Financial management must be in a safe position in the fast run of your business race on. Nowadays, only those businesses survive that sustain their credibility. Finances and taxes are the two paradigms of a business. A Chief Financial Officer (CFO) tends to provide you with professional CFO consulting to safeguard your business operations. However, for a CFO, there are certain skills that he must learn to match pace with ever-evolving corporate fusion. This story post not only benefits the CFOs but also will be helpful for business owners to understand how to analyze a CFO hire.
Broader Business Horizons
While a foundation in finance is important, CFOs will need broader business knowledge and operational experience as they take on a more strategic role. Beyond pure finance and accounting, much more operational knowledge, influence, and understanding are needed for this role. The most important experience for future CFOs is learning a business’s practicality. This will require CFOs to develop much broader leadership capabilities beyond traditional finance strength, with deep Business and sector-specific experience and knowledge.
Portfolio Updates
One of the effective skills a CFO should learn is to update his portfolio with commendable milestones. Given the breadth and complexity of the CFO portfolio, finance executives must be exposed to as many parts of the Business as possible. Companies need CFOs who have taken a ‘corkscrew’ approach to their careers rather than follow a straight line. An updated portfolio also allows CFOs to build closer relationships with leaders and increase their influence with peers.
Data Analysis Prowess
Data is becoming increasingly important to business success and helping companies identify new market opportunities to improve customer experiences, drive business planning, and support change and innovation. CEOs are looking to CFOs and finance teams to deliver analytics and insights that support strategy and decision-making. In fact, according to a report titled “The Changing Role of the CFO” from the ACCA and IMA, the finance function and the CFO are expected to be at the heart of this data revolution. That’s why a CFO must learn the advanced tools and technologies to analyze data to give his best in favor of the company. Businesses prefer to hire CFOs with the latest data mining and analysis certifications.
Close Collaboration with CIO
Building a strong relationship with the CIO (Chief Information Officer) will also be critical for the CFO. The more data-driven an organization is, the more CFOs need to learn how to better understand each other (CFO and CIO). By collaborating more closely, they can also evaluate the technologies and financial systems required to support CFOs and their teams’ expanded responsibilities. CFOs must partner closely with CIOs in this data-driven revolution and help them understand what data they need. The challenge in the past has been they often speak different languages, so improving that communication channel will be important. As a premier CPA firm in Dallas, we offer expert financial services tailored to your needs. Our seasoned professionals ensure precision in tax planning, audit, and consulting. With a commitment to excellence, we guide you towards financial success and compliance with confidence.
Effective Communication Skills
A big part of the CFO role will be delivering data and communicating what that data means to multiple stakeholders, many of whom need to gain finance backgrounds. Successful finance leaders should seek out opportunities in their organizations to Work with different stakeholders and improve their communication skills. This point is underscored in the “Future pathways to finance leadership traits”, which notes that future finance leaders must “talk the same language” across a wide range of traditional and nontraditional finance relationships. Effective communication enhances their experience and will pave the way for future project deals.
Adaptability with Technology & Innovation
CFOs are working in a time of unparalleled business change and disruption. The CFO of the era and finance teams will need to adapt quickly to change, whether supporting their company’s ability to move into a new market or adapt to new regulations to create a new business model. CEOs are also looking to CFOs to help drive innovation and transformation within the attributes of the entire accounting team. For a CFO, adapting the innovation is one of the most pressing issues for CFOs. We live in an era of disruption, and CFOs need to think of facts: How do I make sure that my company is innovating and staying on top of their industry, and what is happening when the company is disrupted—how is this impacting the Business and culture?
Gain Global Experience
The CFO of the future faces an increasingly complex global economy, with high-growth emerging markets, developed markets, and continued volatility in the financial markets all impacting business priorities and strategies. Having global experience will be a necessity. Global experience is now regarded as a CFO’s most important attribute. Here’s a question that must be ticking in your mind: How do you gain global experience as a CFO? The answer lies in being a virtual CFO. You can work with various international companies to attain international experience and global insights into the profession.
Hone Planning and Analytical Skills
The next crucial skill for trusted CFOs is to hone their business planning and data analysis skills. They should learn standardized databases and quantitative skills for better financial planning and analysis. Businesses expect a CFO to bring data-driven answers for financial and operational performance. For instance, routine analyses might compare the fiscal year’s performance to the previous ones. On the other hand, some more data can be analyzed ad hoc, including calculating the return on investment for new sales. A learned practice of the two strategies to address some of the same questions as a functional CFO; however, it takes a more proactive approach integrated with information technology (software).
Final Thoughts
The importance and breadth of CFO skills continue to grow to shape a reliable CFO who looks very different from those of the past. CFOs will need many skills and capabilities to prepare for future opportunities and challenges. Whether you are a current CFO or a future finance leader, continuing personal and professional development by adopting these 8 skills will be critical for your success and career.