Thursday 27th August, 2020
The finance function will increasingly become a pivotal partner in driving forward-looking data insights to evaluate an organisation’s performance against its purpose, according to a report by PwC and the Association of Chartered Certified Accountants (ACCA).
Over 70% of the respondents surveyed in the report argued that the mainstream use of finance insights to evaluate an organisation’s performance against its purpose would be achieved in the next three to five years, highlighting a significant shift in the finance community’s contribution to the organisation.
The report explores individuals, or a group of individuals, that act as the conduit between the finance function and its internal and external stakeholders - in helping to track data that is essential to strategic operational decisions and in understanding where value is being created across the organisation.
Integrated reporting is a key area where finance business partners can make this contribution, utilising the framework of six capitals to measure an organisation’s performance against its purpose: financial capital, manufactured capital, intellectual capital, human capital, social and responsible capital, and natural capital, PwC said.
“Historically, we've been very focused on the financial value added. I think what we're going to see, what we are seeing, and we will see more of is a balance around the six capitals,” says Brian Furness, Global Consulting Finance Leader, Partner, PwC UK.
Respondents indicated that finance business partners would be taking on a much larger role in evaluating performance across all six capitals in the next three to five years, particularly in non-financial areas: