When you think of a Chief Financial Officer (CFO), you probably think of the individual within the business who oversees the monthly debits and credits that flow through the balance sheet and income statement, reviews the monthly financials, and advises an executive team and/or board about the current state of the company’s financials. While these tasks remain a primary responsibility of the finance department, the role of a CFO has evolved significantly over the past few decades from being a financial gatekeeper to a strategic business partner. The role has expanded to include strategic planning, risk management, and more.
Cfo’s Today
Today, chief financial officers are expected to take on a deeper role. They are seen as strategic business partners who work closely with other executives within the organization to drive business growth, forecast business initiatives, manage risk, provide financial insights, navigate complex business challenges, and make informed decisions.
CFOs are also involved in a range of activities including strategic planning, mergers and acquisitions, and capital investment decisions. The visionaries within the organization may come up with the ideas, but it is the responsibility of the CFO to not only measure the return on the investment of the idea but also ensure that the initiative will not create unnecessary risk.
In order to be an effective strategic business partner, CFOs must have a strong financial background, strong communication, and leadership skills. They must be able to articulate financial information in a way that is easily understood by non-financial executives, and they must also be able to collaborate with other departments within the company and build relationships with external stakeholders. In addition, they must be adaptable and able to navigate a rapidly changing business environment.
Recap
While a CFO will always be responsible for ensuring the accuracy of financial statements, the role now requires the individual to become a strategic business partner responsible for financial strategy. It’s no longer merely about overseeing money flow for an organization, it’s leading that organization from a financial standpoint in order to make informed business decisions.
Through the CFO Advisory at Aligned CPA, our objective is to become a strategic business partner for the clients we serve. One of our core values is “Your success is our success” and we live this every day. If you are looking for a strategic business partner who will help you navigate financial challenges and/or assist with driving business growth, we can help!
Tax Strategy & Planning + CFO Advisory Services
= Perfect Alignment
Cessie Cothran
MBA Director of Advisory Services
Combining the CFO Advisory with tax strategy creates the best opportunity for financial success. We like to call it being perfectly Aligned. Our clients know they have us as a partner, helping them to feel secure about their financial future.