Thirty years ago, the role of a CFO was reasonably straightforward with three key take-ups; keeping financial records of the company, reporting the findings, and advice on financial, legal matters. CFOs were typically statistic-cross-makers who were behind the scenes and who, for budgetary reasons, said “no” to stuff. The rest of the C-Suite had the strategic decision-making tasks leaving the CFO to do more than anything else.
But in the thirty years following, CFO’s duties have been appreciated. They have worked in large multinational corporations ranging from $250 to $900 million and where they have led simplification projects in countries like the United Kingdom, Germany, Belgium and Hungary across geographically different financial teams, due to the significant shift in the CFO’s and finance ‘s expectations. Today’s CFO varies in several meaningful ways from yesterday’s CFO. Whereas yesterday’s CFO was more supportive, today and tomorrow’s CFO has crucial strategic importance for a firm. CFOs today lead the companies in which they work and drive progress, and that is right, despite the rapidly evolving market climate in which we operate.
The historical tasks of the financial mechanism such as accounting records, financial analysis, and law enforcement are, without a doubt still relevant. The responsibilities remain vital to the project and fall in the hands of the financial staff, and ultimately of the CFO who oversees the team. But while still relevant, the CEOs now take these tasks for granted. This does not mean that they are less relevant; it is only now that they are known as minimum financial requirements.
Financial support for crucial functions, such as trade, business and manufacturing, needs to be integrated throughout the company. Commercial efficient financial teams have dedicated financial analysis and support for the primary business functions. This opens the conversation between finance and business and facilitates more robust data exchange between business areas. This improves the transparency of tasks for its financial assessments and allows the financing team to provide more detailed statements for better market understanding.
It is clear that CFO’s play a significant role in deciding financial matters in an entity, thus, the overall impact of CFO’s on strengthening and growing the US dollar or another currency in question cannot be neglected. If the United Kingdom, for example, ensured availability of experienced CFO’s in crucial financial matters of a company, steady growth and stability of the Sterling Pound would be evident.