Donald Trump's return to the White House and the end of US election uncertainty increased CFO optimism last fall, according to our CFO Confidence Index. Starting next week, finance chiefs will begin to assess whether their optimism is warranted. Gradual, and sometimes sudden, changes in federal business regulations, economic policy, and the United States' response to strained geopolitical relations could introduce a whole new level of instability.
A dramatic possibility Bill Koefoed, CFO of OneStream Software, says change requires CFOs, other executives, and businesses to be adaptable and forward-thinking. But what needs to happen within finance and other functions to enable the necessary business and financial agility?
Most CFOs do a lot of internal work to leverage data and technology to drive faster, more informed decisions and ensure executives are resilient enough to stay on track with long-term goals. I am.
Our Katie-Kuehner Hebert speaks to Koefoed, a finance veteran with experience at B2B and consumer software companies, about this year's pressing demands on CFOs, how AI can provide solutions, and why new CFOs spoke about the need to make an impact from day one.
What are the most pressing issues facing CFOs in 2025 and how can they adapt?
How we choose to adapt will shape the trajectory of our company. One of the most impactful changes I have seen for CFOs is the shift from traditional budgeting to strategic budgeting. This approach prioritizes initiatives that drive growth and provides flexibility. By focusing on allocating resources that support immediate priorities and future opportunities, CFOs can maintain organizational resilience and increase competitive advantage.
Attracting and retaining finance talent is also a pressing issue. With fewer graduates entering the financial industry and the majority of CPAs retiring, the CFO sector is facing a growing talent shortage. This challenge is further exacerbated by the financial industry's growing demand for advanced analytical and technical skills. To address this, CFOs must work with HR to invest in upskilling, flexible compensation models, and developing a positive and motivating company culture. With great talent, finance can protect business stability and performance.
Finally, the sheer amount of data at CFOs' disposal is a challenge. Our report shows that nearly three-quarters of business leaders believe that data will be their organization's greatest asset by 2035, while more than 70% of CFOs believe that overwhelming information They report struggling to prioritize growth amidst influx. Data is a powerful enabler, but without a clear data-driven strategy, it can quickly become a major roadblock.
How can CFOs leverage AI to address these issues?
For CFOs, AI offers an unparalleled opportunity to optimize operations, enhance decision-making, and increase resilience. Leverage AI-powered tools to make your finance function faster, more efficient, more insightful, and more strategic.
Consider forecasting and budgeting. AI-powered predictive analytics allows CFOs to identify trends, predict risks, and generate more accurate forecasts, all in real-time. It means navigating economic uncertainty with more confidence and adapting to change faster. Additionally, day-to-day tasks such as expense management and financial reporting are more streamlined, freeing up time for higher-value activities.
To maximize the benefits of AI, be strategic about your deployment. Start small and focus on areas where automation and data-driven insights can provide the most value. Use AI tools to build your team's confidence and expertise and integrate them into your strategy. With thoughtful adoption of AI, finance departments can increase efficiency, improve decision-making, and position their organizations for sustainable growth.
How do you think the CFO role will evolve over the next 10 years?
The role of the CFO will only grow in influence. In fact, according to a global survey by OneStream, two-thirds of business leaders expect the CFO role to be more important in 2035 than it is today.
Over the next decade, I predict that CFOs will be at the forefront of business transformation, looking into the corners to help CEOs make faster, smarter decisions. CFOs of the future will be architects of resilience and growth, shaping organizations to succeed in a world where adaptability and purpose are essential to success.
Given that evolution, what advice would you give new CFOs about meeting the expectations of colleagues and investors?
My biggest advice for new CFOs is to build credibility and make an impact from day one. Your colleagues and investors are looking for more than just someone who can crunch numbers. They are looking for strategic leaders who understand the business holistically.
In our Finance 2035 report, four out of five investors say that to invest in a company they must have confidence that the CFO is an ambitious driver of company growth. This means digging deep into your company's operations, market position, and growth strategy to bring valuable insight to every conversation. As the CFO who recently led our company through a public offering, it was very important for us to connect the dots to our investors and show them that our company can capitalize on future trends.
To meet expectations from the start, new CFOs must also focus on communication. Investors want trust and transparency, while peers expect clarity and consistency. It's not just about reporting numbers. It's about telling the story behind it and explaining the 'why' and 'how' of decisions.
Leverage technology to work smarter and uncover deeper insights, but don't lose sight of the importance of collaboration across your organization. The most successful CFOs inspire confidence, build partnerships, and align financial strategy with a bold vision for the future.
