chief financial officer Archives

The rise of the influence of the CFO

“From back-office accountant to front-line executive, the rapid rise of the chief financial officer is unrivalled by any other corporate role,” wrote Jason Karaian, the author of What CFOs do, the influence they have, and why it matters last year. His statement goes generally uncontested: today’s chief financial officer is seen as occupying a position of prestige. In fact, Karaian goes on to argue: “with access to every facet of the business, chief financial officers now wield a level of influence matched only by chief executives.”

The top financial spot is a far cry from what it was once was. Where it was once seen as undesirable to be labeled as a “number cruncher’, this term now holds increasing weight. Karaian argues the change has come about with today’s emphasis on big data and technology.

“As the volume and velocity of data expand exponentially … companies seeking to harness the insights within the data will inevitably turn to their chief financial officers for guidance, boosting their status even further,” he writes.

But just how far is that impact felt, and in what ways is it manifested? As the chief financial officer of a particular company, where will your leadership take you?

Departmental influence

At the most basic level, the chief financial officer’s influence is felt across every department in the company. Your leadership helps shape the parameters for the overall company strategy; this in turn trickles down to departmental planning.

Not only do you determine how much each department should spend; you’re also helping them recognize how best to use their resources. Part of the chief financial officer’s role is to help each department head recognize how best to use their resources to meet their objectives, and ultimately move the company strategy forward. In order to provide effective guidance in this area, you need an almost intuitive understanding of the company’s goals.

Top management influence

As the chief financial officer, you already occupy one of the most senior roles in the business. However, being in this role also increases your chances of taking the top executive spot. The number of CFOs who are promoted as CEOs are on the rise. Karaian notes that the promotion often takes place after the chief financial officer has completed a stint in general management at a regional or divisional level.

“And so the odds that a senior executive spent time in the finance function on the way up the corporate ladder are rising,” he says. “Thus the CFO’s methodical, data-driven approach to decision-making is gaining proponents over the archaic “gut feel” school of management.”

Board influence

A chief financial officer once aspired to a role on the board as part of their retirement plan. But the demand for CFO participation on the board has grown to such an extent that they are now given directorship positions much earlier in their careers, sometimes within a year or two of assuming the position. And this creates a new avenue for growth and influence: the board chairman position is now a much more viable aspiration for a chief financial officer than it once was. Suzanne Wood of recruitment firm Russel Reynolds told Quartz magazine:

“In a chairman role, you look for somebody who’s prudent with a low ego, good judgment and is a facilitator. The low-ego, second- in-command nature of a CFO sits very well for the non-executive chairman brief. We’ve had CFOs in their early 50s make the move into chairmanship.”

From operational influence to top management and board influence, today’s chief financial officer sits in a position of increasing power. With this comes the increased responsibility for sound technical judgment and ethical decision-making. If your company is looking for a part-time or interim chief financial officer with both those qualities, contact The Finance Team. One of our associates can assist your company in the time and manner you need it.

February 19, 2016 / No Comments /

Six tips for finding funding for your business with the help of a part time CFO

Got mates? Research has shown that the biggest source of financing for small business owners is friends and family. But sometimes that well is running dry, or the nature of your financial need has outgrown what your acquaintances can offer you. Whether you’re starting up your business or expanding, there are certain times in the life cycle of every company when you look to attract finance from the formal sector. Here are some things to bear in mind as you go about it.

Consider bringing on a part time CFO to help you attract the finance you want

In order to convince banks that your company is worth lending to, you need to speak their lingo. Hire a part time CFO or equivalent to help you get the documents together that tell a compelling financial story about the business. Not only can this person help ‘write the story’, they can also ‘sell’ the company to future investors.

Identify your collateral

This is one of the first laws of finance: your financial institution needs assurance that, if things don’t go the way you expect, there will be some way of getting their money back. Your part time CFO should spend some time evaluating your collateral and determining what can be offered to the bank to the value of what you are hoping to borrow. This could come in the form of property, equipment owned by the business, or existing savings. The Small Enterprise Development Agency (Seda) makes this observation: “The smaller your business, the more collateral the bank will demand, because you are perceived as a high risk. Ironically, of course, the smaller you are, the less collateral you are likely to have.” Now could be the perfect moment to call in favours from friends or family members – they might not have money to lend you, but could own property that they would allow to stand as guarantee.

