PwC report: CFOs plan for growth despite market challenges
November 30, 2022
CFOs cite cash management, particularly cash flow forecasting and scenario modeling, as critical to achieving goals in ‘turbulent times’
The results of PwC’s Pulse Survey indicate that chief financial officers are prioritizing cash management, and seeking out new techniques and technology to support their efforts to modernize. In the face of significant market uncertainties, CFO respondents indicated that optimizing working capital, forecasting cash flows and modeling scenarios are crucial to supporting growth.
“A vast majority of CFOs are investing in technologies like cloud and analytics to drive growth,” the PwC report reads. “With a growing focus on business process standardization, long-term strategies for using and protecting data require enhanced digitization. Enterprise digital transformation needs advanced analytics, artificial intelligence applications and cloud technology — the backbone of advanced financial tools.”
Nearly half of CFOs put scenario planning at the top of their list; according to the survey, “47% of CFOs say their top priority is building predictive models and scenario analysis capabilities”
Cash and cash flow forecasting was also cited as an area of focus for CFOs seeking to use their data wisely: “Forecasting future revenue amid multiple variables requires accurate data to provide a guide through turbulent times. In today’s economy there is less margin for error, so good planning means leveraging data effectively, updating valuations and factoring in the rising cost of capital. The uncertainty can be a challenge, but it can also present an opportunity for growth and strategic advantage.”
The aim is to optimize capital, and make strategic decisions that “will help counter inflation, contain costs and align capital allocations with business strategy,” according to the survey.