March 20, 2025

The business lovers

Joseph B. Hash

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