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The chief financial officer (CFO) is no longer simply “good with numbers”. Their role has become a multifaceted one, demanding strategic leadership, technological expertise, and a commitment to ethical and sustainable practices.
More and more, CFOs have become a strategic partner to the CEO and other executives, while also being fundamental to managing risk in a company. They must also be in tune with their teams, and care deeply about ESG.
Strategic partners
CFOs actively contribute to formulating and executing organisational strategies, which requires a deep understanding of the business landscape, industry trends, and translating financial insights into actionable growth strategies. This demands a specialised toolkit, encompassing tech-savvy and data-driven decision-making.
As a leading provider of cloud-based business management solutions, Sage offers CFOs a comprehensive suite of tools designed to streamline their role and enhance their ability to make informed, data-driven decisions.
Sage software solutions offer data dashboards built by the users where they are able to share insights and data points to the relevant stakeholders, helping them anticipate future trends and make proactive decisions. By providing real-time insights into financial performance across multiple locations and entities, CFOs can generate accurate and timely financial reports, supporting decision-making and regulatory compliance.
Risk management
Through advanced analytics and artificial intelligence, CFOs gain a real-time view of their company’s performance, market trends, and operational efficiency, facilitating informed decision-making.
Increasingly, CFOs are also required to collaborate with security heads to develop robust cyber security strategies and manage broader business risks, including supply chain disruptions, geopolitical uncertainties, and climate-related threats.
Sage’s solutions also help identify and flag potential risks, such as fraud, allowing for a proactive approach to any irregularities. By automating routine tasks, Sage streamlines financial processes, reducing manual errors and freeing up CFOs and their teams to focus on strategic initiatives.
Teamwork
CFOs must work well with other divisions and within their own department. To build a dynamic finance team, this means hiring diverse talent, investing in continuous learning, encouraging collaboration, and recognising and rewarding performance. It is important for CFOs to develop a culture of experimentation, allowing finance leaders to use technology to improve what they do on a day to day basis including their processes.
Good for people and planet
ESG (Environmental, social, and governance) factors have become crucial for financial decision-making because they have become expected. They also mitigate risks, are important to socially conscious investors, and enhance long-term value.
CFOs play a key role in creating and implementing sustainable finance strategies that align financial goals with ESG objectives. They will also prioritise transparent reporting on sustainability initiatives to meet the growing demands of investors, regulators, and stakeholders.
Principled leadership
The CFO plays a crucial role in ethical leadership by ensuring financial transparency, upholding regulatory compliance, promoting fair business practices, and fostering a culture of integrity within the organisation. This involves setting a strong ethical example, communicating ethical expectations, and holding employees accountable for their actions.
By taking on these expanded responsibilities, CFOs can position themselves as indispensable leaders of the future, shaping their companies’ success through financial resilience, innovation, and long-term value creation. DM