Historically, the Chief Financial Officer, or CFO, is a position that is responsible for the finances of the business, from bookkeeping to tax reporting. Modern CFOs do much more than just manage and report the income and outgo. The role of the CFO is changing. Today’s CFOs still have a financial focus, but they need more skills than just accounting.
CFOs Are Leaders
Good CFOs must provide advice and counsel to the business. Communication skills are a necessary asset to any CFO. While knowledge of the industry is paramount, translating information to people who don’t understand financial-ese is a must.
CFOs Have to Understand the Business
In order to provide analytics for your business, a CFO must understand the business model and how the finances affect every aspect of the business. Setting benchmarks for a specific business depends on many elements, some of which are complex.
CFOs Have to Be Involved in Strategy
Being able to analyze the economic trends of the industry and apply it to the business is essential for CFOs. Letting the CFO be involved in your business strategies can help you set better goals and outcomes with a plan to reach those goals. Using financial information as part of your strategy can give you a boost with investors and stakeholders.
CFOs Are Business Partners
Traditionally, the CFO was considered the technical financial advisor, but today’s CFOs are an integral part of the C-level team. the CFO can help drive business with financial data that can contribute to the decisions the rest of the team makes. A good CFO isn’t just in a finance role, but in a leadership position in the business to make the CEO more effective.
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