The finance function is undergoing a profound transformation, driven by emerging priorities and challenges within the industry.
In August 2024, AvidXchange surveyed 500 finance leaders to learn more about their priorities and challenges heading into 2025. We found that most of these individuals have experienced the evolution of the finance function firsthand, shouldering new responsibilities outside of the traditional accounting and finance job scope this year.
Download the full report now to learn more about this and other trends our survey uncovered.
Macroeconomic Forces Influence Finance Change
There are several macroeconomic factors impacting the changing role of finance. One major challenge is the talent shortage in finance and accounting. As demand for skilled financial professionals outpaces supply, organizations struggle to find qualified personnel, looking to solutions like automation and outsourcing to fill the gap.
The Wall Street Journal recently reported the largest drop in accounting graduates in 20+ years. Sixty-six percent of our 2025 Trends Survey respondents said staffing shortages have impacted their accounting departments in 2024.
Digital transformation is also driving change. Technologies like artificial intelligence (AI), machine learning, and automation help to streamline processes, handling routine finance and accounting tasks such as data entry and reporting.
While this shift allows professionals to focus on higher-value work, such as data analysis and strategic planning, it also demands that finance pros build technical knowledge and digital skills to effectively leverage new technologies.
Additionally, the growing need for data-driven decision-making is reshaping the role of finance. Companies increasingly seek real-time data and predictive analytics to guide strategy and optimize performance. As a result, finance teams must adapt, managing vast data sets to provide actionable insights that align with broader business goals, ultimately playing a more strategic and consultative role within the organization.
Finance Pros Take on New Responsibilities
Our 2025 Trends Survey found that an overwhelming 87% of finance leaders were tasked with new responsibilities in 2024. Nearly three-quarters of survey respondents said their finance departments’ responsibilities have changed somewhat or significantly during their tenure.
Of the new responsibilities finance leaders have assumed this year, our survey found some of the most common center around technology. These include:
• Financial technology integration (47%)
• AI and automation evaluation and implementation (45%)
Others surround security and risk, which is not surprising given the prevalence of payment fraud today:
• Cybersecurity and fraud prevention (46%)
• Risk management mitigation (30%)
Many involve strategic, value-add activities, including:
• Data analytics and reporting (49%)
• Business process optimization (35%)
• Strategic financial planning and forecasting (27%)
• Strategic initiatives (26%)
• Business storytelling (23%)
Another theme was compliance and accountability, including activities like:
• Regulatory compliance and governance (35%)
• Environmental, social, and governance reporting (33%)
Supporting Finance Evolution with Technology
To navigate talent shortages and support finance and accounting teams as their roles evolve and they take on new responsibilities, some companies are adopting multifaceted strategies.
Many organizations are turning to AI and automation to manage staffing gaps. Our survey found that 77% of businesses have invested in AI to support staffing shortages. By automating repetitive tasks such as data entry, reconciliation, and invoice matching, organizations can free up existing staff to focus on higher-value activities, such as data analysis for strategic decision-making. AI can also improve efficiency and reduce errors, which helps employees become more productive. Fifty-one percent of finance leaders said their organization has invested in AI as part of an initiative to attract and retain talent.
Offering upskilling and continuous learning opportunities helps employees gain new competencies. This can not only boost employee engagement and retention but also equips the workforce with the skills needed to meet the demands of a rapidly evolving finance function. Our 2025 Trends Survey found that 51% of organizations offered professional development and training opportunities to attract and retain talent in 2024.
Other popular talent attraction and retention initiatives for 2024 included implementing flexible work arrangements like remote work and flexible hours (51%), offering competitive salaries and benefits (45%), and creating clear career advancement paths (35%).
The Evolution of the Finance Function in 2025
The finance function is undergoing a significant transformation driven by both broad economic factors and the rapid adoption of advanced technologies. As organizations grapple with talent shortages and the demand for more strategic financial insights, finance professionals are being tasked with new responsibilities that extend beyond traditional accounting duties.
Automation and AI are some of the most influential technologies, playing key roles in bridging staffing gaps and enabling finance teams to focus on high-value strategic activities like data analytics and risk management.
Additionally, many companies are focused on attracting and retaining talent while developing the digital skills of their workforce by offering upskilling and other professional development opportunities.
As the finance function continues to evolve, these strategies will help businesses remain competitive and supportive of finance professionals working to meet the increasing demands of their roles. To stay ahead, astute organizations will prioritize both technological adoption and talent development as they navigate the changing finance landscape.
Learn more about trends impacting finance and accounting teams in 2025 by downloading our free report, “2025 Finance Focus.”