We all know how important it is to have a good CFO in a company and how this is vital to the success of any organization.
The CFO is responsible for managing the financial operations and strategies of the company, including financial planning, budgeting, forecasting, reporting, and consistent innovations. A good CFO will have strong financial acumen, be able to think strategically, and have excellent analytical and decision-making skills.
Fitting a CFO into your team requires careful consideration and planning. So, here are a few steps you can take to ensure a smooth integration:
- Define the role of the CFO.
- Communicate with your team about the addition of the CFO.
- Assign a mentor to the CFO.
- Give the new CFO time to learn the financial processes and systems of the company.
- Encourage collaboration between the CFO and other members of the team.
- Set clear metrics and goals for the CFO and the team.
- Schedule regular performance reviews to discuss feedback and progress.
Related: C-Level Executives, How It Can Help You Grow Your Business
How is the modern CFO?
The role of the CFO is no longer the same as it was years ago, nowadays, technology plays a crucial part in the skills needed for the position, and to this, we can add two crucial things: adaptability to change and proactivity in business strategies, the CFO must be a quick and creative thinker.
What we all have always known is that the core responsibility of a CFO is to the finances of the companies, to manage the financial statements, give the financial statements and ensure compliance with laws. But as the world has evolved, so have the expectations over this role.
Over the last decade, startups have changed the business landscape, and when a CFO joins such a company, he immediately sees his role start to change and how his responsibilities increase. The modern CFO has become a collaborator and manager of the business, the right hand of the CEO, and above all, an essential piece of the team’s performance.
So, modern times require extra effort from the CFO, which goes beyond addressing the market demands and managing teams and collaborators, but also deploying the company’s strategic plans with creativity and confidence.
Related: 5 podcast you should listen if you are thinking about entrepreneurship
Key Skills for the New CFO
The CFO is an important figure in any organization, and just like the CEO, a CFO must have specific skills to carry out this job smoothly.
- Strong financial and accounting knowledge: To make informed decisions, the CFO should have a deep understanding of finance and accounting.
- Technical skills: The CFO should be well-versed in enterprise software, data analytics, and modeling, as well as digital technologies.
- Must be technical: This professional needs to be an expert and know how to monitor financial indicators closely and regularly, they must also have a good knowledge of internal finance systems tools.
- Be a strategist: a quick thinker and long-term planner. One of the objectives of the CFO is to take part in strategic decisions to drive the overall growth of the business.
- They should be innovative: curious, agile, and constantly looking for new ideas and technologies to challenge internal ways of working and thus improve the efficiency of both teams and the company. Therefore, the modern CFO is always aware that technology will radically change their role in the future.
- Be a team player and a collaborator: They are always ready to help and clear that, to facilitate business decisions, must give a clear picture of the company’s financial situation. Along with the CEO, the CFO encourages teamwork, collaboration, and discussions to improve the organization.
- Continuous learning: The CFO must be open to learning and constantly developing new skills to adapt to the ever-changing business environment.
- Negotiation and investor relations skills: a good CFO should be able to negotiate with investors and other stakeholders in the company and maintain good relationships with them.
Related: Qualities of the best CEOs
Startup CFO role and responsibilities
The role and responsibilities of a CFO in startup companies may vary depending on the stage of the company and the specific needs of the organization. However, some common responsibilities include:
- Financial planning and analysis.
- Fundraising.
- Accounting and financial reporting.
- Risk management.
- Treasury management.
- Support innovation.
- Legal and compliance.
- Providing decision-making support.
- Building and managing a finance team.
- Supporting the company’s scaling.
- Building relationships with stakeholders.
The CFOs role in innovation
As Juan Jiménez, CFO of Mahou-San Miguel, explains, the new role of the CFO must be focused on the business because knowing the company well allows them to contribute much more to it, while always innovating and thinking about the future. “We must be advisors to the business, we are drivers of corporate projects with increasingly greater tailoring in the company’s strategy. That is where we have to leverage in the future,” he says.