CFOs See Silver Linings to Coronavirus Crisis

Elvera Bartels

The coronavirus pandemic has spurred surprising advancements at U.S. firms and pushed CFOs to reprioritize know-how financial commitment, in accordance to a Grant Thornton survey.

The accounting company described that extra than 60% of CFOs cited improved versatile and distant do the job environments as an upside of the pandemic, with forty% also noting improved collaboration, improved small business procedures, and an skill to superior aim on approach.

Amid the shift to distant do the job, sixty one% of finance chiefs indicated that they count on to enhance financial commitment in cybersecurity in the next calendar year. When questioned to name the three largest troubles struggling with their firms, 46% indicated cybersecurity risks, 46% selected know-how updates, and 30% explained distant workforce challenges.

Fifty-three percent of respondents are prioritizing extended-term foundational know-how infrastructure financial commitment about know-how that addresses quick small business demands (47%).

“A calendar year back, CFOs have been scrambling just to survive, but often a disaster can speed up beneficial alter,” Chris Schenkenberg, regional tax small business strains national running spouse at Grant Thornton, explained in a news release.

CFOs skewed damaging on taxes, with 39% saying the Biden administration’s tax designs will negatively impression their enterprises. Among the firms with extra than $one billion in revenue, 55% count on tax improvements to have a damaging impression, although only 29% of firms with revenues among $a hundred and one and $five hundred million felt the very same.

The survey also uncovered that numerous CFOs prepare to slash vacation and true estate bills in the coming calendar year and over and above and extra than 50 % prepare to enhance financial commitment in their companies’ DE&I (variety, fairness, and inclusion) and ESG (environmental, social, and governance) tactics.

CFOs skewed damaging on taxes, with 39% saying the Biden administration’s tax designs will negatively impression their enterprises. Among the firms with extra than $one billion in revenue, 55% count on tax improvements to have a damaging impression, although only 29% of firms with revenues among $a hundred and one and $five hundred million felt the very same.

Indicating the specific reason acquisition firm increase of 2020 will carry on, 84% of private firm respondents explained SPACs have improved their interest in likely general public. When questioned no matter if a SPAC or a regular IPO would be their choice, respondents have been almost equally split, with 49% picking out a SPAC and fifty one% picking out an IPO.

More than two-thirds of CFOs, even so, count on improved SPAC regulation from the Securities and Exchange Fee in 2021 although 55% believe that SPACs leave new general public firms overvalued.

coronavirus, ESG, Grant Thornton, distant do the job, SPACs, survey, Technological know-how

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