What does (not) CFO do?
Even if there are differences per group and enterprise structures, CFO leads financial affairs along with IT, Law, Risk Management, Direct-Indirect Buying and Human Resources departments and plays an effective position in strategic management and planning by specializing in firm sustainability. Basically, CFO has three completely different heads. These are execution, supervision, and counseling. We are able to clarify execution function as providing security of economic charts and managing the cash that’s the vital level of an organization in an optimum way. Supervision duty consists of; controlling the expenses of some departments to see if these are used up in response to decided regulations and auditing operational processes by a deliberate and unplanned way to keep away from corruption possibilities. And for counseling duty, we will exemplify issuing opinions particularly to the Board, CEO and all other managers about buyer-supplier enterprise partners, new business areas and products, incentives, firm and department performances. CFO is the eye of the Board in the company and reliable business consultant of CEO with all these attributes.
Assist of the Board and CEO may be very critical
Help of the Board and CEO is probably the most importing thing for CFO to fulfill all these duties and responsibilities in a proper way. Because many of the assignments that sound good and asked to be carried out, can’t be completed because of lack of assist on inter corporate conflicts and other reasons. We can type the side effects of this kind of negative situations as a rise in company risks and miss the opportunities.
How CFO’s can determine priorities?
And this question is a very powerful topic that CFO ought to pay attention to scientific and structural approach and possibly is competence in the dedication of a successful-unsuccessful CFO. It’s not a very rational habits to anticipate managing all these talked about totally different experience areas and subjects by one person under normal circumstances till CFO determines the proper priority and use the money supply and workforce of the corporate in an accurate way. S/he can still handle his profession in a proper way and, the truth is, s/he can still enjoy it. These duties handled by him/her are divided into 4 groups in accordance with significance and urgency, and CFO ought to distribute these non-stop tasks in a correct way.
Urgent and necessary subjects
Urgent but unimportant subjects
Non-urgent but necessary subjects
Non-urgent and unimportant subjects
CFO’s definitely give primacy to “urgent and essential subjects” and should by no means work on “non-urgent and unimportant” subjects. However the level that makes the distinction in that is the time s/he spares time for “non-urgent however essential subjects.” The quintessence for this one can be; observing the personal and professional development of the employees from the lowest to the highest level that is managed by her/him and contribute in particular person if possible. Even when this duty is severe and lengthy-termed, the return of it is high. Because the more s/he has a better and an equipped team, the more they will fulfill the complex duties and responsibilities which can be provided.
Lesson: CFO should determine the priority in a proper way and may invest in the well-selected team. Otherwise, the occupation that CFO do may become one of the riskiest profession.
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