The reason why companies needed a CFO was that it became necessary to shift to an investor-focused financial strategy, and a new financial officer was required to take charge of the financial strategy. As a result, it is necessary to have a CFO who has the ability to grasp the corporate value of the company and raise profitability that exceeds the yield expected by investors as a business partner of the CEO, going beyond the roles of the conventional accounting manager and finance manager. It has become.
The CFO is an acronym for “Chief Financial Officer,” and is the chief financial officer who is responsible for the planning and execution of a company’s financial strategy. In the past, it was the manager of the administration, finance and accounting departments who had been doing business similar to the CFO in the internal title, but they generally aggregated the numbers, prepared the financial statements and disclosed it. Most of the incorporate company in USA uses the services of best CFO services for their business growth.
The CFO forms an organization (business management headquarters, management headquarters, corporate headquarters, etc.) and, as a business partner of the CEO, takes charge of a strategy to improve capital efficiency centering on the financial aspect. The role of the CFO is to maximize corporate value by providing management strategy planning support, financial strategy planning / execution (ROI management, investment selection criteria, dividend policy, cost of capital management, etc.), and IR + risk management.
It is necessary to have the ability to calmly judge what is best for the company without being overwhelmed by the opinions of investors seeking short-term profits. Pay attention to all the businesses and departments in the company, and collaborate with the opinions of the site. In addition, in order for a company to continuously improve its corporate value, it is important to create FCF (free cash flow), and for that purpose it is important to improve profitability. It is necessary to establish a sales strategy and pricing strategy to overcome competition with other companies, to cooperate with the site to thoroughly manage the budget, improve the profit margin, and build a mechanism to maximize the FCF.
The titles of CFOs of large companies are often directors CFO and the departments in charge are limited, but in the case of virtual CFO services for small business and venture companies, the organization and since the management department (back office) has a small staff, it is required to take charge of all departments. Venture companies are the best place to acquire accounting and management skills.
Therefore, the CFO does not work regardless of whether management or leadership is lacking. Since improving corporate value is the CFO’s main mission, rather than the accounting department chasing past accounting, the experience of raising funds, maximizing CF, and making investments using the funds will lead to future-oriented thinking and skills. The finance department that can be acquired is the best. In order to achieve the proposition of increasing corporate value, it is important to accurately grasp the current situation, but it is important to experience finance skills of CFO.