Finance in the fast lane: Mastering agility in an uncertain economy

In today’s fast-moving economic landscape, it’s probably no surprise that in The CFO’s Playbook for 2025, 56% of UK businesses say they expect 2025 to be tougher than 2024 – a steep increase from the 35% that expected 2024 to be tougher than 2023.

Volatility has become the new normal. Between rapid inflationary shifts, supply chain disruptions, geopolitical tensions and technological upheavals, businesses are facing ever-changing financial challenges every day.

For finance teams, this uncertainty requires more than just reactive measures – it requires agility.

Agile finance teams don’t just react to change, they anticipate it. They remain resilient in the face of economic shocks, adaptable enough to pivot strategies when necessary, and strategically balanced between short-term financial flexibility and long-term growth.

But what does financial agility really look like in practice? How can finance leaders implement these principles in a way that ensures business stability and growth?

In this article, we’ll explore the key strategies behind financial agility and how businesses can master it in an uncertain economy.

Why agility is essential in finance

Financial planning is a complex task – a fact only emphasised in an uncertain economy. Forecasts become less reliable, cash flow predictions fluctuate and investment decisions grow riskier. And with increased macroeconomic and geo-political factors putting pressure on businesses, financial health is only set to grow more important in the coming year.

‘As we move into 2025, businesses will continue to face uncertainty, and for finance teams, this means doubling down on financial and risk planning to navigate potential surprises’.
– Søren Westh Lonning, CFO, Pleo

It’s clear that finance teams need to stay on their toes. They must constantly reassess budgets, reallocate resources and stress-test different scenarios to ensure financial stability. Because without agility, volatility only becomes more difficult to navigate.

In a volatile market, relying on rigid financial strategies – those built on fixed budgets, inflexible cost structures and long-term commitments – can expose your business to significant risks. If you can’t adapt fast enough, you might find yourself struggling with liquidity issues, missing growth opportunities or even facing financial distress.

This is why financial agility is so important.

Agile financial planning – leveraging real-time data, dynamic forecasting and scenario modelling – allows you to pivot quickly, keeping your business resilient and ensuring sustained growth even in uncertain times.

5 key strategies for building financial agility

Knowing the importance of financial agility is one thing – achieving it is another. Let’s take a look at five key ways to set your business on the path to building financial agility in a volatile economy.

1. Real-time data and analytics

A key element of financial agility is the ability to make informed decisions quickly. This is why real-time financial data is essential for building financial agility. By leveraging real-time data and analytics, you can monitor key metrics like cash flow, expenses and market trends.

Here’s how to do it:

• Invest in cloud-based financial software for real-time data access
• Use AI and predictive analytics to identify trends and risks early
• Automate reporting and dashboards to ensure up-to-date financial visibility
• Integrate ERP and financial systems for seamless data flow
• Set up KPIs to track financial health in real time

These practical steps pave the way for proactive decision-making, allowing your finance team to respond swiftly to economic shifts rather than scrambling to react in time.

2. Flexible budgeting and forecasting

In a volatile economy, traditional static budgeting won’t cut it. To stay adaptable in a fast-moving economic landscape, flexible, dynamic budgeting and forecasting are essential.

Here’s what to do:

• Shift from static budgets to rolling forecasts, updating projections frequently
• Develop multiple scenario plans to prepare for different economic conditions
• Incorporate real-time market data into budget adjustments
• Empower finance teams with the authority to make agile decisions and pivot quickly
• Use driver-based forecasting to adjust budgets based on key business variables

3. Optimised cash flow and liquidity management

In uncertain times, liquidity is king. Businesses need to prioritise cash flow visibility and ensure efficient working capital management.

Here’s what to do:

• Maintain a liquidity buffer to cover unexpected expenses
• Optimise accounts payable and receivable cycles to improve cash flow
• Leverage cash flow automation tools for better forecasting and control
• Diversify funding sources to reduce dependency on a single capital stream
• Regularly perform stress-testing to evaluate liquidity under different scenarios

By leveraging technology to optimise your payment cycles, receivables and short-term investments, your business can maintain stability and seize new opportunities as they show up.

4. Cross-functional collaboration and agile mindsets

Agility isn’t just about numbers – it’s about how finance interacts with the rest of the business. If you want to build financial agility, finance can’t exist in a vacuum: the finance team must work closely with other departments to provide real-time insights and drive faster, more aligned decision-making.

This involves:

• Establishing regular finance check-ins with operations, sales and leadership teams
• Creating cross-departmental financial dashboards for transparency
• Training non-finance teams in financial literacy to boost decision-making
• Using collaborative financial planning tools to streamline interdepartmental input

A collaborative approach ensures that financial agility doesn’t end with finance, but extends across the organisation, making the business as a whole more resilient, adaptable and able to make strategic pivots.

