- February 14, 2019
- Posted by: Jelena Subasic
- Category: Biotechnology, Intacct
Join Dean Dorton on March 19th @ 2 pm EST to learn how life science and biotech financial leaders can be strategic superheroes with cloud accounting.
CFOs in the life sciences industry face significant challenges. One of the most difficult is finding the time to actually function as a CFO, to be strategic rather than tactical. An EY DNA of the CFO study found that 66% of life sciences CFOs are unable to focus on strategic priorities because they must spend time on compliance, controls, and costs.
Spread too thin?
More than their global counterparts, CFOs in life sciences are taking on operational responsibilities outside of their core finance role (64% vs. 74%). The EY study pointed out several reasons for this. “Overall, CFOs are well suited to challenge long-held assumptions that encourage bureaucratic practices. They can provide the bottom line perspective that ensures resources are deployed to areas where they can generate the most value. They also have proven experience in delivering against cost and operational efficiency targets.”
While many CFOs appreciate the ability to drive innovation and have a greater impact on the overall organization, there are downsides. CFOs who are heavily involved in operations lose some of the impartiality that serves them well as a finance leader. Then there’s the time factor—nearly half of the life sciences CFOs surveyed say that increased operational responsibilities make it hard to be strategic.
Under the regulatory microscope
Life sciences CFOs must walk a tightrope between regulators and investors as well as other stakeholders. Sixty-one percent of respondents in the EY survey believe that in the future, finance must improve its regulatory knowledge in order to stay up-to-date with the “changing and uncertain” regulatory landscape. Ethics and economics play a role, too, as factors such as the loss of patent protection “increase[s] the pressure to maintain market share and may cause employees to engage in more aggressive tactics to hold their company’s market position,” the study noted.
Now, more than ever, life sciences CFOs are tasked with successful financial management and regulatory compliance for their organization. To achieve these goals and be more strategic, these CFOs need a financial management system such as Sage Intacct that enables them to increase their financial efficiency by:
- Accurately tracking costs with project accounting.
- Automating batch/lot tracking to ensure R&D product traceability.
- Unifying multiple systems to support flexible reporting.
- Streamlining business processes to ensure compliance.
- Using cloud technology to keep up with the scaling business.
If you’re a life science/biotech financial leader who wants to seize opportunities for personal and company growth, join the Dean Dorton financial technology experts for our webinar on Tuesday, March 19th, at 2 p.m. EST: 5 Ways Biotechs Can Increase Financial Efficiency.