How to Overcome the 4 Common Challenges of a Modern CFO
With the constantly changing landscape in which companies operate in today's modern world, CFOs have had to adapt – the scope of their responsibilities growing along with the company's growth. While the traditional CFO solely focused on financial management, you see modern CFOs nowadays taking the lead on their operations’ comprehensive strategic planning.
To help CFOs adapt to their changing role, we'll discuss some of the common CFO concerns that being in their position entails and how to overcome it.
Here are some of the common challenges a modern CFO faces
Problem # 1: Talent Acquisition and Development
Finding the right talent is already a challenge in itself, let alone having to train and develop these individuals into becoming an asset to your team. So how do you ensure that your company has quality talents?
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 company's 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 people with out-of-the box ideas 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 constantly changing at a rapid pace - and due to this, companies are allocating more and more resources to legal expenses – taking company efforts and resources away from core tasks and strategic planning on investments and innovations.
Solution: Create a balance between meeting your regulatory requirements and driving growth to your company.
Staying up to date on potential changes and additions to 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 this is 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.
Read Next: CFO’s Guide to Strategic Decision-Making
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This post was first published on 25 April 2017 and edited 7 July 2023. Edited by: Aly Tagamolila