The world of finance is constantly evolving, and this year is no exception. This year brings fresh challenges for CFOs and finance teams, specifically around navigating economic uncertainty and accelerating digital transformation initiatives. Continue reading to learn about the top challenges CFOs are facing in 2025, as well as the steps leaders should take to prepare their organizations and accounts payable teams for success.
Key takeaways
- Economic uncertainty and inflation remain top concerns for CFOs in 2025
- Digital transformation has become essential for finance departments, and it is no longer an option
- Talent shortages in accounting continue to challenge finance teams
- Strategic execution depends on having a clear understanding of financial data and processes
- AP automation provides solutions that address several challenges faced by CFOs at the same time
The state of finance in 2025
The world of finance is always changing, with new challenges and opportunities popping up all the time. As the global economy continues to face uncertainty, business leaders are focused on building resilience while pursuing growth opportunities. Geopolitical tensions, supply chain disruptions, and economic fluctuations continue to create a complex operating environment.
These circumstances have made the CFO role increasingly strategic, requiring diverse skills — financial expertise, strategic decision-making, and risk and stakeholder management. With ongoing innovations and financial transformations, CFOs must leverage financial technology to streamline processes, reduce inefficiencies, and enhance their company’s overall strategy.
The increasing demand for precise financial data has made accuracy and timeliness more important than ever. According to the 9th Annual State of AP Report, finance organizations want and need automation to make their back office operations more effective, with 51% using automation specifically to reduce inefficiencies and costs caused by manual processes. Today, CFOs must firmly understand the latest tools and best practices to optimize their financial management strategies and ensure that decisions are based on timely, accurate data.
Top challenges for CFOs in 2025
CFOs face a complex set of challenges that require strategic thinking and innovative solutions. Understanding these challenges is the first step toward developing effective strategies to navigate them successfully.
Let’s explore the six major challenges confronting CFOs in 2025:
- Economic uncertainty – Dealing with volatile markets and unpredictable economic conditions
- Digital transformation – Leveraging technology to drive efficiency and strategic insights
- Recession concerns – Preparing for potential economic downturns and their implications
- Strategy execution – Translating financial vision into actionable business outcomes
- Talent acquisition and retention – Addressing the growing shortage of finance professionals
- Sustainability efforts – Meeting new environment, social, and governance (ESG) reporting requirements and what stakeholders expect
- Interest rate fluctuations – Developing strategies to mitigate the impact of changing borrowing costs
- Supply chain disruptions – Building resilience against ongoing procurement and logistics challenges
Let’s examine each of these challenges in detail and explore how forward-thinking CFOs are addressing them.
1. Economic uncertainty
Economic uncertainty remains a significant concern for CFOs this year. While inflation has moderated from its peak, ongoing geopolitical tensions and potential policy shifts continue to create volatility in markets. According to Gartner’s 2025 Finance Executive Priorities Survey, data, metrics, and analytics were identified as the top priority for CFOs, followed by efficient growth.
In this environment, finance leaders must embrace a more agile and flexible approach to work. CFOs need to develop sophisticated scenario planning capabilities that go beyond traditional forecasting, leveraging advanced financial accounting software for real-time data analysis and quick, strategic pivots.
AP teams and finance leaders face the challenge of deciding which vendors to pay, and when. This can be daunting without the right tools in place. AP automation solutions simplify this process by empowering teams to make better decisions through identifying strategic vendors and providing greater visibility into the overall AP process.
2. Digital transformation
Digital transformation is no longer optional but a necessity for finance leaders. According to the State of AP Report, four in five finance professionals believe their organization requires more automation to be effective, but only one in five say they have completely automated their AP process.
The role of finance is becoming increasingly strategic, requiring CFOs to lead a digital-first, agile organization. This degree of evolution is not easy. Teams must carefully plan their digital transformation approach by reimagining manual, paper-based workflows and retraining their workforce to assume higher-value responsibilities.
With advanced analytics and artificial intelligence revolutionizing decision-making processes, finance leaders are well-positioned to provide next-level insights and inform strategic decisions across their organizations. CFOs who successfully integrate cutting-edge solutions can transform their finance departments from traditional accounting centers to strategic innovation hubs.
3. Recession
Deloitte’s economic analysis indicates that the new tariffs implemented in 2025 could significantly impact global trade flows and supply chains, creating additional economic headwinds for businesses to navigate as they manage costs and pricing strategies.