Prepare a detailed business plan and presentation

By this stage, you’ve likely already put together a business plan. But your part time CFO should spend some time drilling into the details. Banks and other lenders will want to know how much you need to borrow, when and why.

Role play

Have your part time CFO play the part of the banker or loan officer, and interrogate your business plan. He or she should criticize where necessary and ask you to motivate for your decisions. Once you can confidently hold your own in this setting, you’re more likely to feel comfortable and prepared when you meet with the real lenders.

Get your eggs into as many baskets as possible

Apply to several institutions at once. The review process is lengthy and tedious, so you can’t afford to apply to your lenders one at a time. You’ll notice similarities in many of the loan application processes, but enlist the assistance of your part time CFO to make sure you spot the differences too. Take the time to write out a strong motivation upfront – this could favourably predispose the decision-maker to your request.

Think wider than banks

In today’s tough economic environment, small business divisions in banks are becoming more and more picky about who they award loans to. So, the big banks are the obvious place to start, consider other options, listed below:

Enterprise Development programmes. Many big corporates have begun to fund small businesses as part of their Black Economic Empowerment (BEE) requirements. Have your part time CFO take a look at your black ownership and turnover in order to see if you qualify for assistance from such an organization. Generally, if your company has 51% black ownership and a turnover of less than R50-million you could qualify as a beneficiary.
Government-mandated small business loan organisations such as SEDA and the National Empowerment Fund also provide funding to qualifying businesses. Your part time CFO should determine whether this is an option for you.
Venture capital funds. Investment companies that see potential in good businesses will trade equity for a share in the business. If you’re considering this route, your part time CFO should delve into the suggested terms of engagement. Ensure this is a partnership that you can live with in the long-term.

If your business is looking to attract funds and you need the help of a professional to do this, get in touch with The Finance Team. Our finance executives can provide you with interim or part time assistance according to your needs, and help you secure the money to grow.

October 27, 2015 / No Comments /

Leadership Skills: what a great Chief Financial Officer brings to the party

The role of chief financial officer was once interpreted as fairly narrow. He was seen mainly as a controller: the guardian of the company coffers. Nowadays, that role has undergone an evolution. Instead of being the back-office person he was once was, he is now expected to partner with the CEO and steer the business in a specific direction. The chief financial officer now plays a vital leadership role within the company.

EY’s publication ‘The DNA of the CFO’ puts it this way: “While commentators have long been touting the increasingly strategic role of the chief financial officer, the global economic downturn has ramped up expectations of CFOs and the finance functions over which they preside. Historically, chief financial officers have themselves tended to drive the direction of their role. But with greater internal demand, they are now in the spotlight providing financial and strategic insights to boards and executive teams keen for clarity amid the economic uncertainty.”

When searching for the perfect CFO for your business, you’re no longer just looking for superior technical skills and financial shrewdness. You’re looking for someone who exhibits the leadership traits of one at the helm of your organisation. The report indicates 76% of CFOs interviewed believe that non-financial metrics are becoming increasingly important. So they’re acknowledging the need for a more well-rounded skill base, and gearing themselves up for it. Here are some of the skills that a great chief financial officer can offer today:

A new dimension to corporate strategy leadership

Research among chief financial officers globally points toward a clear trend, notes EY. “In addition to their traditional role as head of finance, CFOs are increasingly taking the lead in corporate strategy development and business stewardship. A quarter of chief financial officers spend more time (60%) on broader strategic issues than on financial management, and they expect this trend to continue. Sixty–two percent of chief financial officers said they expect to spend between 60 to 80% of their time on broader strategic issues in the future.

This means that your senior management team can look forward to a unique set of insights when it comes to planning. Your chief financial officer will be able to give a financial perspective on long-term planning, making plans more realistic and likely to succeed.

Communication to the external marketplace

That’s right, we’re talking about stakeholder relations. The chief financial officer carries with her the gravitas afforded to a subject-matter expert. When it comes to financial considerations, she has the last word. Because of this, she is perfectly placed to communicate with stakeholders about the financial status and needs of the business. She should have both the technical and verbal skills to represent the organisation’s strategic progress to external stakeholders.

“High performing organisations manage their stakeholders effectively through regular and transparent communication and reporting that identifies and explains contingencies for managing risk and communicates regulatory change before it impacts the organisation,” said the EY report. “The chief financial officer is in a strong position to support this need for clearer communication and to build stronger relationships with stakeholders.”

