A modern-day Chief Financial Officer (CFO) holds a vital position in a company. The CFO leads on both financial and operational decisions that drive the business and is more than a finance manager.
Working as a cash flow expert, CFOs also don the responsibility of managing the growth and tracking the performance of the finance team.
As a result, it is critical for a CFO to ensure that the finance team understands the nuances of the industry and the macro factors impacting decisions. Listed here are some dos and don’ts which they need to advocate to their team.
For a finance team, it is all about building relationships, while still acting as the guardians of financial information. CFOs must encourage their team to build healthy connections with stakeholders, including investors, board members, regulators, suppliers, customers, and company employees.
Finance teams should collaborate and communicate with a diverse range of stakeholders. This can be both demanding and rewarding. It is vital to build strong relationships with other stakeholders to create a win-win scenario for everybody involved.
Business intelligence is a critical part of the finance role in any organization. Data helps understand what the strengths and weaknesses are and how the company can evolve.
As a modern day CFO, you should train your department to be in touch with the leadership teams to understand what is going on. Doing so will help your team make better decisions for the company and avoid being blindsided. Encourage your team to gather business intelligence from leadership teams, customers, and competitors.
One of the most crucial responsibilities of a CFO is to be involved in different business aspects of the company. The finance team can start by speaking with the leadership divisions on the day-to-day business operations.
They need to have healthy cross-team collaboration to manage the company’s finances and operations in a way that creates value for all stakeholders. As a CFO, you are in a position to drive this because of the access to different departments. When the team has insights into varied business aspects, they will be able to devise ways to operate the company at peak efficiency.
The role of a modern-day CFO is no different from being an effective communicator whether communicating externally or internally. The CFO must articulate company strategy and build an understanding among the team about the vision and goals. Let them spend time on external relationships, and invest time in building healthy internal relationships.
In addition to being a good communicator, the team must be versatile and presentable to convince and impress different stakeholders. They must also be flexible, proactive, and adaptable to maintain sustainable value for shareholders and stakeholders.
We live in an age where new technologies transform every field and industry with such rapidity that it is difficult to keep up. A modern finance team automates tasks by using data analytics software and artificial intelligence solutions.
As a leader among the C-suite group, the CFO should guide their team to set aside funds for fresh talent who keep up with the business trends. Your team needs to keep seeking technology that will enable them to optimize mundane tasks and move towards strategic work.
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