Earlier CFOs have emerged from the accounting ranks, it was necessary for them to have accounting background, but now the things are changing with advancement in technologies.
FREMONT, CA: Usually, CFOs have emerged from the accounting ranks, with in-depth knowledge of reporting requirements, accounting standards, and corporate finance strategy. But with changing time the role of CFOs are also changing and now only accounting expertise is often not required.
Changing Role, Evolving Expectations
Most of the traditional sectors of finance like treasury, tax, and investor relations have grown increasingly complex, demanding more focused expertise because the role of the CFO has broadened. Most of the practical work related to accounting section is done by chief accounting officers and controllers. It is necessary to have independent certified public accountants review financial statements to regulators, only if the public firms are registered with the U.S. Securities and Exchange Commission.
Critical Skills for the New CFO
With the advancement of technologies, the role of CFOs is also changing. The day-to-day financial focus is still needed but is diminishing in proportion to the demands of business leadership. Fundamental finance skills are always paramount, but other skills are necessary to provide the service that the CFO of today and tomorrow is expected to provide. Here are some of the required skill set of the modern CFO:
• Leadership – If a CFO wants to become an effective business partner, then they must have excellent communication skills and leadership qualities. They must have the potential to give proper advice to people as well as can provide a voice of reason. Most of the time, they have to lead large groups. They are also responsible for translating detailed information into clear, concise, and accessible messaging.
• Strategy – Other important works CFOs have to do is support strategy development and then also help in enabling its execution. The CFO also helps in prioritizing and ensuring the strategy can be funded. This also includes communicating the plan and progress against it to external stakeholders and investors.
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