One common thread that runs through all of the major themes in finance, investment, and management accounting professionals is that professionals adjust to technological, social, and economic change: the requirement for the finance, investment and management accounting experts in the business to be more of strategic business leaders and value-adding partners inside their organization.

• What should management accounting and finance professionals be looking for as they make this transition?
• What sparked far more change in 2021, and what will affect how we work in 2022?

Here are the significant trends that are transforming the industry, as well as how the management accounting profession should respond to them.

Transformational roles as a result of technological advancements

Covid-19 has accelerated digital transformation in several industries. According to a McKinsey survey from earlier this year, “Covid has pushed organizations over the technology tipping point…[accelerating] the digitalization of their customer and distribution network relationships, as well as their internal systems by three to four years.”

Accounting and finance leaders must ensure that their organizations have digital transformation strategies in place, including the development of specialized automation technologies like data analytics, RPA, blockchain, and cloud-based computing. The goal is to invest in and build broader abilities like strategy development and advanced data analytics so that our professionals can provide greater insight and forethought to support long-term value growth.

Diversity, Equity, and Inclusion (DE & I) is crucial in the battle of talent

The Institute of Management Accountants (IMA), published a report earlier this year called ‘Diversifying US Accounting Talent’, which discussed the gender imbalance in the management accounting profession in terms of race, gender, and sexual orientation, as well as what can be done to address it.

In a world of ‘VUCA’ (volatility, uncertainty, complexity, and ambiguity), businesses are discovering that recruiting, nurturing, and developing a diverse and inclusive talent pool is the correct thing to do – both for society and for the better business outcomes.

A sustainable company is no longer a choice, but rather a requirement

The International Financial Reporting Standards (IFRS) Foundation will form an International Sustainability Standards Board to gain a broader baseline of sustainability disclosure by June 2022, according to one of the major statements made during the COP26 climate change summit in Glasgow.

Sustainability standards will be positioned alongside accounting and financial standards under the aegis of the IFRS Foundation, which is a significant milestone in global sustainability reporting and disclosure.

In a multi-stakeholder environment, the elevated status of ESG and sustainability metrics will necessitate an integrated approach to sustainable business management and enterprise value production. In short, sustainable business management encompasses the full value cycle of an organization, not only external disclosures.

Seeking for reduced constraints

Automation will continue to be developed in the hopes of reducing risk. According to a recent Bloomberg report, one-third of accounting and finance professionals are studying or deploying automation as a strategy to reduce employee exposure to COVID-related risks, according to a Federal Reserve poll. Organizations will face labor shortages and spillover effects from the Great Resignation of 2021, thus the war for the greatest talent will continue unabated.

According to a PwC study for chief finance officer Dive in August 2021, “65 percent of employees were looking for a new job, and 88 percent of executives reported their corporation was seeing higher-than-normal turnover.”  CFO’s will be responsible for investing in employees to make their company “the preferred destination.”