FP&A has become a strong focal point for CFOs who have either gone through substantial digital transformations, outsourced their accounting tasks or have the talent required to delegate the day-to-day duties of finance functions. As the term itself evolves, how technology can be used to make FP&A a more collaborative and data-intensive process also continues to grow.
According to new data from Datarails, the number of software solutions CFOs have used in 2024 to support their FP&A functions has increased. According to their data, 61% of CFOs implemented FP&A software this year, up from 19% in 2023 — a 221% increase.
CFOs seeking solutions in tax, ERP and FP&A
While FP&A software spending increased, it is still behind overall spending in areas like tax software and enterprise resource planning (ERP). Nearly three-quarters (74%) said they spent on tax software this year, with just over two-thirds (68%) spending on accounting software or investments in their ERP software. Accounts payable and receivable systems (44%) and spend management solutions (37%) were also top spending areas.
FP&A solutions’ growing importance is unanimous among CFOs, with more than half (56%) labeling such technology as extremely important. Notably, not one respondent labeled FP&A software as not important at all.
Big companies plan to spend less
While in 2023 the trend of the larger the company, the larger the tech spend was evident, this year’s spend projection was much different. Unlike companies with between 50 to 500 employees, which planned to increase tech spending, companies with 500 to 1,000 employees said they hoped to significantly cut their tech spending by 19%.
Surveyors note that average spending for companies with $800 million in revenue was $63,598, roughly the same price as one entry-level staff accountant at a Big Four firm.
When comparing finance tech spend to other departments, an area where boards have expressed favor outside of finance, most CFOs now say the expenditure amount on increasing technology is the same. Thirty-seven percent said so, with another 34% saying finance spending was slightly higher and another 24% saying spending was slightly lower.For small to mid-size companies looking to increase their tech spend on the finance side, areas of focus were financial reporting (26%), analytics (22%), risk assessment and management (21%), accounts receivable (17%), and invoice and billing (14%).
AI’s role in CFO marketability and 2026 outlook
For CFOs looking for another role, their ability to articulate AI’s function as well as leverage it in their next role may be crucial to setting themselves apart from competitors. Ninety-one percent of CFOs agreed that having AI skills enhanced a finance leader’s market value. Ninety-seven percent said they hope to one day be a CEO in their career as well, but the market for CFO-to-CEO transition may be competitive as well — more than half (52%) of the CFOs surveyed said they believe they could take a CEO position right now.
As for AI’s impact in two years, nearly four-in-10 (39%) of CFOs said up to 30% of all finance roles will be reduced. Over half (57%) of all respondents said roles will decrease because of AI’s impact on the finance function.
By industry, CFOs in banking, financial services and insurance lead the way in concerns (59%) but aren’t alone in bracing for cuts — 57% in IT, software and technology say they expect job losses within their finance teams. Health and pharma CFOs echo similar concerns, with 44% predicting a decrease in their finance roles by 2026.
