In today’s world, all corporations, as well as a significant proportion of small and medium-sized companies, have a CFO. He is responsible for the financial and accounting activities and reporting of the company on a daily basis, as well as for the overall strategic direction of its development. Moreover, he is the right hand of the executive director / manager and the board of a company. Actively participates in determining the long-term strategy, in the assessment of various risks and business scenarios, as well as in making important decisions.
The choice of CFO services in India has a direct impact on the company’s reputation, so hiring the right person definitely brings immediate benefits (or harms) to the business. But what are the most important criteria when choosing a specialist for such a responsible position?
The profile of the ideal candidate cannot be overly generalized, as it is usually set according to the development phase of the specific company, sector, corporate structure and culture, as well as the status of the managed financial and accounting team. CFO is a strategist whose main task is to increase the company’s value, increase its profit and investment attractiveness.
- organization of management and financial accounting processes
- Analysis of financial and economic activities
- Maintaining and controlling budgeting processes
- Income and expense budgeting and cash flow budgeting
- Investment control
- Development of analytical and statistical forms
- Organization of the system of internal financial and economic control of the company;
- Preparation of management reports (presentations)
- Treasury management
- Cash management, attraction of external financing
- Active work with external auditors, bank auditors, appraisal organizations and banking structures
- Operational management of accounting, accounting
- Tax planning, analysis and optimization of taxation
- Transfer pricing
- Development of measures to ensure the financial stability of the company, analysis and assessment of the company’s financial risks
- Foreign Economic Activity, Foreign Exchange Control
- Preparation and submission of reports on CFCs, organization of preparation and audit of reports on foreign companies
- Automation of individual blocks and tasks with an IT service for management accounting
- Organization of procurement and warehouse management processes
- Search and implementation of sources of optimization of production costs
- Calculation and control of the cost of manufactured products, pricing
- Determination of marginality
- Break-even point analysis
- Development and analysis (control) of investment project budgets
- Development of internal standards and criteria for assessing target and key indicators of the company
It is extremely important for the CFO to go beyond the formal financial-accounting and auditing framework of his function and to go into details in the business model of the employer. Companies are increasingly looking for professionals with an entrepreneurial spirit and thinking, even the courage to change the status quo and make changes. Today, the CFO is more of a business partner who is active and willing to understand what drives the company, where it makes a profit and what are the variables of the business. For example, if a company manufactures who apply for an employer identification number complex industrial products, the CFO must be aware of who the suppliers are and how they can be optimized to better manage cash flows. Also importance and the CFO to understand the typology of customers, for example whether there is a concentration on a customer and what are the risks, as this also directly affects working capital.