Faced with tariff shocks, inflationary pressure and recession fears, finance leaders are tightening their grip on cash while doubling down on technology investment. That’s the top-line finding from Billtrust’s latest survey of 550 senior finance professionals, which reveals a shift towards strategic vigilance and selective transformation in the face of mounting uncertainty.

A striking 63% of respondents say they have adopted more cautious cash management practices in 2025, with many opting to reduce discretionary spending and capital investments. This conservatism is rooted in economic concern: 82% of finance leaders believe a recession is either likely or possible in the next 6 to 12 months.

At the same time, investment in digital transformation continues apace. Despite tighter controls on spending, 67% of respondents have allocated more than 10% of their annual budgets to AI and automation. Even more notably, 18% are going further still, committing over a quarter of their total spend to these technologies.

This dual track approach of tightening core operations while selectively modernising marks what Billtrust calls a “reset” in financial leadership. Rather than treating cost-cutting and innovation as opposing strategies, today’s CFOs are embracing both. The result is a new form of financial resilience, one that balances financial discipline with adaptability.

Tariff risks drive structural responses

One of the biggest shocks in recent months has been the resurgence of tariffs. Billtrust’s data shows that 83% of financial leaders have experienced moderate to significant cost increases due to tariff changes, with nearly a quarter seeing cost rises of more than 15%.

To counter these challenges, firms are turning to structural solutions. Rebuilding supplier networks (40%), transforming inventory approaches (34%), and reconfiguring manufacturing footprints (30%) are now firmly on the agenda. Rather than reacting with price hikes alone, finance leaders are collaborating with supply chain teams to engineer long-term resilience.

The report notes that many of these changes mirror strategies employed during the early years of the pandemic. But while then they were seen as stopgaps, today they’re becoming part of long-term planning. As a result, finance leaders are being pulled deeper into operational strategy, with their role evolving far beyond balance sheet stewardship.

Forecasting through the fog

If 2024 taught businesses anything, it’s that static planning no longer works. According to the Billtrust study, 85% of finance leaders now review forecasts at least quarterly, while 38% are doing so monthly or even more frequently.

This increased frequency is enabled by new tools and systems, with 90% of respondents saying they now rely on AI to support financial decision-making. Most view this positively: 83% believe AI has improved their ability to manage financial risk in 2025.

The shift away from annual planning cycles is more than procedural. It signals a deeper change in how companies think about agility. With geopolitical instability, interest rate volatility, and sudden shifts in regulation all in play, finance teams are building what Billtrust describes as early warning systems that allow them to adjust within days rather than quarters.

Resilience starts with risk awareness

Behind the adoption of these tools lies a strategic emphasis on real-time visibility. AI-driven dashboards and predictive analytics are helping finance leaders not just to monitor risk, but to simulate scenarios and test responses before crisis hits. This is particularly valuable when it comes to managing working capital, credit risk, and exposure to global markets.

Another theme running through the report is the integration of AI into core treasury functions. Liquidity management, days sales outstanding (DSO) analysis and invoice forecasting are all areas where finance teams are beginning to use machine learning to fine-tune performance and improve control.

The Billtrust report points out that as AI continues to mature, its value will be defined not by novelty but by results. Those who integrate AI into cash flow planning and customer payment forecasting are already seeing returns in the form of lower risk, faster collections, and better allocation of capital.

Linking cash discipline to commercial agility

The study also reveals how changes in cash strategy are influencing working capital priorities. With 63% tightening cash management, leaders are sharpening their focus on liquidity buffers and high-velocity cash cycles. This is particularly relevant for organisations operating with thin margins or in highly competitive sectors.

To support this shift, companies are investing in accounts receivable automation, improved credit scoring tools, and deeper collaboration between finance, sales and operations teams. Some are reviewing payment terms and rebates to incentivise early payment, while others are introducing predictive cash application models to reduce lag.

These measures are helping businesses maintain agility while preserving financial headroom. In an environment where interest rates remain higher and access to capital is limited, the ability to convert receivables into working capital quickly is becoming a key performance differentiator.

Staying ahead of the cycle

Perhaps the most forward-looking insight from the report is the emergence of a more continuous, data-driven approach to strategy. Leaders are no longer reacting to change but are actively preparing for it. This includes monitoring shifts in customer behaviour, evaluating the impact of interest rate policy, and preparing for regulatory change in areas such as ESG and digital payments.

In this context, risk is no longer seen as something to avoid. It’s something to measure, monitor and manage. That’s a major change in mindset, and one that suggests finance leaders will continue to play a central role in shaping business strategy long after today’s headwinds subside.