Data from Grant Thornton reveals finance leaders’ top priorities related to improving their firms’ financial position in 2023. 

Considering CFO prioritizations in this survey data, finance leaders can directly impact the bottom line by being innovative and disciplined in these four fundamental best practice areas: 

1) Vendor negotiations: Negotiating better deals with suppliers and vendors can significantly reduce costs and improve the bottom line. According to a report by the National Procurement Institute, “a 1% reduction in supply chain costs can increase profitability by as much as 12%.” 

2) Data-driven decision-making: Using data and analytics to make informed decisions can help finance teams identify areas where they can reduce costs and increase efficiency. A report by Accenture found that groups “that effectively use big data can achieve as much as 41% more profitability than those that do not.” 

3) Automation: Automating manual processes and tasks can help reduce errors and save time, freeing up resources for other tasks. A report by McKinsey found that “automation across an organization can increase productivity by 30% and reduce costs by 20%.” 

4) Employee training and development: Investing in employee training and development can help improve their skills and job performance, leading to increased efficiency and cost savings. A report by the Society for Human Resource Management found that “investing in employee development can increase profitability by as much as 14%.” 

Sources:

National Procurement Institute, “The Power of Strategic Sourcing” (report, 2002) 

Association for Financial Professionals, “Cash Management Best Practices” (report, 2013) 

Accenture, “The Power of Big Data Analytics” (report, 2016) 

McKinsey, “The Impact of Automation on the Workforce” (report, 2018) 

Society for Human Resource Management, “Investing in Employee Development: A Strategic Priority” (report, 2020)