The Potential Power of a CFO

CFOs have the potential to be a strategic advantage for companies, but many businesses neglect to invest in the proper resources that could help CFOs thrive. Even when steps are taken to achieve this, they are very often unsuccessful.

One of the problems faced by CFOs is that the data needed to organise funds more appropriately is not formatted correctly. Access to information also allows CFOs to give useful and accurate advice on how a company should be spending and investing, information that can be essential to growth. By using software that categorises and files information more manageably, CFOs could make better sense of the information necessary to make vital financial decisions.

A CFO’s job is made more useful by reducing their need to organise and compile data. If the data can be organised for them, they are able to spend more time using this information to recognise the problems faced and effect the change needed. Having easier access to information allows for more informed decisions and strategic moves based on finance data. New software allows for CFOs to receive data from various sources that allows them to make more accurate predictions of trends. When there is reliance on a team to provide this information, there is the chance that the team will misjudge the information or not consider factors that a more experienced CFO would. When it comes to the sensitive and essential issue of income and growth, a company relies on the expertise a CFO provides. Making their job easier can only improve the performance of a company.  By not relying on others for information, CFOs are also able to make better predictions. New software can indicate trends that a human might not have noticed, trends that could lead to investing with higher returns.

CFOs rely on their teams to provide the data mentioned above. Overseeing teams not only takes time but also allows human error to be made. By automating this process, few to no errors would be made and less time would be spent waiting on people to provide the necessary information. Computer systems would hasten the step between data capturing and data deliverance. Computers also organise information in a way that is more useful to a CFO. It allows the CFO to look at information in various categories and weigh the options with more insight. An abundance of information is only made useful if it is easy to understand and access.

It is believed that a combination of the two approaches above will result in a more efficient role as CFO, and that one without the other will compromise effectiveness. It is clear that technology can revolutionise a job that has the potential to improve a company’s income greatly. Technology removes the possibility of missing out on information due to oversight. Taking the time to implement more advanced and useful software seems to be the key to increasing a CFO’s success, something more companies should be doing.

 

About Prof Janek Ratnatunga 1129 Articles
Professor Janek Ratnatunga is CEO of the Institute of Certified Management Accountants. He has held appointments at the University of Melbourne, Monash University and the Australian National University in Australia; and the Universities of Washington, Richmond and Rhode Island in the USA. Prior to his academic career he worked with KPMG.