To prepare for a potential recession, CFOs are focusing on managing operating expenses, controlling headcount, reprioritizing or deferring capital expenditures, and conserving or strengthening liquidity. CFOs must also determine ways to make their operations more efficient so teams can do more with less. As a result, many finance departments are embracing automation to fill this gap, with a special focus on accounts payable as the top priority. AP is a great start for finance teams looking to automate the back office because it helps teams to focus on what they can control, proactively communicate with suppliers, and establish accurate cash forecasting. All of these benefits help protect teams against long-term implications of a recession, including: damaged supplier relationships, cash flow problems, and diminished sales and profits.
4. Executing on strategy
Finance teams are being asked to do more than ever before. This degree of evolution is not easy. Teams must carefully plan their digital transformation approach by reimagining manual, paper-based workflows and retraining their workforce to assume higher-value responsibilities in their day-to-day tasks. With this, CFOs are concerned about realizing the projected value of these initiatives and properly guiding their teams into the future. Done right, they can unlock an incredible degree of success for their team and overall business. Done wrong, they could lose their job.
In order to properly execute their 2025 strategy, teams must have a clear understanding of their current standings. This is impossible when AP teams are consumed with menial tasks like chasing invoice approvals and answering a flood of vendor inquiries. The current economic landscape adds even more tasks to AP’s plate: recalibrating cash forecasting, reviewing pricing and margins, optimizing the supply chain, finding new suppliers, managing existing vendor relationships, as well as implementing cost-cutting initiatives with finance, operations, HR and others. In order for teams to deliver on the above, they must also ensure their financial data is accurate and up to date. This provides the clearest view of their financial position and ultimately guides decision-making on what matters most.
5. Talent acquisition and retention
One of the major hurdles for CFOs currently is figuring out how to acquire and retain great talent. According to MineralTree’s State of AP Report, finance leaders are concerned about employee retention and recruitment, with a significant shift back to office work occurring despite previous trends toward remote and hybrid arrangements.
The tech scene is changing fast, leaving a big gap in finance leadership. Today’s CFOs need to be a mix of finance experts, tech-savvy strategists, and creative thinkers who can drive organization-wide innovation. This calls for a multi-faceted approach to talent development and recruitment to overcome persistent hiring challenges.
In fact, the hiring problems in accounting continue to intensify. According to an article in Forbes, 83% of senior leaders reported an accounting talent shortage in 2024, up from 70% in 2022. This dilemma, along with budget constraints, forces finance departments to rely less on adding headcount and explore other methods to achieve their 2025 output goals without burning out existing team members. As a result, many teams are turning to AP automation to help bridge these gaps and enable their existing teams to accomplish more with less.
To tackle these challenges, companies need to focus on continuous learning programs, set up training opportunities that involve different departments, and create talent strategies that help them attract and keep finance professionals with diverse skills who can handle the complex economic landscape of 2025.
6. Sustainability initiatives
New reporting requirements pressure companies to be more transparent about business impacts from ESG issues. CFOs are increasingly focused on meeting these requirements and managing this data from a central, secure source.
Sustainability is starting to shift towards the finance team because they have the know-how to create the necessary reports. This helps them connect climate risk management with bigger strategic choices and how they allocate funds, which in turn strengthens the company’s resilience.
Oracle notes that regulatory bodies in the EU have introduced new compliance requirements around ESG issues, with similar rules being considered in other regions. ESG planning and reporting solutions must integrate accurate data from across the company to produce narrative reports that satisfy regulators’ requirements.
7. Interest rate fluctuations
Fluctuating interest rates are posing major challenges for financial planning in 2025. After years of fluctuations, CFOs need to develop sophisticated hedging strategies and maintain exceptional financial flexibility to mitigate potential risks. This means not just reactive measures, but proactive financial engineering that anticipates and neutralizes potential economic disruptions.
Higher interest rates affect borrowing costs and capital expenditure decisions, so CFOs must carefully evaluate the timing and structure of their financing activities. According to the State of AP Report, finance organizations are increasingly turning to automation to improve cash flow visibility and management, which becomes even more critical in a high-interest-rate environment.
AP automation provides the real-time insights needed to optimize payment timing, take advantage of early payment discounts, and maintain strong vendor relationships—all essential elements of navigating interest rate challenges while preserving working capital.