Change management skills

Techtarget.com defines change management as “defining and implementing procedures and/or technologies to deal with changes in the business environment and to profit from changing opportunities.” If ever there was a time that your business needed to profit from changing opportunities, it’s now. An insightful chief financial officer will guide your business as to how best to react to change, and how to optimise your resources as you do so.

If your business could benefit from the unique set of leadership skills offered by a chief financial officer, but you don’t need someone full time, consider bringing on a part-time finance executive. Give us a call to find out how The Finance Team’s network of associates offer part time and interim financial leadership solutions that can be tailored specifically to your company’s needs.

September 21, 2015 / No Comments /

Learning lessons from South Africa’s “top” chief financial officer

What does it take to be seen as South Africa’s foremost chief financial officer? This year’s CFO of the year award (as presented by the association CFO South Africa) was bagged by Alexander Forbes’s Deon Viljoen. The chief financial officer of one of the country’s largest financial risk services companies, Alexander Forbes, was selected from 32 CFOs who were shortlisted for the award, all of whom were interviewed extensively by a panel of respected finance professionals to find a winner.

So what was it about Viljoen that saw him nab this prestigious award? From the published interviews conducted with him, and findings from the panel of judges, we’ve summed up a few qualities that made him stand out.

A focus on sustainability. In seven years as chief financial officer of Alexander Forbes, Viljoen guided the company through both a delisting and relisting: a mammoth task by any reckoning. Viljoen said his focus throughout the processes was on sustainability and seeking to create satisfaction for everyone. He sought for “sustainable solutions that accommodated all stakeholders” he said. It takes discipline to look at a situation in terms of its impact on all the parties concerned, rather than from one or two particular vantage points. That practice obviously paid off, with the company’s profit increasing by a cumulative 43% between 2012 and 2015, and operating profit growing from R1.03-billion in 2014 to R1.14-billion in the 2015 financial year. The ‘sustainability’ aspect of Viljoen’s approach is evident in the consistency of margins achieved over time: the operating margin for the group has increased by about 25% every year for the past five years.
An ability to prioritise taking the right risks. At one stage in time, Alexander Forbes was looking at a listing or trade sale, executing a capital restructure and selling off a big business (Guardrisk) all at the same time, notes CFO South Africa. Viljoen noted that this was a tough period, but his ability to time and juggle the risk meant that the brand came out unscathed. “Our clients trust us and I feel that I contribute to that,” he said.
Don’t pass the buck. When accepting his award, Viljoen said there were two kinds of challenges in life: those you inherit and those you voluntarily take on. “Both are inspiring … they come from different parts of your being,” he said. This chief financial officer draws the positive from all forms of challenges. He owns all the “problems” his role encounters, including those he did not cause.
Learn lessons from your subordinates. Viljoen’s example teaches that a chief financial officer should keep learning from those who surround them, despite occupying one of the most senior and respected positions in the company. Never assume you know more than anyone else in the boardroom, or that you can’t learn anything from a technical worker or line manager. Maintaining an attitude that conveys “I can learn from you” no matter who you are interacting with, will help you maintain good relationships and simultaneously ensure you keep growing professionally. “You pick up wisdom from those who work for you and those who work with you,” he said.

At The Finance Team we develop professional excellence by learning from the best in the industry. If your company needs the assistance of a part time or interim finance professional, be they a chief financial officer, finance manager or project accountant, give us a call.

September 14, 2015 / No Comments /

What a Chief Financial Officer can do for your business

You may be familiar with the quip: “When times are tough, the marketing budget is the first to go”. If you have any friends in the advertising field, you’ll know that they often feel like they’re walking a long road uphill. “Even when we create brilliant adverts that bring in loads of new business for the company, the CEO dismisses it as an ‘upturn in the economy’”, these friends can be heard to say. “We’re never fully appreciated for our contribution.”

Part of the problem, of course, is measurability. Unless you’re surveying every new customer about whether they’ve chosen your product as the result of an advert, it’s impossible to know – beyond reasonable estimations — whether sales are attributable to an advertising effort or another coincidental external factor. But digital advertising has helped to change this. Nowadays, companies can see exactly how much interest an advert is generating. They can measure the number of clicks, the amount of time a person spends on a page, and – if sales are being driven online – they can often determine whether or not this behaviour translates into a sale.

