The Evolving Role of the CAO
As automation and artificial intelligence (AI) reshape the finance landscape, traditional roles within accounting departments are undergoing transformation. CFOs are increasingly stepping into strategic and external-facing responsibilities, necessitating a shift in duties for chief accounting officers (CAOs). This change has elevated CAOs to more prominent roles in executive decision-making.
Historically focused on cost control and compliance, CAOs are now managing tactical and operational aspects once overseen by CFOs. These responsibilities include implementing new accounting standards, managing risk, ESG reporting, and integrating IT systems. This shift is enabling CFOs to act as co-pilots to CEOs, focusing on long-term value creation through strategy and forecasting.
Technology as a Catalyst
Technological advancements, particularly in AI and robotic process automation, have accelerated this evolution. Processes like account reconciliation, anomaly detection, and fraud identification are increasingly automated. As Tom Hood, executive vice president of Business Growth & Engagement at the Association of International Certified Professional Accountants, notes, “Transaction-layer processes are being automated. AI is accelerating judgment-based tasks, transforming entry-level roles and responsibilities.”
This automation frees CAOs from manual tasks, allowing them to focus on interpreting financial signals and advising on business strategy. Christopher Gullotta, senior vice president and chief accountant at Kyndryl, reinforces this point, emphasizing the shift from data processors to strategic partners in business decisions.
Leadership Perspectives
Rachael Crump, CAO at Insight, describes the shift as a “trickle-down” effect. As CAOs take on strategic roles, controllers—who typically report to CAOs—are now absorbing more technical responsibilities and risk management duties. According to the 2024 EY Global DNA of the Financial Controller Survey, 86% of controllers anticipate a significant evolution in their roles over the next five years.
Jennifer McCalman, CAO at The Hershey Co., adds a cautious voice. While she acknowledges AI’s potential, she warns that it’s not yet mature enough for complete reliance in accounting. “We will end up using AI—it’s inevitable,” McCalman said. “But it must be auditable and accurate before widespread adoption.”
Blending Strategy with Financial Planning
The boundary between financial reporting and strategic planning is blurring. CAOs are now expected to integrate financial planning and analysis (FP&A) functions into their roles. Hood emphasizes this convergence, noting that CAOs must enhance their analytics and forecasting capabilities to remain effective.
Crump echoes this sentiment, explaining how her responsibilities at Insight have expanded beyond compliance to include budgeting, five-year planning, and investor relations. “The financial statement and the integrated audit are always going to be top of my list,” she said, “but it’s more about how I use that knowledge strategically.”
Process Optimization and System Integration
At Hershey, McCalman has led significant process improvements, including a move from SAP ECC to SAP S/4HANA. This shift has streamlined operations, reduced manual journal entries by 60%, and enhanced reporting capabilities. Her goal is to eliminate manual entries entirely, underscoring the importance of process control in modern finance functions.
“Process has become much more important,” McCalman explained. “Understanding and controlling a process shapes what your people need to do. It’s been one of the biggest shifts I’ve seen.”
Her team is now embedded in business operations, from procurement to mergers and acquisitions, ensuring that accounting considerations are integrated from the outset.
From Back Office to Strategic Adviser
Gullotta at Kyndryl shares a similar experience. His team is increasingly involved at the front end of business deals, providing financial insights before contracts are signed or strategic shifts are implemented. By positioning his team as data stewards rather than processors, he ensures quality and relevance in real-time decision-making.
“Curiosity is key,” Gullotta said. “Understanding what business partners are doing and how your work contributes to outcomes is essential. It’s about shifting from reaction to anticipation.”
Key Skills for Future CAOs
As the role of CAOs expands, several skill sets are becoming essential:
- Analytical thinking: Scenario planning and predictive analytics are increasingly vital.
- Technological proficiency: A deep understanding of AI, ERP systems, and automation tools is crucial.
- Business acumen: CAOs must engage in strategy, M&A discussions, and investor relations.
- Process and risk management: Designing efficient processes with embedded controls minimizes errors.
- Communication and curiosity: Translating financial data across departments fosters alignment.
- Adaptability: Leading transformation initiatives and embracing continuous change are now core responsibilities.
McCalman believes that embracing change is what keeps CAOs relevant. “Leaning into transformation rather than resisting it is what brings you to the table and gets people to listen.”
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.