The role of the CFO has undergone a profound transformation due to the economic situation in recent years. Companies have imposed changes in their internal organization to obtain the maximum financial performance and optimize profits. Thus was born a new CFO profile with a transversal presence in all areas of the company.
Traditionally, the CFO or financial director has been the person in charge of ensuring the financial prosperity of an organization. An executive who, apart from keeping budget control, designs and implements strategies to get the most out of a company’s resources. However, in a world like this, increasingly globalized and changing, the CFO has become a strategic piece with new roles and tasks that must not only improve the quality of financial protocols, but must also be aware of the market trends in an increasingly competitive context.
The major concerns of CFOs center on three aspects: the effects of the pandemic on the international economic slowdown, the possibility of outbreaks and the impact on the financial situation of their own companies. Other aspects such as the disruption of their supply chains (17%) or the ability to have their employees work in a hybrid model of face-to-face work and telework (16%) are no longer among the aspects that take away their sleep and that they were during the crudest stage of the crisis.
His responsibilities include obtaining relevant data to carry out deep and rigorous analyzes that provide a strategic vision of the company and its environment. Therefore, it plays a fundamental role when interpreting complex financial information that facilitates intelligent decision – making.
CFO: strategist in his day to day
The current business situation is characterized by extreme complexity in which various factors come together: legislative changes, internationalization, distrust of consumers, weak markets … In this context, the virtual CFO India needs to develop new skills that favor efficiency and the transparency in their daily work.
Defining an appropriate business strategy requires having the right resources, including technology. Therefore, one of its main functions will be to choose the tools that meet the needs of the financial area. It is not about turning the CFO into a technologist but about providing them with tools to obtain useful data in an agile way.
With predictive analytics, companies can transform the finance function through big data. This will allow, for example, detecting and anticipating possible risks for the company and to take measures before they occur or to develop models of market behavior in certain situations.
CFO: transparent in your communication
Customers, investors, employees and partners are increasingly demanding a more transparent handling of financial information. Gone are the days when the CFO’s responsibility was limited to delivering company results.
Today, you also have to be able to communicate the value and integrity of the company. That is why communication has become an essential element in the finance department’s strategy. To meet the challenge, technology can become the CEO’s great ally. Filing income tax return in USA becomes easier with a CFO India.
Business intelligence tools add value by providing consistent, up-to-date and well-structured data to accurately report on the company’s situation. In addition, they convert this data into relevant information to decide where to invest or the best way to obtain financing.