Nearly 85% of financial leaders are reforecasting in preparation for an impending recession, with only 4% reporting that a recession will not affect their business in 2023, according to a OneStream survey.
“The current economic landscape will continue to challenge finance leaders and organizations well into the new year,” says Bill Koefoed, CFO, OneStream. “Agility will be a key differentiator for businesses looking to succeed in the new year. Financial leaders must ensure they have the correct technology in place to accurately forecast scenarios and plan accordingly. OneStream is proud to provide our customers with an intelligent finance platform that helps them prepare for the numerous factors impacting their businesses.”
- Almost half of the leaders surveyed (47%) identified economic disruption as the largest threat to business in 2023. This is a 57% increase compared to May, when only 30% of respondents reported economic disruption as the largest threat.
- Most (75%) expect ongoing economic and supply chain challenges to last into mid to late 2023 or beyond, and 72% expect that inflation won’t recede until the same timeframe. To address this outlook, over half of respondents noted they are increasing prices (56%), slowing hiring or reducing operational costs (47%) and renegotiating contracts with suppliers (39%).
- Most businesses will invest in ESG and DEI the same if not more in 2023.
- The talent shortage and great resignation was identified as the No. 2 concern for financial leaders.
- 57% of respondents are planning to invest more in cloud-based planning and reporting solutions in 2023, and 48% will invest more in predictive analytics. 61% are already using cloud-based planning and reporting solutions, while 37% are utilizing predictive analytics.
- When asked about the top use cases for artificial intelligence and machine learning technology, 48% see financial reporting as the top opportunity.