Nine in 10 finance decision makers describe their finance teams as “lean” and “overextended”—likely due to tight budgets, increased competition, and rapidly changing market dynamics—a problem that is keeping them up at night, according to a new survey from finance and accounting AI-powered marketplace Paro.
The purpose of the survey was to uncover current challenges, sentiments, and unmet needs of finance departments within mid-market businesses. It was conducted last February using in-depth interviews and video diaries conducted in collaboration with market research studio Bixa. Respondents included U.S.-based C-Suite executives or senior management in accounting, finance, or HR.
Lean finance teams create high risk of costly errors and missed deadlines, especially around accounts receivable, insufficient time to focus on strategic initiatives, and inability to scale teams and skills to align with rapid company growth.
“These findings underscore the critical challenges companies face in managing their finances with limited resources and talent,” Paro CEO Anita Samojednik said in a statement. “The complexities of today’s financial landscape highlight the urgent need for—and frankly the lack of—specialized strategic finance solutions. By leveraging uniquely skilled finance resources and advanced technologies, companies can address immediate pain points and also build a foundation for sustainable long-term growth and resilience.”
Specific staffing challenges, like increasingly complex IRS audits, lead finance executives to search for short-term “Band-Aids” to cope, such as hasty temporary hires or outsourcing. The research found seven in 10 participants expect to need extra help at the end of the year to close company books, prepare for taxes, and sort out employee benefits.
What finance decision makers really want, however, are long-term strategic solutions that provide stability and expertise. According to the study, seven in 10 participants indicated that when they hire externally, they seek experts that can add strategic financial guidance.
These staffing issues, combined with other financial, growth, and operational triggers, put immense pressure on already-stretched finance teams. Many companies are considering AI as one potential solution to staffing struggles.
Respondents see AI as a tool to tackle more tactical work, like organizing data, completing repetitive tasks, and identifying potential issues, which would allow financial teams to handle more complex and strategic activities, according to Paro. Despite the obvious benefits, many participants believe that AI isn’t ready to fully implement into their business just yet.