Here’s what we would suggest about handling different challenges as CFO

Over the years, the role of CFO (Chief Finance Officer) has evolved from it once used to be. With changing business models, channels of distribution, and management strategies being developed, the responsibilities of a CFO have also grown wider than they ever were before. Traditionally, the CFO’s primary responsibility was associated with accounting practice, however, the role of CFO comes with more complex functions and with it, more significant challenges.

Following are few ways by which a CFO can tackle challenges:

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1. Narrow the gap between business and finance strategies

A chief financial officer’s (CFO’s) financial strategy must be aligned closely to the organisation’s overall business goals. The lines between finance and strategy are getting blurred by each day, and these two verticals can no longer operate in isolation from one another. Modern day CFOs should concentrate on creating financial policies that support larger organizational objectives.

2. Adapt to the digital world

Digital technology is completely pervasive in every aspect of finance today. Increasingly, CFOs must pay attention to technological advancements that can help and improve the financial process. The high performing companies of tomorrow will be those that are able to effectively utilize the digital landscape for the benefit of their organization.

3. Analyze financial results in a holistic way

The financial processes used by CFOs when evaluating their efficiency need to go beyond compliance regulations. Financial processes can no longer operate in a vacuum; therefore they must be analyzed for success or failure in a wider context.

4. Outsource F&A back office functions

The roles played by finance departments of companies in strategic decisions have increased, meaning less time is available for equally important but regular tasks like payments, invoicing, collections and reporting. Additionally, the most talented people on a CFO’s team often prefer working on strategic projects rather than focusing purely on transactional activities.