5 Things To Include Your CFO On Outside Their Normal Duties

Originally posted at:

http://blog.360cloudsolutions.com/5-things-to-include-your-cfo-on-outside-their-normal-duties

 

When you are the CEO part of the job is regulating duties and keeping people in the know about things they should be informed of. Keeping management up to date on industry news and events is key to continued business innovations and success. Often this involves bringing management and officers up to date on events and tasks that may not necessarily fit their normal day-to-day duties. While the role of the CFO on paper, is the person most concerned with business finances, there are other business happenings that they should be made aware of and allowed input on. This not only makes their job easier but also allows for more visibility. This can include things such as department turn over, hiring practices, supply chains, and business management software.

The following list includes five areas you should most always include the CFO.

  • Plans For Future Growth: First and for foremost many CFOs are becoming more involved in overall planning for future business expansion. Involvement in this area includes many different roles not just the CEO. Future growth includes where to open new offices, international expansion, product branding, and the launch of new product lines. By involving your CFO you assure these plans are financially sound and achievable without presenting a greater overall risk to the company.
  • Talent Recruitment/Hiring: Part of planning for the future is hiring skilled employees. Involve your CFO in the hiring process. You cannot expect your CFO to provide precise financial predictions and overall review if they are unfamiliar with the existing and future workforce. Allow them to have input on future advancement plans and inter-company growth for employees. They offer great knowledge in the area of reviewing compensation plans but also ensuring they are saving the company money by reducing turnover.
  • Sustainability/Corporate Responsibility: Many CFOs report an increase in their duties as corporate stewards. Part of the modern business environment is reducing waste and promoting a positive relationship with local communities, workers, and the environment. The CFO can help shape such policy and guide it in such a way that it is not only financially feasible but also beneficial as well. CFOs should aid in driving business integrity to help build a positive brand and rapport.
  • Supply Chain Partnerships: One key area where companies lose money is in the supply chain. Involve your CFO in supply chain optimization and asserting supply chain partnerships are functioning properly. This means a greater sharing of information and two-way communication with the CFO. One area where businesses lack is sharing current information with the CFO; this is the root cause of several issues. Often times the CFO uses a type of accounting software for managing the business’s financials, they are usually aware of software to standpoint. Sometimes the accounting software they are using can integrate with supply chain software so that information never leaves the software suite.
  • Business Management Software: Last, but certainly not least, is use of business management software. Many businesses are either using outdated, on-premise management software or their IT team has “integrated” all of the various software pieces. This leaves the CFO in a tough position because they are responsible for signing off on the software but then they never see it again and it is hard for them to see the solutions’ ROI. This is why the CFO should always be invited to give their feedback on what they think of the current software setup. For example, if the CFO can’t see what the pipeline looks like or how much marketing is spending in comparison to sales, they  have a problem. The CFO should have the opportunity to recommend more modern or integrated business management software and have the opportunity to complain about any lack of visibility they are experiencing.

Conclusion

It seems to be apparent there are more elements to being a CFO than just the bottom line. By keeping your CFO updated and allowing their input on tasks such as company expansion, employee growth, and business software not only makes their position easier and more visible but also assures more precise management of company resources.

Leave a Reply