The average day of a CFO is riddled with issues and complications, what with their ever-changing roles due to higher client expectations. The traditional CFO role in financial management has evolved into one with comprehensive strategic planning. Living up to client expectations with the proliferation of technology has become an arduous task.
So, we rounded up 4 common problems CFOs face, together with possible solutions, to help you avoid having to deal with their consequences:
Problem # 1: Talent Acquisition and Development
Hiring competent individuals is already a challenge in itself, let alone having to train and develop these individuals into becoming an asset to your team.
Solution: Be proactive in showing that you value your people
Making sure that your employees find professional growth in your organization is crucial to your business' success. To improve your talent pipeline, show your employees that you recognize their hard work. If your company cannot afford raises and bonuses, look for alternative ways to give them recognition.
Get the best people for your finance department by veering away from the ‘technical specialists’. Look for business-minded people who can add value to decision-making. Train your teams so that you can devote your time to developing strategies for your company.
Problem # 2: Government Compliance
Regulations are changing at a rapid pace. Companies are allocating more and more resources on legal expenses when they can focus on their investments and innovations.
Solution: Create a balance between meeting your regulatory requirements and driving growth to your company.
Staying up-to-date on potential new regulations that may affect your company’s finances should be your top priority. Make sure you have strategies in place when sudden changes in regulations are implemented. A well-thought-out and carefully managed strategy cushions the blow of these legislative changes, reducing the disruptions it may cause to your business.
Problem # 3: Keeping up with technology
Technology has drastically changed the landscape of accounting. CFOs are provided with an enormous amount of information that they are sometimes overwhelmed by the sheer volume of data they have to work on.
Solution: Do not be intimidated. Use the data to your advantage.
Every information available to your finance department is a potentially successful strategy waiting for your in-depth analysis. All of these are useful data that you can use to give your company direction. Base your strategic recommendations on efficient monitoring and real-time data and trends. This way, you can turn them into concrete efforts that would drive success to your business.
Problem # 4: Risks of Cyber Attacks
These attacks are inevitable. Loss of intellectual property and public relations issues related to cyberattacks can be immensely detrimental for your company.
Solution: Move to a cloud-based accounting system.
Aside from investing in cyber security and creating contingency plans for cyber-attacks, look into moving to a cloud-based accounting system. The outdated systems are easy targets for cyber terrorists which can disrupt your business, causing loss of revenue. Cloud-based systems have stronger defenses against cyber-attacks while ensuring you are complying with the latest regulations.
Learn more about D&V’s outsourcing services for CFOs with our team of finance and accounting experts. You can also download our whitepaper, Solutions for CFOs, to discover how our accounting solutions can turn your business around.