The New CFO Mandate

The New CFO Mandate: Reshaping a new finance function for the post-pandemic new

The pandemic-driven upheavals have caused several broader disruptions in the business world with human-stress and economic-turmoil having the largest impact on the CFO fraternity. In the fall-out, CFO have lost jobs, taken early retirement or started looking for alternate opportunities.

The business world is now evolving a new mandate for CFO with the background of persistent worries about the pandemic, economic recovery & anxiety about the durability of the economic boom, new normal and need to manage the transition to a world reshaped by trends like hybrid work and digital transformation. According to the latest McKinsey Global Survey on the role of the CFO,1 finance leaders are deeply involved in determining how businesses adapt to these trends — particularly in those places where digital and finance intersect.

The new mandate will include the following main thrust which a CFO/ Virtual CFO may have to address to help the business grow: 

The core tasks of CFOs/ Virtual CFOs:

Overseeing organizational finances, optimizing risk management, and managing regulatory compliance shall continue to play its role.

If you are a Small Business, choosing virtual CFO services can be advantageous as they are less expensive than the hiring of an in-house CFO. And most importantly, a virtual cfo is qualitatively better at their job than your average in-house cfo.



Strategic Collaborator:

During the height of the pandemic, CFOs became more visible and now own a proactive role in building team confidence through transparency and open information sharing. These traits enhance employee loyalty and understanding of the business, ultimately supporting company performance through lower turnover rates, greater levels of engagement and higher customer satisfaction.


Financial Accounting & Planning:

As markets are unpredictable, the CFO team should dwell more into the financial Accounting planning and analysis and build resilience by closely monitoring events and drawing up risk management models, bolstering liquidity of funds while also setting aside reserves if possible, diversifying assets to minimize risk, and taking advantage of government support programs where applicable.

Paperless Accounting:

The advent of technology has revolutionized businesses and has done away with paperwork in offices. A lot of space has been saved as files are now stored in electronic gadgets and virtual storage. Paperless accounting involves transaction processing that is entirely electronic, with almost no paper involved in any business process. The intent is to streamline processes, reduce transaction error rates, and eliminate document storage.


About SBS

SBS Global is an ISO 9001:2015 & ISO 27001:2013 certified company serving since 2007. SBS Global offers a comprehensive range of Accounting, Virtual CFO Services, Compliance Services (i.e., Company Secretary services) & HR Services catering to the needs of Small & Medium Organizations across industry sectors to meet their changing needs & expectations. Our team includes employees having industry & domain expertise who have insights drawn from years of professional experience.

You can reach us via email enquiry@sbs-global.com or via call us @ +91 8884733955 / +91 8040301700.

For more information visit: www.sbs-global.com

Location: India

Comments

Post a Comment

Popular posts from this blog

How to Implement Accounting Dashboard?

An Accounting Dashboard (AD) is a powerful digital tool for business intelligence on accounting data. The best Accounting Dashboards let accounting and finance professionals save time by tracking key KPIs, reducing massive, real-time data down to vital insights at a glance, and customizing reports for an instant, robust financial understanding. With the right Accounting Dashboards in place, the Finance Manager can see revenue, costs, profit, loss, and many other guiding stars laid out at the fingertips that will help to make accurate decisions for times ahead as well as to change course promptly, if need be. The right dashboards will give the team the power to spot trends, opportunities, and growing problems and effortlessly visualize large datasets. With easy-to-parse graphical representations, the team can deliver crisp, concise C-suite presentations, and quickly analyze business performance, operational statistics, and key metrics with minimal effort. These 5 steps must be followed
Read more

SOP- FINANCIAL ACCOUNTING

Image
Business organizations today are very vast and complex. If keeping track of their daily activities itself is a challenge, managing their daily activities is an even greater challenge. Numerous transactions happen, new clients are acquired, additional engagements with existing clients are commenced, contracts are renewed/terminated as well as payments are received and made, on a daily basis. A large number of employees – having diverse character, age experience, etc.- join; employees leave, take casual leaves and change roles every day. A reputed company cannot afford disruptions in its service or deterioration of its reputation because of the daily changes that take place within the organization. That is where Standard Operating Procedures (SOPs) come into play. SOPs are a set of procedures, relevant to an organization’s domain and composed by the organization itself. They guide the organization on how to carry out its complicated day-to-day activities and what to do in case of an emer
Read more

Chief Financial Officer Top Roles and Responsibilities

Image
  As the roles and Responsibilities of most other corporate positions have changed and evolved with the passage of time and the changing business environment, the role and responsibilities of the Chief Financial Officer have changed and evolved as well. Traditionally, the CFO was considered the ‘head bookkeeper’ of the organization, responsible for collating data, preparing reports, and submitting them to the CEO. However, that is no longer the case. The Chief Financial Officer is now valued almost as much as the Chief Executive Officer of a company. The Chief Financial Officer does a lot for the welfare of the company and plays a vital role in the value creation process of the company. Let us understand the emerging role of a CFO in the current environment and its contribution to the business. read more The Emerging Role of Chief Financial Officer Due to operational difficulties and equitable distribution of workload, the position of CEO was further divided into CFO and COO positions.
Read more