The financial management is the part of the company that is responsible for planning, executing and analyzing finances, that is, the exchange of capital. The objective of this department is to analyze the situation of the company to help both the management and the other areas to make decisions.
With this analysis, value is generated in the company, which is why all large companies have a department dedicated to finance, usually led by the CFO, for its acronym of Chief Financial Officer. The CFO is responsible for financial and investment analysis and cost analysis in making decisions to manage the financial health of the company.
The CFO is (yes, what you imagine) one of the most relevant figures in the management of the company. Globalization and the new business models that have emerged with the digital transformation have given the position a profile beyond the traditional one, that of numbers, to involve it with the global management of the organization.
CFO: Chief Financial Officer – is that of a professional with a transversal perspective of all areas of the company, a fundamental vision for decision-making that affect the entire organization. Leadership, negotiation, communication, international vision, among other skills and competencies, are necessary to take charge of finance in companies with a global vocation.
Implementation of a cost control system
Controlling with precision, efficiency and responsibility in what the company’s resources are being invested and the weight that the different decisions that are made have for it, is one of the main functions of this profile.
The person in charge of the finances of the company must manage liquidity in such a way that the organization is able to face the most urgent needs, as well as adequately foresee everything that concerns the treasury. It is essential that you know in depth the market, its forecasts and customers, so that you can always have the necessary liquid for operations.
Achieve bank financing
At this point the CFO has a dual role. On the one hand, he is the figure at the forefront of communication with banks, so he must have good negotiating skills. In addition, they will be responsible for arguing and justifying the company’s ability to meet the obligations derived from financing, a resource that may depend on whether the company’s needs are covered in the short or medium term.
Determine the possibilities of internationalization
The CFO’s peripheral vision needs to encompass other alternative markets so that he can recognize an opportunity to capitalize on in environments that are not typical of the organization. This quality is one of the most relevant to determine the viability of an internationalization project.
Control investment realistically
Risks, profitability, possibilities… the virtual CFO services in India have to thoroughly analyze the environment of each investment. Every project must have a specific action and contingency plan.
Effectively lead your team
As head of the department and of a team that faces complex and demanding scenarios on which the operation of the business depends, the finance director must be a leader, capable of generating motivation, commitment to goals and a sense of responsibility.