In Pursuit of Success: 3 Important Roles of CFO in Business Growth
Sustaining a firm's progress is no piece of cake. Over the years, the CFO's roles brought growth to businesses in terms of operational efficiency, financial standing and technological advancements.
More than just bean-counting, CFOs of today are faced with the challenge of going beyond the books. They work hand-in-hand with the CEO to drive progress through their financial position in the company. Since finance is the backbone of every business undertaking, a CFO’s prowess will help your company navigate the increasing complexity of today’s industry.
3 Important Roles of CFO in Business Growth
Future-proofing the Business
Growth mindset is a driving force for a business to mature and develop. Whether you’re managing a startup or an established corporation, CFOs must be ready to welcome innovation inside the team. Using the latest technology at your disposal not only gears you up for more waves of changes to come but equips you enough to make sound decisions for the company.
When the CEO’s goals are aligned with a finance strategy, you set the direction of the plan. CFOs are proactive executives- they don’t rely on the firm’s past losses but are more interested in making strides for significant improvements in the future.
CFOs support the CEO through setting flexible business plans. Provided that the global marketplace operates in a fast-paced environment, formulating flexible projects gives the company better chances of keeping up with the disruptions. Having modifiable plans can support how you execute core operations.
Maintaining Financial Stability
The volatility of the industry motivates today’s CFOs to further push the stability of their finances. Solid financial grounds are established to make sure your core operations remain intact and fully functional.
CFOs thrive on numbers- safeguarding cash flow, doing financial reporting, crunching your numbers, bookkeeping and others. These figures give them access to relevant data crucial for delivering insights into business performance.
As a steward of the organization, a CFO’s in-depth understanding of the company’s financials allows them to identify existing trends and opportunities in the market and how it can affect your growth in the coming years. CFOs are responsible for making sure that there is enough capital for the business to operate and to keep you afloat during the lean seasons of a fiscal year.
Their grit and agility allow them to identify and capitalize on long-term investments for the company as well. Their perspective remains crucial for the business decisions and likewise to the financing strategies for the firm.
Organic business growth strategy roots from different aspects of your operations. One major contributor is the extending breadth of new technology disrupting the industry. As automation, artificial intelligence and robotic accounting give us a more convenient approach to work, CFOs became more involved in the process of strategy development for businesses. Modernization kicking in has dramatically increased the need for more informed and technology-driven decisions.
While the financial expertise of CFOs is still relevant, there are situations which call for enhanced leadership. They lead the company towards innovation and process improvement. As they lead from cross-discipline knowledge, CFOs have more extensive solutions, combined with their finance strategies which pave the way for sustained growth for your firm.
As a drastic evolution of the CFO roles in business growth take course over the years, they have been effective partners of CEOs in driving firms forward. Aside from meeting expectations, they push the boundaries of the company by challenging innovation and stepping up their leadership skills.
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D&V Philippines can provide you with the support you need in managing your books, updating financial reports and extracting insights from your numbers. Schedule a free consultation to us today!
You can also read our whitepaper Premium CFO Solutions and discover how we can support you in fulfilling your role as a CFO. You can also refer to our other useful guides on finance and accounting outsourcing to learn more about us.
This article was first published on 04 February 2020 and updated on 01 August 2023. Edited by: Angelica Garcia