The Changing Role of Chief Financial Officers
As you know, amidst this business revolutionary era the CFO roles are changing. It’s becoming more focused on strategy, value and future. But the role in the service and utility sector is changing faster than the most. The ambit of the service sector is being reshaped by the general transformation that's happening within the CFO role but also by energy transformation, which is shifting the technological, market and customer context for companies within the economy. The CFO’s roles have always ranged from a custodian preserving value to a visionary creating value. Within the past, the normal business model within the power utility sector has attended to move the CFO role towards the fiduciary end of the spectrum instead of the visionary end. But now this role is becoming far more about strategy and even more about value realisation. With a singular, holistic view of the business, the fashionable CFO is breaking the normal boundaries of their finance-based role to develop insight-driven strategies for growth.
- A CFO is a senior executive liable for managing and finalising the financial statements of a corporation. The CFO's duties include tracking income and financial planning also as analysing the company's financial strengths and weaknesses and proposing corrective actions.
- The role of a CFO is analogous to a treasurer or controller because they're liable for managing the finance and accounting divisions and for ensuring that the company’s financial reports are accurate and completed during a timely manner.
- The CFO reports to the Chief Executive Officer (CEO) but has significant input within the company's investments, capital structure, and the way the corporate manages its income and expenses.
- The CFO role has emerged from those who specialize in compliance and internal control to business planning and process changes, and that they are a strategic partner to the CEO. The CFO plays an important role in influencing company strategy.
CFOs as a Strategic Partner to CEOs
The CFOs add value to corporates as a strategic partner to the CEO, by understanding the commercial opportunity, setting corporate goals also as managing, and also developing external stakeholders. They’re now taking active interest within the strategic problems with the corporate. They increasingly play a central role within the definition and execution of strategy and therefore the setting and delivery of performance targets, ensuring that the corporate meets its stakeholder’s obligations. CFOs are now working hand in hand with the CEO of the corporate to craft the strategies of the corporate and drive it. They’re a finance leader who is quite just a scorekeeper, who may be a key strategic business partner to the CEO. They are now also a part of the board of directors of the corporate and involved within the framing of policies and methods of corporate finance.
Also read, Importance of Hiring a Virtual CFO for your Business
CFO has aligned to shape the CEO’s agenda around its own specialise in value creation. CFOs who conducted a worth audit could immediately pitch their insights to the CEO and therefore the board—thus gaining credibility and beginning to shape the dialogue. What’s more, the CFO is in a unique position to place numbers against a company’s strategic options during a way that lends a pointy edge to deciding. The CFO's duties include cash flow management and financial planning as well as analyzing the company's financial strengths and weaknesses and proposing corrective actions. The CFO at a high-tech company, for instance, created an idea that identified several key issues for the long-term health of the business, including how large enterprises could use its product more efficiently. This CFO then prodded sales and repair to develop a replacement strategy and team to drive the product’s adoption.
They are also actively involved in the negotiation with suppliers and customers. They convey actively with the investor’s community to offer feedback on the performance of the corporate. CFO as custodian of data and in a unique position to interact with all the depts. has the potential to form a lot of useful additions to the business. they need a variety of tools at their disposal, including dashboards, performance targets, enhanced planning processes, the company review calendar, and even their own relationships with the leaders of business units and functions.
In Brief, the changing roles of CFO are as follows:
1. Act as a strategic partner with the remainder of the business.
2. Accurately report quality data (close the books efficiently and effectively)
3. Provide strong analytics and management reporting to support deciding.
4. Maintain standardized, sound, and consistent underlying financial processes.
5. Impose financial discipline on operations and other back-office functions.
6. Comply on a sustainable basis with financial regulations.
7. Adapt finance function and systems-to-business changes like acquisitions or divestitures.
8. Promote the financial acumen of nonfinancial managers across a larger organization
Why choose CDA?
CDA offers the best CFO service in Dubai and all over the UAE. Our skilled and efficient professionals help you in better financial management and business strategies. Our experience and our dedication are our assets, and that makes us different from others. We value your trust in us and will ride with you to take your company to overcome the impediments and accelerate to achieve your goals and fulfil your vision.
You may also read, How a Qualified CFO can Bring Added Value to the Company
CDA Audit becomes your best partner in finance. Our CFO experts can assist you once you are stuck with decision making. CDA professionals will analyse your existing performance and will provide you with advice for the better performance in the awaited huge Investment Chance, and exploit the Investment opportunities for the visionary investors. Besides providing CFO services in Dubai and UAE, we offer various other services such as Accounting Services, Auditing Services, Vat & Tax Consultant Services, Implementation of Accounting Software Services and Due Diligence Audit Services. If you have any queries or need any of our services, feel good to contact us. Our expert will call you back immediately and will offer you a one-hour free consultation.