Chief financial officers need to get decisions right for their organisations to provide business confidence in investing in growth.
This is what Elif Kuralay, Retail & CP Industry Advisor at SAP, points out, saying that the right decision-making from CFOs paves way for continuous investments in growth platforms such as new sales channels, new business models, store modernisation, marketing and developing people.
Meanwhile, Blair Robinson, Partner, Business Consulting at Ernst & Young cites The 2023 EY DNA of the CFO Report, wherein 76% of finance leader respondents believe the current market environment, comprised of three main areas—Money, Energy and Supply—are increasing pressure on finance professionals to drive cost efficiencies and hit short-term earnings targets.
Because of this, 90% of finance leaders surveyed look into reducing or pausing spending across areas ranging from marketing to people development, despite some of these areas being long-term priorities.
Considering all these, Kuralay and Robinson give tips to ensure that CFOs are future-ready for the business.
Reimagine Finance Operations
The CFO has the opportunity to leverage technology, data, and insights to model future business options and to critically analyse prior decisions.
CFOs see the need to modernise finance operations to reduce manual effort and enable employees to focus on more value-added activities.
Optimise Cash Management
Poor understanding of cash flow is a primary reason why many businesses fail.
The CFO and the finance team need to have great visibility, effective control and collaborative execution for that finite and most valuable business resource: cash.
Businesses need integrated, intuitive tools that give them instant insights on the complete value chain, including receivables, payables, and associated supply chains.
Manage Profitability
Finance teams need to be active participants in managing profitability for the business, they may not be responsible solely, but they can best support the business by providing finance data and models in a timely, reliable and enabling fashion.
The CFO can play an even bigger part in the future success of the business. Not only are the finance team the keepers for financial data, but they also have the opportunity to proactively consult with the business teams; partnering in agile decision-making, providing business insights, actively supporting investment choices, helping identify success or failure in a rapid manner.
Transforming the finance function provides the opportunity for businesses to escape the business trap of higher prices or lower margins, it can help you to pivot to increased competitiveness, revenue growth and success with customers, these are definitely the numbers worth pursuing.
