Chief Financial Officer or the CFO plays a major role in the development and growth of a business. Apart from leading the roles that they have been playing since ages now they are expanding beyond that and acting as a strategic partner in the business. They do not limit themselves to traditional financial decisions but work beyond that and they oversight projects, teams and disciplines.
Strategic management and CFO
For any business to be successful in the long run it is important that it acts according to the strategy. Planning out strategies and acting according to that can make a difference in the final revenue figures of the business.
Earlier strategic management was considered a part that is undertaken by the Board of directors. This belief has changed over time and the CFO is also a part of the strategic management. He is also responsible for planning out strategy and them implementing it successfully. For any CFO it is important to understand how the costs will take shape in future and how can they reduce the expenses so that the overall profits increases. They are the key person when it comes to taking financial information and making strategies based on financial data.
CFO as a Strategic Planner
As mentioned earlier CFO is not merely connected to maintaining the finances on regular basis but they are working as a strategic partner of the business. Reducing costs and managing the cash flow is still an activity they need to perform but along with that they also need to set benchmarks and checks so that there is a control on what is happening.
Budgeting and forecasting have always been in the scope of work of a CFO, now along with that, the information is further used for making a business strategy. The planning that they make is not limited to managing the financial data only, but in operating the business and formulating future plans.
CFO is the financial officer whose prime job is to make the finances run smoothly. In order to do that they are getting involved with the management of the business and making out strategies that are helping the companies to think big and perform big is future.
Thus, among the 3 Essential Steps to Taking Over as CFO a person has to understand that he will be liable for the strategy of the business along with other functions performed by them.