In a similar way, it’s been historically difficult to determine the impact of a great CFO on a business. If a company does well, it could be due to the combined leadership of the senior management team, or a favourable turn in the environment, rather than thanks to the chief financial officer alone. But nowadays, increased measurability and research techniques have enabled analysts to get a better idea of the impact that a fantastic financial leader can have on your company. Using that rationale, here are some valid (and often un-thought of) ways in which a great chief financial officer can influence your business.

Find and retain great talent

If you’re looking at hiring a chief financial officer for the first time, chances are that your company is currently growing, and will continue to do so. With the global economy finally on the uptick, projections for the South African GDP are slightly more optimistic for the upcoming years than the last. Absolutely key to your success is finding and keeping the right people to grow with you. And that’s where your chief financial officer comes in.

According to a survey cited by the Controllership Group, 66% of finance chiefs are concerned or greatly concerned about talent acquisition and retention. This obviously applies to the finance department, which your CFO will head up. But it also applies to their savvy when it comes to increasing annual pay and structuring bonuses and incentives for the entire company. A clued-up chief financial officer will know how much to offer to keep employees happy and motivated without putting the company under strain in the process.

Find the right balance for advertising spend

We’re all well aware that the finance department and the marketing department often view their objectives as separate and almost oppositional in nature. A great CFO, however, recognises the importance of the marketing effort and drives understanding and collaboration between these two departments. As a result, she is often able to determine the optimal amount that should be apportioned to marketing efforts. The payoff is growth at the right time and at the right pace.

Use technology to create forecasts that are more accurate than ever before

A valuable chief financial officer has harnessed the latest tools that technology has to offer. As a result, he can develop reports based on real-time, rather than historical, information. His forecasts are reflective of the most recent, relevant data rather than outdated material that only offers limited insight for the future. This optimises cash flow and enables the company to save sufficiently without wasting its resources in a cheque account.

A great chief financial officer helps keep staff happy, optimises marketing efforts and budgets efficiently. Contact The Finance Team to find out how this kind of resource can be available to your company on a part-, full- time or interim basis depending on your needs.

Photo credit: © Christian Delbert | Dreamstime.com

September 1, 2015 / No Comments /

Bringing lipstick to the boardroom of the tech world: Microsoft’s chief financial officer Amy Hood

The tech world has historically been a male domain, but software company Microsoft took its first female chief financial officer on board two years ago and hasn’t looked back.

Since appointing Amy Hood as chief financial officer, Microsoft has risen on the Fortune 500 ranks from number 35 to 34 and now 31. With a market cap of 373-billion, the future looks bright for the once flagging business, which currently enjoys a price earnings ratio of more than 31, meaning investors see a long and illustrious future for the company.

Hood has studied at some fittingly prestigious universities, with a degree in economics from Duke University and an MBA from Harvard. She’s been at Microsoft for about 12 years now, with her previous role being that of chief financial officer of the Microsoft Business Division. She turns 43 this year.

With competition for the role of Microsoft’s top finance executive being steep, what helped Hood bag the position? Her previous boss, now the CEO of Nokia Oyj, said it was a combination of wit and a rare grasp of long term business-thinking: “Amy always impressed me with her incredibly sharp analytical mind combined with a nuanced understanding of business strategy, and a willingness to take calculated risks,” he said.

Calculated risks

Hood’s flair for calculated risks is made apparent in some of the mergers she has presided over in the business. As chief financial officer of the business division, Hood was central in company’s takeover of various key companies such as Skype.

While Microsoft suffered from flagging demand in word processing and spreadsheet applications, Hood’s division boosted sales in Office productivity programmes. In her last year of tenure in the division, they amassed $24-billion in sales and $15.7-billion in operating profit.

“Sales in the Microsoft Business Division increased 24% and its operating margin widened four percentage points in the two fiscal years through 2012. That contrasts with the Windows unit, where weak PC demand led to revenue declines and narrowing margins in that period,” notes Bloomberg.

According to colleagues, Hood has also long been a proponent of the cloud. With the entire computer storage industry now moving firmly in this direction, it’s another example of her foresight.

Channeling funds to innovate

It’s also clear that, in the technology space, Hood understands the importance of innovation. Under Hood and Satya Nadella, the company’s new CEO, Microsoft has seen new gains, prompting Fortune magazine to say that Microsoft is “getting its mojo back.” There is a new sense of innovation in the once stale company, said Fortune, with it recently taking a big bet on virtual reality and gaming, with its new product the Hololens. Channeling funds into this area already looks set to pay off.

