INSTITUTE of Chartered Accountants of Zimbabwe member Edmore Matanganyidze has urged businesses to focus more on sustainability instead of solely concentrating on regulatory and compliance issues.
In a commentary titled, From Compliance to Catalyst: Transforming Zimbabwe’s Finance and Accounting Function for Strategic Impact, Matanganyidze argued that most local companies limit themselves to traditional finance and accounting systems.
This, he said, hindered their ability to drive strategic growth and transformation; hence the need for businesses to adopt new strategies to build reputable companies.
“In many Zimbabwean companies, the finance function has traditionally focused on a narrow range of activities, primarily on bookkeeping, financial reporting and compliance,” Matanganyidze said in his commentary seen by NewsDay Business.
“This approach, often driven by regulatory requirements and resource constraints, has limited the function’s ability to support strategic business growth and transformation.
“While finance departments generally ensure statutory compliance with Zimra [Zimbabwe Revenue Authority], NSSA [National Social Security Authority], IFRS [International Financial Reporting Standards] and company law requirements, they frequently fall short in delivering forward-looking insights and value-adding services.”
He added that his experience in over 20 different financial firms across the world had made him realise the shortcomings that most Zimbabwean companies faced.
These shortcomings include the emphasis on historical reporting, a compliance mindset and underdeveloped risk management.
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“Finance leadership and teams are often skewed towards accounting qualifications (CA, ACCA, CIMA), with little representation from other finance strategists (for example, CFA, economists, mathematicians, statisticians, or business administration),” Matanganyidze said.
“This lack of diversity in skills can hinder broader business understanding and innovation. Accountants are one part of a big finance team. A strong finance team should have a mix of all finance professionals.”
He said in an increasingly competitive and fast-changing business environment, the finance function had evolved far beyond its traditional role of managing budgets and producing financial reports.
“Today, a high-performing finance function is a strategic enabler of business success, delivering insights, driving value creation, managing risks and ensuring organisational agility,” Matanganyidze said.
“Companies that invest in building robust finance capabilities often outperform peers in profitability, resilience and growth. In summary, a high-performing finance function is essential to the long-term success of any organisation.”
He said businesses needed to go beyond bookkeeping to become a driver of strategic value, operational excellence and financial sustainability.
“As business complexity increases, so does the importance of building finance teams with the right skills, technologies and leadership capabilities,” Matanganyidze said.
“Companies that recognise this and empower their finance functions will be more adept at succeeding in today’s dynamic market environment.”
He said modern finance teams contributed to efficiency not just in the back office, but across all business functions.
“By identifying cost-saving opportunities, improving working capital management and streamlining processes through automation and digital tools, finance enhances productivity and reduces waste,” Matanganyidze said.
“These improvements free up capital that can be reinvested in innovation and growth initiatives. Automation of routine tasks such as accounts payable, payroll, and reconciliations allows finance professionals to focus on more value-adding activities like forecasting and strategic planning.”
He also called for the adoption of advanced technologies such as artificial intelligence.
