Regional CFO and controller roles are at a crossroads, and there is a widespread expectation that they will both need to better support business growth in the future. But is that wise? 

Like many other sectors of the white-collar world, the accounting profession is not in a good space in this new era of Gen-AI.

As finews.asia commented in May, the new tech is on the verge of usurping whatever joy the nominal internal finance department employee might have ever had in their job by automating journal entries, or the booking of credits and debits and corresponding balances.

No Calculations Left

Moreover, the interesting stuff beyond plain financial statements – recognizing patterns, developing, and calculating new and different metrics and ratios for the consumption of departmental finance and accounting heads and, subsequently management, the public, and investors – will also potentially become the purview of artificial intelligence.

That understanding of how uncertain the future is beginning to seep through all parts of the profession, as the inaugural 2024 EY report on financial controllers indicates. The global consulting firm released it last week as part of its CFO Imperative Series and surveyed 1,200 financial controllers in 28 countries and territories.

More Business-Friendly

One of the key statistics here in the region is a stark one as almost 9 in 10 controllers expect their roles to «change dramatically» by 2030. 

But there is something more important than that. About 35 percent expect to increase their focus on value creation in a way that actively supports business growth, rather than just providing «value protection and optimization».

Unknown Skills

«Almost a quarter (23 percent) of financial controllers surveyed expect their roles to demand completely different – and perhaps even «unknown» – skills by the end of the decade. Just 12 percent say their future role will be similar to today’s,» EY indicates.

A substantial majority (71 percent) already use AI in daily tasks while using data to provide strategic insights, implying that many already see the writing on the wall.

No Politics

But there is a little problem here. The last thing the average financial controller usually wants to do or be seen doing is getting all corporate by sidling up with management and the front line.

Their fundamental self-image is that of  - well – a controller. And changing that is going to take a much larger upheaval than tech, even if it comes wrapped up in the guise of a generative tool.

A separate publication released by HAYS Malaysia, a recruitment firm, titled «The Evolving DNA of a CFO in Southeast Asia» comes to similar conclusions.

CFO Remit

They took 150 observations from CFOs working in Malaysia, Singapore, and Thailand, although the fundamental findings were much the same.

Their survey suggests that CFOs should adopt a more proactive stance and partner with departments besides finance «as this enables a unified approach towards business goals across the operation».

Small Problem

There is only a small problem with all of this. Who would then perform the CFO and controller’s one main job - substantiating, vetting, and comforting a company’s accounts?

Take the average international financial institution where being too close to the business would impair their relationship with external accountants and have larger downstream ramifications.

No Independence

Above a certain size, and particularly if they are publicly listed, companies must have both teams in place.

External ones can’t complete the job alone unless they want to render the independence of the annual audit statement that verifies comfort with the income statement and balance sheet meaningless. That could impact security valuations if market confidence becomes impaired.

Some Controls

But there is a larger point here. There are already enough people around the executives and front line supporting them in their efforts to grow the business and help with strategy.

Given that, it might be wiser to have someone out there who can keep a measure of financial control - or at least indicate that what the business side intends to do isn’t going to break the bank. The controller's job might change in the future, even in the way that many expect, but new tech isn't going to change anything about their fundamental functional importance.