7 accounting and finance trends that have emerged in the past 18 months
Sage looked back on 2021 and found interesting, research-backed trends emerging in the finance industry. And there’s a common thread in all of them.

Trend 1: The financial leadership role is evolving, from number-cruncher into storyteller
The Sage CFO 3.0 research found that digital transformation has been placed firmly at the top of finance leaders’ agendas and that they are taking the reins by embracing new techniques and technologies to usher in the digital workplace. In fact, the evolution of the finance role is intricately linked to digital empowerment. Finance leaders are now required to be more than mere number-crunchers – they must be strategic visionaries who can turn real-time data into compelling narratives that inform strategic business decisions. As finance leaders grow and excel in this new role, so too does their esteem in the eyes of their board members. Research shows that 92% of finance leaders are now held in higher regard, and business stakeholders are looking to them to help navigate their companies through change with accurate, relevant, and reliable insights that promote opportunity and reduce risk. In order to meet these expectations, finance leaders need to become digital transformation experts who can build agile, technologically powered teams geared for sustainable success.Trend 2: There’s greater acceptance that AI and automation drive agility
The amalgamation of robotic process automation (RPA), artificial intelligence (AI), and machine learning (ML) has created a new class of financial decision-maker who uses data and emerging technology to paint a vision for the future. Research found that 89% of CFOs welcome automation performing more of their routine accounting tasks in future, and 40% believe that AI and machine learning will help improve forecasting and financial planning even further. However, only a little over half say that the bulk of their processes are automated. This suggests that a massive shift is still coming – especially since 86% of CFOs believe that financial management technologies can help their businesses to discover new opportunities, better manage risk, and improve agility. Those that have already invested in automation solutions cite efficiency, streamlined processes, reduced human error, risk mitigation, and competitive advantage as the main business drivers. The greatest benefits seen so far include:- Real-time audits
- Efficient and accurate forecasting
- Strategic financial planning
- Faster closing
- Enhanced governance
Trend 3: Cyber-crime has become a bigger focus than ever
CFOs are increasingly looking to new technologies to reduce the risk of cybercrime and non-compliance in their businesses. As guardians of some of the most sensitive information, 31% of HR and payroll professionals – especially those using cloud systems – are more focused on cyber-security than they were a year ago. Although 91% of HR and payroll professionals say their businesses are fully compliant with the Protection of Personal Information Act (POPIA) and the General Data Protection Regulation (GDPR), 48% are still concerned about compliance and 63% worry about securely sharing personal employee information. There is, however, a growing acceptance of how cloud-based systems can help to alleviate cybersecurity concerns. According to the Sage CFO 3.0 research report, 66% of respondents believed that cloud-based systems are secure. Fast forward 18+ months and 88% of respondents who already use the cloud say their systems are more secure than before, and 65% say they also benefit from safer data processes and storage.Trend 4: Payroll and HR is being catapulted into the digital age
The Payroll and HR in SA: Rising to the challenges of change research conducted by Sage found that:- 77% of HR and payroll professionals struggle with the complexity of payroll taxes,
- 49% feel that the continuous changes in legislation and regulations drive payroll complexity, and
- 73% agree that COVID-19 has further exacerbated the situation.
Trend 5: Hybrid is becoming the de facto way of working
HR and payroll professionals have accepted that remote and hybrid working is here to stay. Finance leaders realise that if they are to thrive in this permanently changing landscape and successfully lead their remote working teams, they need to become experts in digital transformation. And to do that, they need better financial software. According to the Digital CFO research, 82% of surveyed businesses switched to fully remote or hybrid working environments in the past year. What’s more, 50% started hiring, training, and managing employees in a remote or hybrid environment, and 86% of HR and payroll professionals link the increased use of cloud technology to their organisations’ ability to operate in a remote or hybrid environment. In fact, 64% of medium-sized businesses and 50% of small businesses have increased their use of HR and payroll technology to support remote working teams. While many intend to shift to remote working, 41% of CFOs lack an integrated finance system and 39% lack an effective system to support this way of working. On-premise financial software systems are not fit for purpose, which means that in trying to meet their new mandates, finance leaders and their teams are overwhelmed by high volumes of data and swamped with manual tasks such as data inputting. These stresses are compounded for those who struggle to access their finance systems remotely: 35% of on-premise software users versus 24% of cloud users are overwhelmed by data overload.Trend 6: Businesses are taking Gen Z seriously
Generation Z are redefining brand loyalty and employee expectations. With specialist technology taking care of the everyday tasks, HR and payroll professionals are now able to shift their focus to creating an organisation that appeals to the next generation. This involves:- Managing employee engagement to increase productivity, motivation, and morale (48%),
- Freeing up HR’s time to advise executives (44%),
- Supporting increased needs around mental health (43%),
- Increasing employee satisfaction (40%),
- Strengthening organisational culture to create enduring bonds (38%), and
- Managing and retaining top talent (37%).