5. Modernising the treasury function

The treasury function is an important, but often overlooked element of developing greater financial agility. In many businesses, treasury spend most of their time on manual tasks – time they could be spending on identifying spend patterns and making their excess cash work harder.

If businesses want to develop greater financial agility, treasury must evolve. This includes:

• Adopting consolidated tools for better financial visibility
• Automating manual processes to free up time for strategic initiatives
• Choosing new metrics to focus on – e.g. return on liquidity (ROL) and treasury cost-to-value ratio – to better evaluate treasury performance

Read more: The buried function: Why treasury needs a modern makeover

Financial agility: Common pitfalls and how to avoid them

In uncertain times, financial agility is essential. With that being said, it’s easy to fall into traps that can weaken long-term resilience. Here are some common pitfalls of financial agility and what you can do to avoid them:

Overreliance on short-term cost-cutting

When faced with economic uncertainty, many businesses turn to immediate cost-cutting as a quick fix. It’s understandable. After all, reducing expenses can provide temporary relief. On the flip side, however, excessive or indiscriminate cuts can undermine long-term growth.

Slashing R&D, marketing, talent development – it might improve short-term cash flow, but it can leave your company unprepared for future opportunities.

Instead of reactive cuts, focus on strategic cost optimisation. Eliminate inefficiencies whilst preserving investments that drive sustainable success.

Lack of scenario planning

We mentioned above that in a volatile market, rigid financial strategies become a liability. Despite this, many companies fail to implement robust scenario planning – and without it, you risk being caught off guard by sudden shifts in demand, supply chain disruptions or interest rate fluctuations.

One way to prepare for economic uncertainty is stress-testing. Stress-testing financial models under different conditions – e.g. economic downturns, inflation spikes or supply chain failures – helps you assess multiple scenarios and pivot faster.

Indeed, in The CFO’s Playbook for 2025, 70% of total organisations say that stress-testing their business’s financial health has become more important than ever. In other words, it’s an important tool for keeping your company stable regardless of external pressures.

Poor oversight or cash flow management

Cash flow is the backbone of financial agility. Without real-time visibility into cash inflows and outflows, you may end up struggling to cover your operating expenses or seize opportunities when they crop up. And poor oversight can lead to everything from liquidity crises and delayed payments to strained supplier relationships.

In short, there are plenty of reasons why you don’t want to fall into this trap – and luckily, there are several things you can do to avoid it.

Optimise working capital management and maintain liquidity buffers to weather unexpected challenges. You should also consider implementing automated cash flow forecasting tools.

For example, if you have an account with Pleo, you’ll soon be able to benefit from our new Cash Management Suite which will help you take control of your company’s liquidity – it’s fast and easy.

By avoiding these pitfalls, you can enhance financial agility in a way that strengthens long-term resilience rather than compromising future stability.

You might also be interested in: Treasury management: The key to financial stability and sustainable growth

Balancing agility with long-term growth

Financial agility allows businesses to respond swiftly to economic changes – but here’s the thing: without a clear long-term vision, constant short-term adjustments can lead to instability.

The challenge lies in maintaining financial flexibility whilst ensuring sustainable growth.

To strike this balance, finance leaders must embrace adaptive strategies that support both immediate decision-making and long-term objectives.

Agility shouldn’t mean abandoning structure – it should mean building resilience into your financial planning so you can pivot when necessary without compromising future success.

One key approach is to align short-term flexibility with strategic business goals. Instead of making reactive cuts or sudden shifts that could weaken the company’s foundation, finance teams should implement measures that allow for quick adjustments – such as scenario planning and rolling forecasts – whilst keeping the bigger picture in focus.

This also means continuously evaluating financial decisions against long-term priorities. It’s about ensuring that cost optimisations, resource allocations and investment choices all contribute to sustained growth – not just short-term survival.

Another crucial factor is maintaining financial stability whilst remaining responsive to change. This can be achieved by:

• Building financial buffers to absorb market shocks without derailing long-term plans
• Diversifying revenue streams to reduce reliance on any one source of income
• Investing in digital transformation and innovation to future-proof the business
• Optimising – not just cutting – costs to ensure efficiencies don’t come at the expense of future opportunities

In uncertain times, sustainable financial planning requires a blend of agility and discipline. Finance teams must foster a culture of adaptability whilst ensuring that every decision – whether in response to short-term volatility or long-term projections – aligns with the company’s overarching strategy.

By doing so – and through real-time data and analytics, flexible budgeting and forecasting, optimised cash flow and liquidity management, cross-functional collaboration and modernising the treasury function – businesses can navigate economic uncertainty with confidence and stay resilient in the face of change whilst continuing to grow.