All Entrepreneurs don’t necessarily possess skill of effective cash management and then they entrust this important task to qualified professionals called Chief Financial Officers who have extensive experience in the field of finance. Profitability apparently doesn’t mean company is progressing. Every investor will look at the cash position of the company he is investing in and want to see how that is being effectively managed.
CFO with his financial and leadership skills can play an eminent role in managing the company finances. Effective Responsibilities of the CFO include forecasting and budgeting, strategic financials decisions, mergers & acquisitions and so on.
Artificial Intelligence, being a market pro have a significant impact on the growth of the company. Amazon, one the trillion-dollar company has implemented around 45,000 robots in various delivery warehouse around the world for effective managing the delivery system which significantly improved their delivery timings.
Alongside being a finance guy, CFO also inherit those skills which help him develop road map to get to companies’ vision. Quality of each CFO will depend on the state of the company and its vision and mission for the future. Qualities of the CFO include:
Leadership: A CFO must be well competent to take risky decisions during crucial stages of the company. He must be able to foresee the consequences of his decisions and its impact on the company’s growth.
Collaborative: Its highly impossible to run a company single handily and CFO who is entrusted with managing the entire finance division must be team oriented. He must delegate the tasks and ensure they are duly completed within the timeframe set and are organised in given manner.
Knowledgeable: Reading numbers may not seem to be an effective quality of a CFO, but he must also try to understand and analyse the possible impact. A CFO must be a specialist in understanding economics, demographic, socio cultural behaviour and its impact of the company’s success story.
Disciplined: Every decision taken by a CFO will have positive or negative impact on the company’s existence. No decisions are taken without careful analysis of the possible consequences. A disciplined CFO place his honesty and trustworthy above all levels and is always high on integrity.
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