Roles can be misleading. More often than not, they are nothing more than a word that organizes where certain people sit in an office. Take for instance, the role of a CFO. Many consider the CFO as the most glorified accountant of a company, the firm’s money manager, but in reality, they are the secret to a company’s success. Bruce Besanko, the CFO of OfficeMax points this out when he stated that “as CFO, I’m in a unique position within the organization, at the absolute center of the universe. The only other executive besides me that has that same presence at the center is the CEO.”1
Of course a CFOs traditional role, namely, overseeing taxes, budgeting, accounting, financial planning, and analysis, is critical to the success of any company. When businesses fail to manage these areas they end up failing in general. However, the CFO’s role is evolving into a more robust position that is critical to every facet of a business.
A recent report from McKinsey and Company shows that “four in ten CFOs spend most of their time on strategy, transformations or [other] non finance areas.”2 The following graphic shows the current breakdown of CFOs roles in their companies.
With this understanding, companies need make the CFO role a greater priority. It is critical that CEO’s ensure that their full-time outsourced CFOs are prepared to do the following:
1.Take Assertive, proactive and strategic leadership.
2.Adopt an investor’s mind-set—and more innovative practices.
3.Embrace technological advances.
A CFO’s importance cannot be stressed enough. Every company should have a CFO that is working to adapt themselves and adapt their company for future challenges and opportunities. TOP CFOS focuses on providing you with the finest financial guidance in the industry, and we also commit ourselves to being your business partner in every step of the way to success. Reach out to us here for a free consultation on all the areas, in and out of finance, that CFO’s do best in.