Finance forms a major part of any organisation. According to statistics, the finance sector will generate a revenue of 2.38 billion USD by 2027. This staggering amount reflects the financial sector’s potential to grow in the coming years. Growth in business points towards a growing need for brilliant minds in this industrial segment.
The Chief Financial Officer of an organisation oversees its finances. It includes overseeing significant financial aspects and minute details that can make or break a company. The CFO’s role in any organisation is indispensable. Hence, it is important to understand how to strengthen your position as an aspiring CFO to give an edge to your company.
Who is a CFO?
A Chief Finance Officer or CFO is the primary caretaker of a company’s finances. They look after the accounts, analyse financial takeaways and strategise financial endeavours. They are top-tier executives who oversee multiple minute aspects of finance.
Becoming a CFO heavily inclines toward skill and experience. The job role requires more than a degree with a background in finances. Since they handle an organisation’s financial future, they must have foresight, be capable of working well under pressure and lead teams successfully.
The role of a CFO
A CFO works towards improving turnover and creating financial policies for maximum benefits. This requires years of experience, an exceptionally sharp mind, and a good academic CV.
The responsibilities of the CFO stretch beyond basic finances. The CFO’s role is not merely limited to accounts, book-keeping or taxes. It includes planning a company’s financial approach. Take a look at the tasks a CFO covers during their term.
- Overseeing the company’s finances
- Coming up with strategies to improve the company’s finances
- Reporting to the company’s top executive officer and working as one of the governing bodies
- Cost management
- Controlling cash flow
- Managing accounts
- Reviewing taxes
- Making financial forecasts
How can new CFOs ace their job role?
The job role of a CFO is diverse in its sector. It is not about fulfilling one big role, rather, it is micromanaging several small roles to paint the big picture. Being a CFO is demanding, so upskilling is a good idea.
As an aspiring CFO, it would benefit you to know a few ways to stay ahead of crisis. A fresher in this job can have an incredible learning experience. However, to truly excel in the role, you must adopt steps to boost your work dynamics.
Strategies to boost your CFO career
The CFO’s role can be overwhelming. As a new CFO, you must organise your work and resources to maximise benefits.
Communication is the key to success in any job role. As a CFO you have to interact with employees under your wing, your peers and your superior. Since the CFO is a part of the board of directors, it entails frequent communication. You must adopt a financial vocabulary that is comprehensible and effective. As an efficient CFO, you must also be transparent about the company’s financial status with the people concerned. A CFO is also the financial face of the company, so make sure that your message is clear to the investors and consumers and that there is no room for doubt.
Creativity is an integral part of problem-solving. A CFO must always address financial grievances with clarity. Finding solutions can be tedious, but thinking through and coming up with unconventional soluions will make you stand apart. A CFO must take on challenges with an open mind.
In-depth knowledge of the company
Before venturing into complex financial tasks, scouring the grounds is always a good idea. As a CFO, you will get elbow-deep in numbers. Gathering background information can help you handle things better.
Additionally, it is wise to understand the company's work ethic before you start out.
The use of technology is inevitable. Managing finances requires a fair share of technological support. You must know how to use all the modern tools to keep up with the constantly upgrading finance industry. Knowledge of cyber security is vital to all workers who handle sensitive data. And as a CFO, you will be in charge of sensitive data for many people.
A CFO must clear previous backlogs before taking up new tasks. However, you also need to identify tasks that need urgent resolution. Classifying tasks according to priority can increase productivity and make work easier on you. Categorisation is important as the CFO attends to several company aspects which may become overwhelming.
Imarticus Learning guides you on how to become a CFO with its Postgraduate Certificate Programme for Emerging CFOs. This course collaborates with IIM Indore to deliver masterclasses with industry experts. Join the 12-month programme, engage in peer learning and bring about global changes in finance. If you are a professional with at least five years of experience, this course can unlock new aspects of your career in finance. From fintech to risk management, you can count it all in, this course covers modern tools and has a progressive curriculum.