How a Qualified CFO can Bring Added Value to the Company
‘Cash is the King; a Competent CFO is a King-maker’
Who Is a CFO of a Company?
CFO or the Chief Financial Officer is one among the strategic higher-ranking executives in any private concern and is imperative to an organization’s long-standing success. He is the one responsible for the financial actions of a company. In the past, the CFOs had to concentrate only on the financial operations of the company; but today’s CFOs drive the direction and success of the enterprise they work in and bring added values to the company.
What are the Duties and Responsibilities of a CFO?
A CFO has to function the following responsibilities in the company:-
a) A CFO is accountable to manage the cash flow of the company
b) He is to plan and manage the financial actions of the company
c) He is to analyze the financial strengths and weaknesses of the company
d) He is to propose corrective measures the for improvement of the company
e) He is responsible to ensure the record-keeping of the company
What are the basic skills needed for a CFO?
A Chief Financial Officer must occupy the following basic skills to make the company unbeaten:-
a) The CFO must have good problem-solving skills
b) He must have better leadership skills, strategic vision and decision making power
c) He must have better skills in cash management, financial accounting, corporate finance competence, etc.
d) He must possess strong work ethics
e) He must be buoyant and reliable in company matters
f) He must show the ability to face and prepare for the challenges
How does a Qualified CFO bring Added Values?
The past tasks such as book-keeping, record keeping, financial reporting, and legal compliance are decisive for the finance squad, but more than that today’s` and tomorrow’s CFOs must be able to take monetary statistics and channelize it to power operational decision making and strategy. Other than the technical accounting background of the past, they must possess many more skills. In addition to the finance role, CFOs can act as an effective COO ( Chief Operating Officer). They become successful business partners to the CEO. They help and guide the CEO in decision making using the financial milieu.
A CFO can bring added values to the company in the following ways:-
a) By facilitating to nurture the concern more rapidly: a qualified CFO must analyze the existing financial position and market trends of the company. This will augment the financial tactics and perk up the cash flow and turnover of the company while keeping a cap on the price tag.
b) By recuperating the productivity or profitability of the company: a CFO can impact the balance sheet of the company by controlling the expenditures, convalescing the production and examining and suggesting pricing strategies. Since he has the access to the past and current financial reports, he can gauge how the cost can be controlled to exploit the profit. He has to understand any hold-up or deceleration in the day-today operations by analyzing the productivity of the employees in the company. With the help of the financial report, he can analyze the net income and counsel the best possible pricing strategies for the products or services.
c) By improving the cash flow: It is the responsibility of the CFO to manage the cash operating cycle (COC) of the company and improve the cash flow. By doing this, he can help the company advance collections, pricing, and provisos consequential in augmented liquidity.
d) By using the capacity to acquire maximum advantage from the banks: A successful CFO can obtain increased leverage from the banks by maintaining open lines of communications with the bank, and thus enable the company to acquire the fund needed for its better growth. When working with banks, he can add to the financial know-how of the company. A CFO is a responsible person to handle the financial operations of the company and to communicate with the bank in financial language. His better communication skills and confidence-building measures can reboot the cash need.
e) By providing leadership and direction: An effectual CFO can offer better ideas, and showcase and sell the financial picture of the company whenever it is asked by the CEO. He can also bring financial insight to sales and other operational departments who often dissociate themselves from financial strategies or company finances. Being a visionary, a CFO foresees the future of the business and thinks strategically about the potential growth and affluence of the company.
So basically instead of having an In house CFO by Medium scale companies, get the opportunity of having Outsourced CFO services from a firming accounting firm in Dubai UAE. This will be more cost-effective as well as qualified team services on your door step.
So, if you have any queries or doubts or need any assistance related to CFO Business Services, Financial Advisory Services, Management Consulting Services, Accounting and Bookkeeping Services, etc. in the UAE, we, the CDA Accounting and Book Keeping Services LLC are always there for your assistance. We are one of the most excellent Service Providers in this field.
Never hesitate to make a call. No doubt, our well-experienced specialists will offer you a one-hour free consultation.