REWARD
The rise of the fractional CFO:
Daniel Heathcote, Senior Content Writer, Modulr, highlights the whitepaper which discusses how updating payroll payment methods can grow your business and put you ahead of the competition
T he role of accounting professionals is always undergoing change. Once confined to compliance and transactional work, accountants and bookkeepers in payroll are now uniquely positioned to offer deeper strategic insight for their clients. With pressure mounting on businesses every year, payroll affects real-time financial visibility and cashflow management. Those in payroll positions have a close working relationship with their clients’ data and could provide proactive advisory services to help their clients navigate financial challenges. To better understand the changing role of accountants and bookkeepers, Modulr surveyed 250 senior leaders in UK accounting and bookkeeping firms. The findings reveal a clear shift, where businesses are demanding more than compliance; they expect strategic financial insight and real-time cash flow management to support growth. These changes are driving the rise of the fractional Chief Financial Officer (CFO) – a role which enables accounting professionals to provide high-value financial strategy, without the need for businesses to hire a full-time CFO. The shift is already happening, and the data proves it. In the past five years: l investment and business strategy advisory services have increased by 75% l forecasting services by 73% l payroll-related services by 70%. This isn’t just a passing trend; it’s a direct response to client demand for more comprehensive financial support.
Accounting professionals are uniquely positioned to capitalise on this shift. By expanding their services beyond payroll processing to include financial forecasting, cash flow analysis and real-time payment solutions, they can strengthen client relationships, improve retention and unlock new revenue streams. However, despite this opportunity, a major operational challenge is holding many firms back from taking the next step. The payment problem which stalls growth For many firms, outdated payment infrastructure is the biggest barrier to evolving their services. Inefficient systems and manual processes prevent accounting professionals from delivering the strategic, technology-driven services clients expect. Research from our latest whitepaper highlights the extent of the issue. More than 34% of accounting professionals struggle with inflexible payment infrastructure, preventing them from scaling efficiently. Another 30% find manual processes excessively time-consuming, eating into the time they could be spending on value- added work. A further 28% cite a lack of transparency in payment workflows, making it difficult to provide the level of financial insight modern businesses require. These inefficiencies have knock-on effects beyond payroll processing. High costs (27%) and system complexity (21%) not only impact profitability but also create unnecessary friction in client relationships.
Additionally, 23% of firms report cumbersome payment processes are directly contributing to employee dissatisfaction and retention issues, a critical problem in an industry where skilled professionals are in high demand. With accounting professionals facing increasing pressure to deliver more strategic services, these inefficiencies actively prevent firms from modernising and staying competitive. “For many firms, outdated payment infrastructure is the biggest barrier to evolving their services” The transformational impact of modern payment solutions The good news is that accounting professionals are ready for change. While only 27% of firms currently use modern payment systems, 67% say they’re open to adopting one. The appetite is there, and the benefits of automation and modernisation are undeniable. Automation alone could free up over three hours per week for almost half (46%) of firms currently bogged down by reconciliation, payment tracking and
| Professional in Payroll, Pensions and Reward | April 2025 | Issue 109 34
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