The new normal of the economy is changing the CFO role from tactical to strategist

The path to it Chief Financial Officer The seat expands as the role’s responsibilities change.

growing up Accountant shortageThat’s a good thing, but it doesn’t mean the journey to leading a finance office gets any easier.

The day-to-day responsibilities of finance leaders have undergone a major shift from traditional fiduciary and accounting responsibilities, enhanced by operational and capital allocation skills and expertise and the ability to communicate effectively between departments.

Emerging alignment of end-to-end accounting processes Creative artificial intelligence (AI) tools are expanding the ways CFOs can make an impact, allowing finance departments to do less and positioning the CFO as a strategic partner and advisor to the management team.

The CFO’s role as a strategic leader responsible for roadmap planning, risk management, innovation and more business-critical initiatives is only becoming more pronounced as businesses increasingly look inward and refine their operations due to economic uncertainty.

While meeting their growing responsibilities, today’s CFO rarely finds themselves alone.

read more: Generative AI is moving finance teams from bean counter to business partner

Adopting new technology to reduce risks and increase returns

A new generation of future-proof AI tools ushers in a new era for CFOs, freeing employees from less rewarding work and leveraging their human-scale analytical strengths in ways that can achieve key business goals and drive greater efficiency.

“When you step into the CFO role and start spending more time with operational needs, internal financial needs and cash flow management responsibilities – you realize there are many facets. CFO position Cannot be seen from outside” Tim O’LearyCFO’s Priority Technology Holdingstold PYMNTS in May.

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And he knows. A CFO transplant, O’Leary spent two decades as a banker before moving into the chief financial position in September.

PYMNTS is tracking and increasing A generation of CFOs Its stitching cost The new „new normal” seeks to modernize business processes and reduce operating costs to meet economic uncertainty and ongoing digital adoption.

Because in today’s environment of catastrophic bank failures, rising interest rates, reduced credit availability, inflation and recession, ease of implementation of digital wins in processes like accounts payable (AP) and procurement will help companies build and scale.

Darrell WalshCFO at The Clearing HouseIn May he explained to PYMNTS that his focus had changed: How do we do it? Automatic What are some things that make processes better, and where do we get efficiency and effectiveness in the organization?

„Historically, the finance function and the CFO, in particular, have been about reporting results, but now moving forward it’s more of a strategic advisory role,” Walsh added. „How do we add total value to the management team and the organization?”

Creating future financial leaders

In a landscape where efficiency emphasis and process improvement can further drive competitive differentiation, the expanding CFO role is attracting individuals from diverse backgrounds, experience levels and skill sets outside of traditional accounting. They can uniquely use these qualities to enhance their internal growth machinery.

By being clear about strategic priorities and business assumptions and socializing them with the rest of management, today’s CFOs can tap modern solutions to accelerate sustainable growth in the most challenging times.

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„Part of a CFO’s role is to drive that organizational alignment and support Business leaders Connect their upstream activities within your organization to downstream financial results, so everyone understands how what they do affects the organization in a measurable, definable way. Nathaniel KatzCFO of an eCommerce software provider Smoketold PYMNTS in January.

Generative AI tools can help finance teams make real-time decisions and allow cross-departmental agility among decision makers by disseminating relevant and disparate financial information.

However, CFOs should exercise caution when embracing new technologies and ensure that any AI strategy is aligned with existing business strategies.

CFOs must have a clear view of the company’s risk profile and understand the potential for risk to negatively impact business strategy and derail the company’s success.

With the right skills, experience and mindset, the stage is set for emerging CFOs to become an even more valuable asset to their organizations.

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