“Despite competition from Apple’s iPad, Microsoft’s tablet business Surface continues to grow and shows signs of being the company’s next billion dollar business. As more enterprises look to the cloud to power their businesses, Microsoft’s commercial cloud business is booming, with revenue growing by 128% in Q1 2015,” observed the magazine.

The gift of the gab

Perhaps a tribute to her gender, Hood has also been hailed by various sources as a great communicator, one who is likely to be able to sell a vision to investors. “She’s very articulate, which is going to be important,” said one analyst. ““She’s had extensive experience talking to investors,” said another analyst who has had dealings with her. “Talking to Wall Street as Chief Financial Officer will come easy to her.”

With Hood at the financial helm, the legacy of software great Bill Gates looks poised to keep going from strength to strength – an outlook that did not look likely some years back.

If your company is looking for inspirational financial leadership, contact The Finance Team. We have a network of executives who can provide services as part time or interim chief financial officers as and when your company needs it.

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August 18, 2015 / No Comments /

How a project accountant and a CFO are a match made in heaven

It’s difficult to say whether an algorithm can accurately predict the suitability of two romantic partners, but that’s exactly what many dating sites around the world attempt to do.

Applicants fill out pertinent information that include “markers” which provide indicators for match suitability. Some of your markers might be that you love the outdoors, enjoy literature, like running and live in Johannesburg. A potential match would be assessed for the number of markers they have in common with you. The more markers a person shares with the ones you are seeking, the more happy the match is anticipated to be. Theoretically, if a person’s markers met all the criteria you were seeking, it would be a “match made in heaven”.

If the same theory were to be applied in the business world, the project accountant and the chief financial officer would surely be a highly compatible match. If your chief financial officer is looking for a suitable “mate” — someone who can meet all of her needs or delight her senses — then hiring a project accountant would be a move orchestrated by Cupid himself!

Here are some of the “markers” of a CFO that would be met by a project accountant:

1. Helps the CFO plan finances. The CFO has overall jurisdiction for the planning of finances, but she needs help ensuring projects stay on target. Not having her nose in the details, it’s difficult to accurately anticipate what is needed for a single project. The project accountant, on the other hand, is in the coal face: he knows the intimacies of the project and exactly what needs to be allocated where. The project accountant can ensure that accurate cost forecasts are put in place.

2. If one of the main markers of a chief financial officer is to stay on budget, the project accountant will perfectly complement this need! Not only is the project account responsible for staying within budget, he’ll put systems in place to track expenses as they go. The result? No nasty surprises at the end of the project or financial year when things didn’t quite go “according to plan”.

3. Communicate, communicate, communicate! They say that all successful relationships have a foundation of healthy, open communication — and that is exactly the mandate of the project accountant in his role with the CFO. The chief financial officer expects information to reach her in a timely, sustained manner — and the project accountant is there to do just that. Together they use the latest data and information to shape decisions going forward.

4. If your CFO is a “lonely heart” battling to keep the wheels turning or just needs the assistance of someone compatible with him or her, contact The Finance Team. Choose a finance executive who specializes as a project accountant and makes a good personal team with your CFO. Even though you might not see yourself as a match-maker, this is one of Cupid’s jobs that you just may want to take on.

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August 5, 2015 / No Comments /

The extinction of the chief financial officer as a simultaneous director

Some years back, it almost went without saying. If you were appointed a chief financial officer, you would almost certainly also be appointed a member of your company’s board. As the most senior financial executive in the company, it seemed logical that you would have input at the most senior level. For years, chief financial officers have participated in board meetings and helped to make strategic decisions that affect the whole company. But today, all of that is changing.

It started in 2002 in the USA. The Sarbanes-Oxley Act passed that year stipulated that stock exchanges in the US require that the majority of listed company directors be independent. Since then, the number of chief financial officers appointed to the boards of listed companies has drastically decreased.

In 2012, The Wall Street Journal pointed out some research conducted by executive recruitment firm SpencerStuart. According to this research, only 19 chief financial officers sat on the boards of Fortune 500 companies. That was down from 37 in 2005. And all of those chief financial officers had joined the board more than a decade previous, before the Sarbanes-Oxley Act was passed.

The cost of independence

In 2009, the King III report — the defining word on corporate governance in South Africa – outlined similar requirements. The report requires that boards are comprised of a majority of non-executive directors. Of that, the majority should be independent – that is, they should not be employed by, or hold shares in, the company.

