A CFO often enters a business at short notice. The reasons can be many, but for a company with financial challenges, a CFO can become a “lifeguard” – a person who can take the pulse of the business, map the real situation with “new eyes” and change course in time.
Responsibilities and tasks are key words for someone who is to lead the development of a company’s financial health. A virtual CFO India must ensure that the organization has a sound economy and a good basis for investment and growth. In a world where the pace of change is increasing and new technology both threatens business models and creates opportunities, the finance manager has one of the most central roles. Here are four skills we believe a virtual CFO India should have in order to succeed.
Good liquidity management provides greater freedom of action, which can provide increased competitiveness in the market. Therefore, this is not just about the company having to be able to service its costs, but also to be able to seize opportunities and realize plans.
New eyes on the business
Most CFO managers have extensive experience from various companies. Some also from different industries. The CFOs therefore have considerable experience and competence. A CFO assignment thus also gives the board or senior manager a unique opportunity to have the company or department assessed with completely new eyes.
Most companies – regardless of finances and internal culture- will normally benefit from an “outsider” occasionally – after working for or in the company – giving his reflections on operational arrangements, organization, etc.
In this way, a proactive virtual CFO can give the client a significant added value beyond the actual execution of the assignment he or she has been hired to perform.
In my many years as a business lawyer, and as a partner and chairman of various companies, I have repeatedly witnessed how important it is that today’s boardroom and management take into account unforeseen and significant events (so-called “Game Changers”), and that one shows willingness to change and takes risks. Good finances are of course essential for a company’s opportunities to be able to survive in the future as well. But my experience is that a strong internal culture is also very important, as this can help to push boundaries and reach unimaginable goals.
We will not get away with this. Cash flow or cash flow is payments and withdrawals in a business over a period of time. It is elementary for a CFO to have a very good understanding of how these are connected and affect the operation of the companies in both the short and long term.
Today, there are many technological tools that can help a CFO and a finance department work more efficiently and structured. As a finance manager, you should have an overview of what relevant tools are available and not least understand how they can be used to create value for the company.