The CEO is the business leader and guides the business strategy, while the CFO is the key leader in executing the strategy. The CFO also plays a critical role in re-establishing public trust and serving as a significant bridge between the CEO and the board on administering issues. The new CFO’s objectives are difficult and he/she needs to deal with a few contradicting activities simultaneously.
One of the key duties of any CFO is to:
Protect the organization’s bottom line:
Currently, most organizations are focused on top-line growth in income and profitability. As global economic rivalry rises and the rate of growth in profitability reduces, numerous corporate executives today face significant difficulties. This global competition drives them to decrease costs and to safeguard their bottom-line growth. This places the CFO and its finance team on the center stage, and today’s competitive and dynamic markets expect organizations to engage in intelligent cost depletion.
These cost depletions must not hurt their current growth potential, intangible assets, for example, individuals, intellectual capital, clients, and business partnership relations, and ought not to put their future in danger. These activities force corporate executives, business leaders, and controllers to require extended data about existing performance and future dangers, and new business opportunities.
This is way past the conventional profit and loss (P&L) statement and balance sheet deliveries. CFOs should now respond to a new environment and give new analytic tools that deliver not just accurate and timely data on existing financial performance, yet in addition to its drivers across the whole business. One of their vital purposes is to give as accurate an estimation as possible, not just of financial performance but also of the underlying business drivers. Integrating these estimations, it would give the foundation for dynamic performance management to business leaders.
Today’s CFO must be a true Renaissance man or woman, having core financial aptitudes as well as operational experience, strategic planning expertise, and management of people. CFOs can’t be repressed by organizational outlines. are progressively expected to work across inter- and intra-organizational boundaries to inform, discipline, and inspire chiefs, managers, clients, providers, and regulators. The position is equally challenging and encompassing, but can be exceptionally satisfying.