Page 38 - 10 Most Promising Virtual CFO Service Providers 2020

What Changes Are
Coming To The CFO
Role
any companies have a
chief financial officer
Mwho manages a variety
of functions, from overseeing
cash flow to monitoring the
business’ financial health and
taking corrective actions as needed.
However, as with many other
professions, technology and a
changing economy are leading to
the evolution of the CFO role.
Over the next few years,
companies are likely to begin
altering and expanding the
responsibilities assigned to their
CFOs, so it is wise for financial
professionals to be prepared.
Following are 10 expert weighs in:
1. More Dependence on
Technology:
CFOs are now at the forefront of
innovation in technology and it is a
unique position for them. They’re
used to driving innovation in
systems, but development wasn’t
always a part of that. With the
drive for digital change to generate
corporate efficiency, CFOs will
be more focused on data analysis.
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This will force them to reconsider
how they not only exploit
technologies but also people.
2. A Merging Of the COO And
CFO Roles
It is common practice to have a
COO and CFO serving separate,
distinct functions despite needing
an obvious alignment. In the future,
I see these positions morphing into
one. A CFO can and should fulfill
financial and operational duties
since they are so often attached at
the hip.
3 Expanded Application of
Performance-Based Metrics
The role of the CFO has always
been about numbers, and more
recently, it has been focused on
applying performance-based
metrics across the organization.
This will continue to evolve to
further include processes and
technologies to deliver these
metrics on a near-real-time basis to
further drive the value delivered.
4.Integration into Every Aspect of
the Business
CFOs now have to expand into
operations; IT and HR. CFOs
are required to be integrated into
every aspect of the business to
drive financial results in the right
direction. The role of tracking and
reporting results has expanded
to driving results, strategically
aligning with operations, inspiring
human capital and leading data
automation to boost up-to-date
information exchange for decision-
making.
5. Enhanced Focus on Strategic
Issues
CFOs used to be focused mostly
on the accounting aspects of a
business. With the rise of the
controller as a solid career path
for good accountants, CFOs
have begun to focus more on
operational and strategic issues
and are spinning off their historical
accounting duties to controllers.
CFOs will more and more become
the No. 2 person behind the CEO in
the management of the company.
6. More Responsibility for
Increasing Margins/Profitability
February 2020