CFOs See Silver Linings to Coronavirus Crisis

The coronavirus pandemic has spurred sudden advancements at U.S. organizations and pushed CFOs to reprioritize technological innovation financial commitment, according to a Grant Thornton study.

The accounting firm noted that a lot more than 60{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} of CFOs cited improved versatile and remote operate environments as an upside of the pandemic, with forty{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} also noting improved collaboration, improved business enterprise procedures, and an capability to far better target on approach.

Amid the shift to remote operate, 61{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} of finance chiefs indicated that they count on to maximize financial commitment in cybersecurity in the subsequent year. When questioned to title the three biggest problems struggling with their organizations, 46{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} indicated cybersecurity hazards, 46{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} chose technological innovation upgrades, and 30{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} mentioned remote workforce challenges.

Fifty-three p.c of respondents are prioritizing lengthy-time period foundational technological innovation infrastructure financial commitment above technological innovation that addresses instant business enterprise needs (47{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad}).

“A year back, CFOs had been scrambling just to endure, but occasionally a crisis can accelerate constructive adjust,” Chris Schenkenberg, regional tax business enterprise strains national handling partner at Grant Thornton, mentioned in a news release.

CFOs skewed damaging on taxes, with 39{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} declaring the Biden administration’s tax strategies will negatively impression their corporations. Among the organizations with a lot more than $one billion in profits, fifty five{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} count on tax modifications to have a damaging impression, though only 29{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} of organizations with revenues among $one hundred and one and $500 million felt the similar.

The study also revealed that a lot of CFOs approach to slice vacation and genuine estate expenses in the coming year and outside of and a lot more than 50 {ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} approach to maximize financial commitment in their companies’ DE&I (variety, fairness, and inclusion) and ESG (environmental, social, and governance) procedures.

CFOs skewed damaging on taxes, with 39{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} declaring the Biden administration’s tax strategies will negatively impression their corporations. Among the organizations with a lot more than $one billion in profits, fifty five{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} count on tax modifications to have a damaging impression, though only 29{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} of organizations with revenues among $one hundred and one and $500 million felt the similar.

Indicating the particular purpose acquisition company growth of 2020 will proceed, eighty four{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} of personal company respondents mentioned SPACs have elevated their interest in heading general public. When questioned no matter if a SPAC or a standard IPO would be their choice, respondents had been pretty much equally break up, with 49{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} picking a SPAC and 51{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} picking an IPO.

Additional than two-thirds of CFOs, on the other hand, count on elevated SPAC regulation from the Securities and Exchange Commission in 2021 though fifty five{ae9868201ea352e02dded42c9f03788806ac4deebecf3e725332939dc9b357ad} feel SPACs depart new general public organizations overvalued.

coronavirus, ESG, Grant Thornton, remote operate, SPACs, study, Technological know-how