CFOs (Chief Financial Officers) play a critical role in managing organizations’ financial performance and ensuring long-term sustainability. The ongoing concerns about inflation and economic uncertainties worry corporations across the sectors. Many CFOs closely monitor regulatory and policy changes that could impact their organizations’ operations and financial performance.
According to a survey by Gartner, CFOs are planning a major change in this year’s function budgets and have listed sales, corporate IT, and supply chain as the most likely to increase.
In some cases, CFOs may take a more conservative approach to financial planning to manage potential risks and ensure that their organizations are well-positioned to weather any potential challenges.
This may involve prioritizing the budget for technology, innovation, and operating efficiency while focusing on cost control and financial discipline.
The Gartner survey shows sales is the function most likely to see a budget boost in 2023, with 73% of CFOs saying intended increases and nearly half of them by 10% or more.
Two-thirds of CFOs plan addition for corporate IT, with 29% planning to rise by 10% or more.
The supply chain is the third most likely area to see gains with 61% of CFOs, although the increases tend to be more moderate.
“CFOs remain cautious about their 2023 outlook and have reduced most budgets heading into this year,” said Alexander Bant, chief of research in the Gartner Finance practice.”
Sales is a key area of focus for CFOs, as it is critical in driving top-line revenue growth. By increasing the budget for sales, CFOs can help ensure that the sales team has the resources it needs to achieve its targets and drive growth. This may involve investing in areas such as sales training and development, customer relationship management (CRM) software, and sales automation tools.
”CFOs know that to drive profitable growth into the next phase of the business cycle, they can’t be late turning back on additional funding for sales.” said Alexander Bant.
In the digital era, technology is increasingly playing a critical role in business operations, excellency, ad customer satisfaction. By increasing the budget for corporate IT, CFOs can ensure that the organization has access to the latest technology and software tools, which can help improve efficiency, reduce costs, and drive innovation. This may involve investing in areas such as cloud computing, cybersecurity, data analytics, and digital transformation initiatives.
The supply chain is another critical area of focus for CFOs, as it plays a critical role in managing costs and ensuring the efficient delivery of products and services. By increasing the budget for the supply chain, they can help ensure that the organization has the resources it needs to manage risks, optimize processes, and improve supply chain visibility. This may involve investing in areas such as inventory management, logistics, and supplier relationship management.