8. Supply chain disruptions
The supply chain challenges that emerged during the pandemic have evolved rather than disappeared. This year CFOs are dealing with ongoing disruptions from geopolitical tensions, new tariffs, labor shortages, and changing consumer demands. These disruptions directly impact inventory levels, procurement costs, and ultimately, the bottom line.
For finance leaders, this means working closely with operations and procurement teams to develop more resilient supply chain strategies. AP automation plays a crucial role here by providing greater visibility into vendor relationships, payment histories, and spending patterns. This visibility enables CFOs to identify critical suppliers, negotiate better terms, and ensure timely payments to maintain supply chain continuity.
MineralTree’s research shows that organizations with automated AP processes are better positioned to adapt to supply chain disruptions because they can quickly adjust payment priorities, maintain stronger vendor relationships, and make more informed decisions about cash allocation during periods of uncertainty.
How CFOs can prepare for challenges in 2025
CFOs need to take a proactive approach to future-proof their finance teams this year. This includes investing in the right technology and automation tools, using accurate financial data, and creating a company culture that reduces turnover and enables upskilling.
More specifically, CFOs should:
- Invest in the right technology and AP automation tools to minimize process inefficiencies and free up staff time to focus on high-value projects. This can help streamline their operations and increase efficiency.
- Ensure financial data is accurate and use it to inform their company’s strategy. This can provide a clearer view of their financial position and help guide decision-making.
- Create a company culture that attracts and retains great staff. This will address the talent acquisition challenges and ensure that teams have the right people in place to meet their objectives.
- Upskill staff to be as strategic as possible. This helps ensure departments are prepared to take on new responsibilities and meet the evolving needs of their organization.
Final thoughts
Organizations that navigate economic uncertainty by investing in automation and digital transformation are better positioned to thrive in challenging times. The most successful CFOs in 2025 will be those who balance cost management with strategic technology investments that drive long-term efficiency and growth.
Though 2025 is a challenging year for CFOs, finance leaders can achieve success with a proactive and strategic approach to combat the uncertainty that lies ahead. The right technology, accurate financial data, and a strong company culture are all key for future-proofing organizations. This is where AP automation platforms like MineralTree’s TotalAP come into play by supporting 2025 priorities via one unified workflow.
MineralTree can help CFOs meet challenges by providing comprehensive AP automation solutions that streamline the end-to-end accounts payable process and reduce the burden on the finance team. With MineralTree, CFOs can focus on more strategic initiatives, attract and retain top talent, and realize the value of their efforts. You can also request a free demo today to see just what MineralTree can do for you.
CFO Challenges in 2025: FAQs
Tl;dr? If you’re short on time, the frequently asked questions below provide a quick snapshot of what you need to know about CFO challenges in 2025.
What are the top financial concerns for CFOs in 2025?
Economic uncertainty, interest rate fluctuations, and potential recession risks top the list of financial concerns for CFOs in 2025. Many finance leaders are focusing on strengthening cash flow management, optimizing working capital, and implementing more sophisticated forecasting tools to navigate these challenges effectively.
How can CFOs address the accounting talent shortage?
CFOs can tackle the accounting talent shortage through a multi-pronged approach: implementing AP automation to reduce manual workloads, creating professional development opportunities for existing staff, offering flexible work arrangements, and developing competitive compensation packages. Automation allows finance teams to accomplish more with fewer resources while enabling staff to focus on more strategic, fulfilling work.
Why is AP automation a priority for finance departments?
Automating accounts payable is now a top priority because it solves several problems at once. It improves efficiency, reduces costs, enhances visibility into cash flow, strengthens vendor relationships, and helps mitigate fraud risks. According to MineralTree’s research, organizations that implement AP automation can process more invoices with the same team size while gaining valuable insights for strategic decision-making.
How are CFOs balancing cost-cutting with strategic investments?
Forward-thinking CFOs are taking a targeted approach to cost management while protecting investments in digital transformation and automation. Rather than implementing across-the-board cuts, they’re using data analytics to identify specific areas for efficiency improvements. Many are finding that investments in AP automation actually generate returns through early payment discounts, reduced processing costs, and better resource allocation.
What role do CFOs play in sustainability initiatives?
CFOs are increasingly taking leadership roles in sustainability efforts, particularly as ESG reporting requirements become more stringent. Finance leaders are uniquely positioned to quantify environmental impacts, assess risks, evaluate sustainable investment opportunities, and ensure accurate reporting. The finance team is good at analyzing data and managing information, which makes them well-suited to help make real progress in sustainability efforts.
