cost conscious. CFOs are being asked to consider new technologies or capabilities while also lowering the cost of the finance function. At the same time, many CFOs have taken on new responsibilities around risk management, cybersecurity, and compliance. The Payment Times Reporting Scheme and incoming Australian Sustainability Reporting Standards are recent examples of newer obligations that are absorbing time and valuable resources.

So, in 2025, how can the finance function do more with less whilst remaining innovative?

Clear roles and prioritisation are crucial to delivering process efficiencies, as well as collaboration across the organisation to evaluate technology solutions, including AI and machine learning. Optimising finance team structures, leveraging external partnerships for transformation, outsourcing strategically, and adding specialised expertise will also enhance capabilities, mitigate risks, and help to manage costs more effectively.

Alongside cost control, effective cash flow management will remain critical for CFOs this year. Increased liquidity offers flexibility during tougher trading conditions and working capital cycles must be shortened to accelerate the conversion of earnings to cash. Proactive debtor management should begin when work starts, not when invoices fall overdue. Helpful measures may include agreed procedural steps, increased customer contact before invoice due dates, and a better understanding of customer billing cycles. Rolling 13-week cash flow forecasts should also be part of the CFO toolkit to help identify cash flow constraints or additional funding requirements early on.