CFOs in the property sector are facing unprecedented challenges as they work to drive growth while maintaining financial control. From rising operational costs and unpredictable cash flows to increasing regulatory pressures, property management is an inherently complex space. According to research from our recent CFO Mindset report, 76% of CFOs feel they don’t have full control over their organisation's financial health. This lack of oversight, coupled with the rapid pace of market changes, is putting immense pressure on CFOs, forcing many to seek better tools to regain control.
With 38% of CFOs highlighting the importance of better financial technology, the need for integrated, real-time financial solutions is clear. CFOs must move from reactive financial management to a more proactive, data-driven approach, one that can provide both a comprehensive overview of finances and granular, real-time insights to stay ahead of the curve.
The complexities of portfolio management: Juggling multiple entities and inconsistent cash flows
Property portfolio management is complex. For many CFOs in the sector, this involves overseeing multiple entities – Special Purpose Vehicles (SPVs), Special Purpose Entities (SPEs), and real estate investment trusts (REITs) – while keeping track of fluctuating revenue streams and unpredictable costs. Managing these complexities means CFOs must reconcile financials across different companies and entities, often in different regions or markets, all with varying financial reporting requirements.
Cash flow volatility is another ongoing challenge. Rent collection, service charges, maintenance costs, and the need to provision for vacancies all impact financial stability. Rising interest rates, inflation, and increasing regulatory complexity make this even more difficult to manage. Without the ability to consolidate financial data seamlessly and access it in real-time, it becomes increasingly difficult for CFOs to maintain control over their financial position and plan strategically for growth.
Why real-time data and financial visibility are critical to success
At the heart of these challenges lies the need for real-time visibility into financial data. To make informed decisions, CFOs need immediate access to consolidated data across multiple entities, properties, and portfolios. 38% of CFOs in our research agree that having access to better financial technology is key to improving oversight, while 35% believe artificial intelligence (AI) could be a game-changer in streamlining decision-making.
By moving to an automated, cloud-based solution that integrates with existing property management systems, CFOs can gain quicker, more accurate insights, enabling faster decision-making in a volatile market. Real-time visibility ensures that CFOs are not just reacting to market changes but can proactively adjust strategies, reduce risks, and drive long-term growth.
The financial management solution: Automation, scalability, and quick implementation
So, what do CFOs need from their financial management software to overcome these hurdles?
1. Multi-entity management: Managing multiple entities within a single platform is essential for property sector CFOs. Whether overseeing SPVs, REITs, or other property-related structures, the software must simplify financial consolidation and offer a complete, integrated view of financial health across entities. This ability ensures smoother decision-making and less time spent juggling systems.
2. Automation for efficiency: Reducing manual processes is paramount. Automation eliminates human error, cuts down on time spent on routine tasks (like VAT reporting, fixed asset management, and invoice processing), and frees up the finance team to focus on more strategic initiatives.
3. Cloud-based scalability: As businesses scale, CFOs need software that can grow with them. Cloud-based financial systems provide flexibility, allowing CFOs to manage finances from anywhere, at any time, while seamlessly integrating with other property management systems.
4. Advanced reporting and business intelligence: CFOs are under pressure to provide accurate financial insights to stakeholders. A platform with robust reporting and business intelligence tools can generate detailed, real-time financial reports—whether for internal review or to update investors. This visibility supports better decision-making and investor confidence.
5. Seamless integration: CFOs are already using a variety of systems for project management, CRM, or property management. Financial management software must integrate with these tools to ensure that data flows seamlessly between platforms. This provides CFOs with a comprehensive view of financial performance across all business areas.
Speed of implementation and value in ERP systems
One of the greatest challenges CFOs face when adopting new financial management software is the time required for implementation. Traditional ERP systems, especially for mid-sized businesses, can take months or even years to fully deploy, causing significant disruption to ongoing operations. As businesses scale, this lag can delay the realisation of the system's full value.
In fact, Gartner reports that 70% of ERP functionalities go unused and fail to meet expectations. This statistic highlights a major issue for businesses: investing in an ERP system with complex, unnecessary features that aren't needed. CFOs must focus on solutions that provide only the features relevant to their operations—avoiding the bloat that often comes with large ERP implementations.
The key to a successful financial management solution is a quick implementation, so businesses can see the benefits sooner. With cloud-based systems like AccountsIQ, deployment can be done in a fraction of the time compared to traditional ERPs. This rapid implementation not only reduces the risk of downtime but also helps CFOs take control of their financial management sooner, without having to wait months or years to unlock key features.
Additionally, focusing on essential functionalities ensures that businesses can streamline operations and accelerate growth, without being weighed down by unnecessary features that might not align with their current needs.
Strategic cost management and achieving growth in an uncertain market
The property sector is facing a unique set of challenges, but CFOs can leverage technology to not only manage costs more effectively but also position the business for growth. Automation of routine financial tasks frees up valuable resources, allowing CFOs and their teams to focus on more impactful activities like strategic planning, scenario forecasting, and financial analysis.
Using advanced business intelligence features, CFOs can model different scenarios, helping to foresee potential risks before they materialise. This foresight allows businesses to react proactively, whether that’s by adjusting pricing models, refinancing debt, or identifying new investment opportunities.
Additionally, a consolidated financial view across multiple entities enables CFOs to track performance in real-time, ensuring that they can adjust quickly and decisively to market shifts. In an uncertain economic climate, this flexibility is crucial to maintaining financial stability and achieving sustainable growth.
The smarter way forward for property sector CFOs
Property sector CFOs need tools that allow them to manage the present but also enable them to scale and grow the business in the future. With powerful reporting capabilities, seamless multi-entity management, and automation of routine financial processes, AccountsIQ enables CFOs to operate more efficiently, reduce operational costs and position their businesses for future growth.
Want to learn more about how technology is reshaping the role of today’s CFOs?
Download the full CFO Mindset Report to gain deeper insights into the evolving role of finance leaders and discover how technology is helping property sector CFOs stay ahead in a rapidly changing market.
