CFOs See Silver Linings to Coronavirus Crisis

The coronavirus pandemic has spurred unpredicted enhancements at U.S. companies and pushed CFOs to reprioritize

The coronavirus pandemic has spurred unpredicted enhancements at U.S. companies and pushed CFOs to reprioritize engineering expense, in accordance to a Grant Thornton study.

The accounting company reported that more than sixty% of CFOs cited improved versatile and remote work environments as an upside of the pandemic, with forty% also noting improved collaboration, improved organization procedures, and an capacity to far better concentration on technique.

Amid the change to remote work, sixty one% of finance chiefs indicated that they expect to maximize expense in cybersecurity in the following yr. When requested to identify the three major troubles dealing with their companies, forty six% indicated cybersecurity threats, forty six% chose engineering updates, and thirty% mentioned remote workforce troubles.

Fifty-three p.c of respondents are prioritizing extended-term foundational engineering infrastructure expense around engineering that addresses instant organization needs (forty seven%).

“A yr in the past, CFOs were being scrambling just to survive, but sometimes a disaster can accelerate good improve,” Chris Schenkenberg, regional tax organization strains nationwide taking care of spouse at Grant Thornton, mentioned in a news release.

The study also revealed that several CFOs plan to reduce travel and authentic estate expenses in the coming yr and beyond and more than fifty percent plan to maximize expense in their companies’ DE&I (variety, equity, and inclusion) and ESG (environmental, social, and governance) tactics.

CFOs skewed destructive on taxes, with 39% declaring the Biden administration’s tax options will negatively impression their organizations. Amongst companies with more than $1 billion in earnings, fifty five% expect tax changes to have a destructive impression, even though only 29% of companies with revenues amongst $a hundred and one and $500 million felt the identical.

Indicating the distinctive function acquisition firm boom of 2020 will continue on, eighty four% of non-public firm respondents mentioned SPACs have increased their curiosity in heading public. When requested whether or not a SPAC or a regular IPO would be their option, respondents were being just about similarly break up, with 49% picking out a SPAC and fifty one% picking out an IPO.

Much more than two-thirds of CFOs, nevertheless, expect increased SPAC regulation from the Securities and Exchange Fee in 2021 even though fifty five% feel SPACs depart new public companies overvalued.

coronavirus, ESG, Grant Thornton, remote work, SPACs, study, Know-how