Five 2023 Finance Predictions We Got Right

For the Office of the CFO, 2023 delivered its usual share of unpredictability, but also a few developments that some in the industry (namely us!) were able to see coming. To close out the year, we wanted to look back at some of the predictions we made in late 2022 to see which came true or gained momentum in 2023, and if any missed the mark.

Prediction: Cash will retake its crown headed into 2023

✅ Cash proved to be king at the start of 2023. Preserving appropriate cash reserves and skillfully handling cash flow was essential to achieving financial stability and taking advantage of growth prospects. However, cash strategies are shifting heading into 2024. In the coming year, companies will need to concentrate on business optimization as inflation and rising interest rates combine to impede economic growth.

Prediction: Forecasting gets granular, especially when it comes to cash flow

✅ Throughout 2023, trusted and accurate forecasting was a key focus for finance leaders. Having access to financial budgeting, reporting, and forecasting in real-time enabled finance leaders to make more knowledgeable decisions and improve the accuracy of their forecasts, enhancing their organizations’ financial stability even during times of uncertainty. With scenario planning, for example, around fluctuating market costs, finance leaders were able to better understand the potential outcomes of different strategies.

Prediction: Volatile currencies will challenge the cash throne

✅ This has proven true, as currency markets continued to fluctuate, including a recent surge in the U.S. dollar. Thanks to real-time insights into data, finance leaders were able to keep a close watch on the status of their company finances and best plan for the unexpected, which is particularly critical in times like these.

Prediction: Back to basics in finance

✅ A focus on the basics proved to be the norm in 2023, as a concentration on diligent cash flow management and effective forecasting driven by data visibility and human decision-making was essential to business success. Technologies like AI, with an ability to quickly sift through and analyze vast amounts of data and provide insightful information for strategic decision-making, played a growing role in supporting this back-to-fundamentals approach. With the meteoric rise of ChatGPT this year, the importance of generative AI and its impact will only further progress in the coming year.

Prediction: Investments in people and technology will boost productivity

✅ Attracting and retaining talent was a challenge in 2023. One of the ways businesses can address this moving into the new year is by making investments in people and technology to boost productivity. This includes automation of routine functions that empower staff with strategic insights so they can play a more impactful role within their organizations. Enabling technologies, including Prophix’s Financial Performance Platform, that offer finance departments hyper precision, ultra-adaptability, and dramatic performance, will be increasingly important throughout 2024.

We looked into the crystal ball to predict what FP&A trends are to come from a finance perspective in 2024, but one is already clear: CFOs and other finance leaders have arrived at a true inflection point. Technology platforms designed to automate processes and augment employee performance have reached a maturity level that demands attention within the office of the CFO. For many CFOs, we predict the question they will be asking themselves at this time next year – “was our company in or was it out?”