Talent Troubles: Why Re-Architecting Your COA Can Solve FP&A Hiring Challenges

July 30, 2024

The Talent Crunch in FP&A

Finding and retaining top talent in Financial Planning and Analysis (FP&A) has become increasingly difficult for many organizations. According to a recent survey by Deloitte, 82.4% of public companies and 68.9% of private companies face significant challenges in attracting and retaining finance and accounting talent​​. The reasons for this are multifaceted: the increasing complexity of financial regulations, the rapid evolution of technology, and the shifting demands of modern business all contribute to a highly competitive talent market.

The AFP highlights several key challenges in hiring FP&A talent. Organizations often find that candidates with the necessary technical skills and business acumen are in short supply​. Furthermore, the demand for these professionals has surged as companies recognize the critical role that effective FP&A can play in strategic planning and decision-making.

CEOs and CFOs are particularly concerned about this talent shortage. As companies navigate these turbulent times, they need FP&A professionals who are not only skilled in traditional finance but also adept in new technologies like AI, machine learning, and robotic process automation​​. However, the pool of candidates with these combined skills is limited, and the demand is high.

The High Cost of Poor COA Structure

While hiring top FP&A talent remains a priority, companies often overlook an internal solution that can significantly ease the burden on their FP&A teams: re-architecting the Chart of Accounts (COA). A well-structured COA can streamline data collection, enhance financial reporting accuracy, and reduce the time spent on manual data reconciliation. This, in turn, frees up FP&A professionals to focus on more strategic tasks, such as financial analysis and business planning.

Many organizations struggle with a COA that has evolved haphazardly over time. This often leads to inefficiencies that can consume up to 70% of FP&A resources, leaving little room for value-added activities. By contrast, a thoughtfully designed COA can do much of the heavy lifting, allowing FP&A teams to operate more efficiently and effectively.

Re-Architecting Your COA: A Strategic Imperative

  1. Data Accuracy and Integrity: A well-structured COA ensures that financial data is accurately categorized and easily accessible. This reduces the risk of errors and discrepancies, which can be time-consuming to resolve. It also improves the reliability of financial reports, which is crucial for informed decision-making.
  2. Streamlined Processes: Automating data collection and reconciliation processes through a re-architected COA can significantly reduce the manual workload on FP&A teams. This allows them to focus on higher-value tasks, such as strategic planning and analysis.
  3. Enhanced Reporting: A robust COA provides a clear and consistent framework for financial reporting. This makes it easier to generate insightful reports that can drive business strategy and performance. It also facilitates compliance with regulatory requirements, reducing the risk of penalties and fines.
  4. Scalability and Flexibility: As businesses grow and evolve, their financial reporting needs can become more complex. A flexible COA can easily adapt to these changes, ensuring that the finance function remains agile and responsive. This is particularly important in dynamic industries where business models and strategies can shift rapidly.

Realigning FP&A Focus

By investing in the re-architecture of the COA, companies can alleviate some of the pressures on their FP&A teams. This not only improves operational efficiency but also makes the organization more attractive to top talent. FP&A professionals are more likely to be drawn to companies where they can engage in strategic, high-impact work rather than getting bogged down in routine data management tasks.

Moreover, an optimized COA supports better collaboration between finance and other business units. It enables a more integrated approach to financial planning and analysis, fostering a culture of data-driven decision-making across the organization.

Conclusion

In today’s competitive business environment, the challenges of hiring and retaining top FP&A talent are significant. However, by re-architecting the COA, companies can enhance their financial processes, reduce the workload on their FP&A teams, and create a more attractive environment for top talent. This strategic move not only addresses the immediate talent shortage but also sets the foundation for long-term success in financial management.

Looking Ahead

Next week’s blog will explore an alternative solution to the FP&A talent crunch: FP&A as a Service. We will discuss the value of this model as an alternative to hiring in-house resources, especially when faced with fluctuating demands and the need for specialized skills and industry knowledge. Stay tuned to learn how FP&A as a Service can provide scalable, flexible, and expert support to meet your company’s financial planning and analysis needs.


References