The new CFO role  for the digital era

The new CFO role for the digital era

From our experiences working with clients across the country, we’ve learned that when a CFO is going to take part in leadership decision-making, they tend to rely on analysis of historical and economic data in order to spot trends and make projections and recommendations for the company. Which sounds like a reasonable approach. 

Unfortunately, in this era, the traditional data that CFOs have relied on is not enough. It is not complete.  Small and large businesses alike are now members of a global community. As a result, situations that impact a region halfway around the world may directly or indirectly influence even the smallest businesses in ways that will require consideration in the decision-making process. 

Obviously, the level of data that is available won’t be as valuable to some companies that may be fine with maintaining the status quo. Unfortunately, for many of these businesses a global impactor like a pandemic can easily put them out of business.  But for those companies that seek to stand out in the marketplace – to be extraordinary – the extra effort to analyze both internal and external data in the planning process – including understanding the ramifications of global impactors will give these companies a significant advantage in their operations. 

In the article, “A new CFO for a new era,” authors at KPMG describe how the role of the CFO is changing, specifically with regard to access to and interpretation of the plethora of business data.  According to the article, CFO’s in mid-market companies must be able to: 

  • Embrace extreme automation – automate core finance and accounting processes and reduce labor requirements by up to 70% 
  • Learn the language of predictive analytics – anticipate changes in order to make change less disruptive 
  • Link the company strategy, financial projections and management metrics – participate in or be aware of the company’s strategy 

The role of the New Era CFO has been elevated and rightfully so.  They are much more a critical part of today’s leadership teams and assets to the strategic planning process than ever before. The insight that can be provided to the leadership will be invaluable as companies continue to grow, expand and enhance their global reach. It is the companies that can leverage these individuals that will likely be the ones that embrace greater opportunities and become extraordinary businesses. 

While many smaller companies cannot embrace hiring a full time CFO, many are in reach of working with an outsourced Financial Manager who can provide a similar level of support to that of a CFO.  The Financial Manager will provide financial management support and services appropriate for each company for their revenue level and phase in the business lifecycle. Automation, predictive analysis and participation in strategic planning, financial projections and management metrics will leadership with essential information and decisions on financial vehicles, investments and growth modeling will help support the company as it charts its path to the future. 

For the driven company that is determined to stand out in the marketplace, engaging a Financial Manager early on will help to ensure that the company can grow in a manner that is financially sound while reducing risks associated with growth and being prepared to take on challenges that will impact the company.   

To learn more about Financial Management and how WistBooks Financial Management can be an asset to your business, click the link below to set up an appointment. 

WistBooks Financial Management. Wise + Strategies to take your business financials further.(TM) 

WistBooks provides integrated Bookkeeping, Advisory, and Financial Management services that leverage financial data to help small businesses execute a winning strategy. Through Quickbooks Online cloud accounting, financial dashboards and regular online advisory sessions, we support business owners and leadership in maximizing their financial decisions to maintain and support company growth.

From now through June 2020, we are offering all new clients a 10% discount on any service for the first year. Remember to mention WistGift to receive your discount.

We would love to hear from you.  Please share your thoughts and comments below

Leave a Comment