2025 CFO Report

Finance leaders point to two issues tied for first place: rising operational costs and attracting and retaining qualified talent (both at 45%).

These are closely followed by economic volatility (39%), painting a picture of a difficult external environment where resources are expensive and talent is scarce.

Within the finance department itself, the focus shifts to control, readiness, and scalability. The top finance-specific challenges — maintaining regulatory compliance (32%), passing financial audits (30%), and integrating post-M&A financials (30%) — are foundational to maintaining investor confidence.

Half of finance leaders (51%) report that their departments are currently understaffed, creating significant operational risks and bottlenecks. This is an increase from last year, where only 18% of CFOs cited hiring people with the right skills as a top challenge.

The drivers behind this shortage are twofold: organization growth outpacing hiring and uncompetitive compensation (both at 45%). A notable 42% at least partially attribute this talent gap to finance professionals moving away from clerical roles due to AI automation.

The adoption of AI in finance is no longer a question of “if” but “when and how much?” Every finance leader we surveyed is either planning to adopt or is already using AI in their finance function.

94% are either testing or have already deployed AI. This is a notable increase from last year, where 74% of CFOs reported using AI for finance. While adoption is widespread, only 17% have broadly deployed AI and only 5% have fully embedded it — suggesting finance leaders are only scratching the surface of AI’s full potential.

Leaders cite the top benefits as improving accuracy and quality (45%), generating strategic insights (39%), and strengthening compliance (37%). This focus on higher-value outcomes underscores a strategic shift where AI is seen as a critical component for finance activities, not just an operational tool.

A resounding 96% of finance leaders confirm working with an outsourced finance and accounting partner — up from 79% in 2024. Leveraging third-party partners has become standard operating procedure.

This shift is not about offloading simple clerical work. Leaders are delegating highly strategic and complex functions. They’re using partners to access senior-level expertise that is difficult and time-consuming to hire directly. The most commonly outsourced services are FP&A reporting (62%), budgeting and forecasting (56%), and cash management (54%).

A significant majority (62%) of finance leaders report completing financial close activities within 9 days. This represents a sizable leap in performance from just a year ago, when only 8% of CFOs reported completing their close within a 10-day window.

This acceleration is the result of two forces reshaping the finance function: the strategic implementation of AI within the finance function and increased financial and accounting services outsourcing.

Despite persistent economic uncertainty and policy shifts in 2025, finance leaders are demonstrating surprising resilience. Over half (57%) maintain a positive outlook on their 12-month financial forecast, while another 31% feel neutral about the current economic impact.

This optimism is reflected in surgical and strategic actions: delaying capital investments (37%), re-allocating capital (36%), and re-negotiating vendor contracts (33%). Broad hiring freezes (21%) and workforce reductions (16%) remain far less common — signaling that leaders view the talent crunch as a more significant threat than short-term economic headwinds.