In a commentary on the report, auditing firm KPMG says that this requirement has an impact on the companies trying to comply with it. “Boards may encounter difficulty in having sufficient independent, suitably skilled and demographically acceptable directors,” it said.

And this change has implications for those serving on the board as well. KPMG observes that there is an increased time requirement for non-executive directors to fulfill their duties, because of their lack of familiarity with the environment. Reporting on the effectiveness of the company’s internal controls, for example, would take longer for a non-executive director than one who knew the company’s systems. “This will impact on both the cost of directors and management time,” said KPMG.

Conflict of interests

Why all the hassle and extra expense then? Isn’t it just easier to keep executives who are familiar with the environment such as the chief financial officer on the board?

For many companies, the answer is no. Keeping people like the chief financial officer out of the boardroom means ensuring that conflicts of interest are kept out of board decisions. Maxwell Murphy for the Wall Street Journal explained. “Independent boards are seen as less likely to harbour an entrenched management team that, for example, wants to avoid even attractive mergers that would see them lose their jobs.”

Paul Hodgson, chief research analyst for governance firm GMI Ratings went one step further.

Naming the sitting chief financial officer to the board of directors is “a waste of a board seat,” he told the Wall Street Journal. Including a chief financial officer on a corporate board calls into question the relationship with the audit committee that oversees company financials and the CFO’s performance, Hodgson said. A better approach is to simply have the chief financial officer available for questions on an as-needed basis, he added.

There appears to be a growing trend of chief financial officers joining the board after retiring. That way, they are able to offer a wealth of knowledge while also maintaining the company’s independence.

If your company needs a CFO on an interim or part-time basis, get in touch with The Finance Team. We have a vast network of highly qualified and experienced finance executives who can assist your company for the time that you need it.

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April 29, 2015 / No Comments /

Three traits of a great chief financial officer

A google search will reveal that the position of chief financial officer is one that is highly sought after. Each year, thousands of hopeful young students enroll as accounting students with the aim of one day filling that role. In the business world, the position of chief financial officer remains one of the most prestigious positions in the company. So what if you’re already there? What if, after years of working away at the grindstone, you’ve finally been appointed at the head of the company’s finances? Have you received an automatic ticket to success? Some might pat themselves on the back in the self-congratulatory acknowledgement of having “made it”. But great leaders know that you’ve never made it. As a chief financial officer, your responsibility to strive for betterment is stronger than ever before.

The fact is, that chief financial officers are a dime a dozen. Every company of a certain size needs one. In fact, there are about 500 000 companies in South Africa, and every single one of them has someone playing a finance leadership role. So now that you’re one of this group, it’s your responsibility to ensure that you stand out from the crowd.

There are several examples of excellent financial leaders to follow: people who have managed to turn companies around and lead businesses into great prosperity. Here are a few traits that the great CFOs have in common.

Forward thinkers. Great chief financial officers are constantly looking ahead. Every time they contemplate a decision, they think: “What does this mean for the future?” They view the business in terms of its envisaged potential, rather than what it is at the moment. If great chief financial officers were road builders, they would build roads with space to expand by three lanes on either side. They put processes and systems in place that accommodate for the future growth of the business.
Performance enhancers. The traditional chief financial officer was a financial controller. He or she put budgets and forecasts in place, and then tracked expenditure to keep it in line with budget. While this remains an important part of the role of the CFO, it has expanded far beyond that nowadays. A great chief financial officer doesn’t monitor the business for bad behavior and crack a whip if a department steps out of line. He or she aims to enhance the performance of departments and the business as a whole. He partners with the CEO to focus on how to grow the business, and how to provide the finances to do so.
Quick adapters. A great chief financial officer is able to react quickly and appropriately to change. This requires a few key traits from him or her. Firstly, it means they’re up to speed with structural and legal changes that will affect the financial performance of the business. This means knowing about changes in accounting laws, tax requirements and financing rules.

It also means being comfortable with technology. A chief financial officer should be an expert in the software and systems the company uses to manage its finances. When the system changes, the CFO should be the first to know and understand it.

Lastly, this means anticipating changes in the environment. A great chief financial officer knows what’s going on in the world around them. They look forward to economic growth or stagnation and how it will affect the business. They draw on their knowledge to react positively to change.

Does your company need the influence of a great chief financial officer? If so, The Finance Team has your answer. We have a network of highly qualified finance professionals who can provide acting CFO services to your business for the amount of time that you need it.

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March 5, 2015 / No Comments /