CFOs have always been seen as valuable players, but that role is even more significant than it was first thought to be. Not only do these leaders play a pivotal role in the development of the financials of the company, but also in the long-term strategies and methods that are financial and non-financial.
As companies grow and develop, the need for these professionals becomes even more critical. This bigger-picture thinking focuses on the need for qualified CFOs and what their involvement really means as far as the success of the corporation. Their role is much more meaningful than simply identifying and implementing financial policies. In fact, their methods and systems can play a huge role in whether or not the company succeeds or fails.
Key Areas of Influence
CFOs are historically known for their impact on the financial aspect of the business. While this is certainly true, there are other areas that CFOs can influence that will impact the company well into the future.
Some of the critical areas that CFOs influence include:
- Raising capital
- Creating reporting systems
- Establishing a company strategy
- Maintain balance in investment growth
- Preserving capital for future opportunities
What this really says is that CFOs are not just part of the financial strategy, but rather the finer details of what makes a corporation really grow and prosper. Companies can actually accomplish more by having a skilled CFO in their corner.
CFOs have always been identified as key members of the corporation, but perhaps what is being learned is just how far-reaching their influence can be. CFOs bring a certain skill-set to the table that not only changes the financial climate of the business but can also influence how the company grows and reaches milestones. They are key parts of the team that have valuable skills beyond financial protocol.
Essentially, understanding this level of influence that a CFO has can help companies identify the best candidates for the role and also have a better understanding of how their role will be a critical part of the entire corporation.
You may also enjoy, How a Financial Executive Manages Risk in a Disruptive World.