PRIVATELY OWNED. FUTURE READY: ACTIONABLE TIPS FOR CFOs, FDs & SENIOR LEADERS

Our London superhub recently hosted a high-energy breakfast event for CFOs, Finance Directors and senior leaders from Privately Owned businesses.

With the sheer volume of regulatory, sustainability and technological change these leaders are facing right now, cutting through the noise became a key theme.

But, as our expert speakers laid out, with the right preparation, these changes present opportunities, not obstacles.

Below, you’ll find a summary of the morning’s most valuable nuggets, alongside practical takeaways for leaders in any Privately Owned business.

MAKING SENSE OF ACCOUNTING REFORM

Cat Kelly, Partner & Head of Retail at CP, kicked things off with an Accounting Standards update and a pragmatic message: the regulatory world is changing fast for Privately Owned businesses, and organisations that fail to prepare early will feel the pressure.

Accounts Filing Reform (Effective for all filings from 1 April 2027

Companies House have introduced a wave of reforms over recent years, and soon, there will be more significant changes.

The Accounts Filing Reform, effective for all filings from 1 April 2027, will see Companies House:

• Mandate software-only filing.
• Limit the frequency with which a company can change its accounting reference period – a move aimed at preventing “deadline stretching.”
• Require enhanced audit exemption statements.

Facing pressure from the business community about the red-tape and increased costs to small companies, the Government has paused with pushing ahead with the requirements for small companies to

• Remove abridged accounts for small and micro entities.
• Require P&L accounts and director reports from every company.

Whether this roll-back is a complete U-turn or a stay of execution is unclear, but has been welcomed by small businesses as this shift will fundamentally change the visibility of financial results for Privately Owned companies. As Cat noted, some KPIs that have previously remained internal may now become public in the future, requiring careful thought around messaging and disclosure.

FRS 102: A Major Rewrite

The updated FRS 102 standard represents a substantial overhaul:

• Lease accounting more closely aligned with IFRS 16.
• Significant changes to revenue recognition.
• Expanded disclosures across the board.
• Updates around fair value measurement, supplier finance, business combinations, uncertain tax treatments, and more.

With the updated standard now substantially longer and more detailed than its predecessor, the complexity is real. Transition periods begin for accounting periods starting on or after 1 January 2026, with fully transitioned financial statements required from 31 December 2026.

Key Implications for Privately Owned Businesses

Cat highlighted three particularly impactful areas:

1. EBITDA inflation:
   Lease accounting changes could significantly increase EBITDA – beneficial for some, problematic for others depending on covenants, bonus schemes, or investor expectations.
2. Revenue recognition changes:
   Even businesses anticipating minimal impact will still need to document their assessment – auditors will expect clear evidence of review, not assumptions.
3. Mandatory disclosure of management KPIs:
   Businesses must prepare for greater external scrutiny of internal metrics.

When Cat asked the room who felt “all over it” regarding the changes, only a handful of hands were raised. Most had barely started – reinforcing her most important message:

Get ahead of the changes now to avoid operational and reputational pain later. Start transition planning, assess covenants and bonus impacts, and prepare calculations and disclosures long before the deadlines hit.

SUSTAINABILITY & SECR: CUTTING THROUGH THE NOISE & THE ACRONYMS

Laura Bevan, Assurance Director at CP’s session focused on another noisy environment: sustainability reporting.

With rising energy costs, tightening global regulation and rapidly increasing scrutiny across supply chains, she stressed that sustainability is no longer a nice-to-have narrative – it’s directly tied to cost, risk and financial performance.

The Sustainability Status Quo

A few realities underpinned that urgency:

• In February 2026, global temperatures briefly reached 1.4°C above pre‑industrial levels – dangerously close to the 1.5°C threshold where global policy and market behaviour could change dramatically.
• Wind and solar adoption are accelerating across Europe.
• Fuel and energy costs remain a major driver of business expenses.

Why Privately Owned Businesses Struggle With Emissions Data

Scope 1, 2, and especially 3 emissions reporting remains challenging due to:

• Fragmented, inconsistent or poor-quality data.
• Unclear ownership of sustainability internally.
• Confusion about scope definitions.
• Missing or outdated emissions factors (especially for global operations).
• Underestimating the resources required for sustainability reporting.
• Gaps between SECR expectations and the feedback some audit teams are currently providing.

For Privately Owned businesses with leaner teams and less formalised data processes, these challenges can feel overwhelming.

Laura’s Advice: Ignore the Noise. Focus on the Data

There are countless frameworks, acronyms and methodologies in the sustainability reporting world – but leaders should focus on what actually matters.

