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Financial reporting and regulatory compliance have become even more crucial for Chief Accounting Officers (CAOs). The importance of these responsibilities has grown significantly, reflecting the increasing need to navigate stricter accounting enforcement and manage compliance costs in unpredictable markets. Our 2024 CAO survey, which included 280 respondents comprising CAOs, C-level executives, and direct reports, revealed that 74 percent of C-level executives and 84 percent of direct reports agree with the heightened importance of financial reporting and regulatory compliance.

Amid this landscape, the role of CAOs continues to evolve. However, the survey also indicates a double-digit decline in the C-suite's perception of CAOs' role in executing core responsibilities and strategic initiatives. Despite a shift in perception, C-level executives continue to recognize the value of CAO contributions. In 2024, 39 percent of executives rated these contributions as “highly valuable,� compared to 53 percent in 2023. This change highlights an opportunity for CAOs to further adapt and innovate within their roles, ensuring continued alignment with evolving business needs.

As CAOs navigate these evolving expectations, this year’s survey highlights three priority topics:

• Talent management: The accounting profession faces a talent shortage primarily due to high entry barriers and perceived work-life balance challenges. Many CAOs are implementing flexible work schedules, increasing monetary benefits, and opting for outsourcing to attract and retain skilled professionals.
• M&A support: All parties agree that ensuring successful integration of accounting, controls, and technology in merger and acquisition activities is critical. However, there is a clear need for CAOs to expand their involvement in M&A processes to align with C-suite expectations and enhance overall effectiveness.
• GenAI implementation: Leveraging generative AI for operational efficiency remains a priority. However, CAO familiarity with GenAI had decreased last year, suggesting a need for deeper engagement with this transformative technology to modernize the accounting function and achieve significant efficiency gains.

Download our paper to learn more about how CAOs are adapting to these changes and preparing for the future to take on greater responsibilities.