As Laura put it, “Whatever happens next, all roads lead back to the data”:

• Where are your biggest costs?
• Where are your biggest impacts?
• What data do your supply chains need from you?
• Is your emissions data accurate?
• How will mandatory reporting evolve?

ISSB S1 & S2: A Global Turning Point

ISSB’s new globally recognised standards have now been finalised:

• The FCA is consulting on adopting them for listed companies from 2027.
• Voluntary adoption is available now for private businesses.
• A broader rollout to large private firms will likely follow listed implementation.

This means Privately Owned businesses should expect:

• Increased requests for Scope 1 and 2 data from customers (because your emissions are their Scope 3).
• Sustainability requirements appearing in tender processes.
• Pressure from lenders and insurers to evidence climate-related risk management.

Laura’s key takeaway?

Futureproofing comes down to one thing: clean, reliable sustainability data. Amid the noise, businesses that invest early in data quality and ownership will be best placed for regulatory change, cost management, and supply chain competitiveness.

AI FOR THE MODERN CFO

Last but never least, Mark Lockton, Partner at Cooper Parry Digital’s session shifted the focus to technology. Specifically, the real-world state of AI adoption.

When he asked the room whether anyone felt they were using AI in a confident or expansive way, nobody raised a hand. When he asked who was using it at all, nearly everyone did.

This contrast underscored his central point: there is enormous talk about AI, but very little meaningful execution.

Why AI Feels Hard for Privately Owned Businesses

Daily operational friction often prevents leaders from experiencing AI’s transformative potential. Mark listed some of the most common blockers:

• Heavy internal reporting requirements.
• Multiple versions of “the truth” across departments.
• Complicated approval and sign‑off processes.
• Tech systems that don’t integrate.
• Manual reconciliation between platforms.

Individually, each issue looks small. Combined, they create significant productivity drag.

Digital Transformation Didn’t Work – AI Can

Many businesses layered new tools on top of outdated processes, which led to:

• Tool sprawl.
• Inconsistent data.
• Reliance on spreadsheets to “bridge gaps.”

AI creates an opportunity to break this cycle by:

• Automating analysis and anomaly detection.
• Summarising information for quicker decision-making.
• Freeing finance teams for judgment-based, strategic work.

But Mark was clear: “AI is not about replacing people. It’s about amplifying them and removing friction.”

Where Should CFOs Start?

Mark outlined a simple, practical execution model:

1. Stabilise finance operations – numbers must be defensible.
2. Clean and reconcile your finance data – this is your backbone.
3. Connect systems to establish a single version of the truth.
4. Automate repeatable finance work end to end.
5. Apply AI only when it accelerates executive decisions.

AI maturity does not start with advanced models, it starts with operational discipline.

The ROI of Practical AI: A Case Study

One of Mark’s clients was a manufacturing business processing hundreds of thousands of invoices annually, with high operational costs and risk of human error.

With his help, which included OCR for document digitisation, machine learning models for invoice classification and validation, integration with their ERP and procurement systems, and automated exception management workflows, they achieved:

• 90% automated invoice processing
• 60% reduction in processing costs
• Processing time reduction from 10 days to under 1

In Mark’s words, “The AI used was relatively boring – it’s not going to change the world – but it did change the business and the lives of the people with it for the better.”

Leading us smoothly onto his key takeaway:

Smart small, scale fast and deliver value. Focus on the use cases in your business that drive value – but ultimately, just start – that’s the best way to learn.

Audience Q&A: Real Questions from Privately Owned Leaders

Highlights from our audience Q&A included:

• Choosing the right AI tools:
  Mark recommended Microsoft Copilot for organisations already in the Microsoft ecosystem, though noting Claude currently outperforms it in some areas. Cost vs ROI is essential.
• AI’s sustainability footprint:
  Laura confirmed reporting requirements will be coming and AI’s energy usage will need to be disclosed in future.
• SECR priorities:
  The biggest future challenge? Scope 3, especially purchased goods and services.
• How lenders consider FRS 102 changes:
  Cat noted she is already speaking to banks about this; lenders should know, but businesses should still engage early.

WRAPPING UP

Across accounting reform, sustainability reporting and AI adoption, three themes rung true throughout the morning for Privately Owned businesses:

• Change isn’t coming – it’s already here. Shifts are accelerating and Privately Owned businesses can’t afford a passive or reactive approach.
• Data is the unifying force. Whether for emissions, revenue recognition, covenants or AI models, clean data is the essential foundation for future success.
• Early preparation creates competitive advantage. Acting now – while most competitors are still behind – creates significant opportunity, not just compliance.

Thank you to all our speakers and attendees for a fascinating morning. And if you have any questions about how we can support your business at CP, don’t hesitate to get in touch.