The role of the CFO has faced a slow evolution over the past two decades, transitioning from a focus on financial reports and metrics to the overall efficiency and optimization of a business. Leading CFOs have taken a driving role in digital transformation, cultivating company cultures that embrace innovation and empowering new generations of their employees.
What are the greatest challenges and opportunities for a modern CFO? This blog will explore the new objectives and priorities for modern CFOs, along with the skill sets needed to create organizational change.
What makes a modern CFO?
The main differentiator between a modern CFO and how the role was traditionally defined is the focus on technology and automation. Digital transformation can spark substantial change throughout an organization, helping CFOs to build a lasting legacy.
But how can CFOs inspire digital transformation? They can start by leading by example, showcasing curiosity and open mindedness for new technologies or opportunities. The modern CFO should continually ask if they are using the best procedures and processes for their unique business needs.
CFOs can easily set the tone by transforming your finance function first, inspiring other departments to look for improvements themselves. Your success and learnings will set the stage for broader changes, making you the true driver of an evolving organization.
Modern CFO roles and responsibilities
The role of a modern CFO is much more involved than in previous decades, owing largely to technological improvements and increased inter-departmental cooperation.
Key skills for the modern CFO
Now that the expectations for modern CFOs have been defined, let’s explore the skill sets that help make these achievements possible. By building and practicing each of these skills, CFOs will be able to create a lasting legacy at each organization that they lead.
- Curiosity: CFOs need to be willing to explore new processes and technologies that can create efficiencies within their organization.
- Collaboration: Better financial processes improve cross-departmental communication, collaboration, and decision-making.
- Data analytics: Modern CFOs must empower strategic planning and performance tracking across all departments, then use those learnings to prepare for growth.
- Security and compliance: The CFO must strengthen risk management as a means to securing organizational stability and growth.
- Vision: CFOs must have a vision of where the company will be in 5 and 10 years, inspiring innovation and flexibility throughout the company culture.
- Empathy: An inspiring CFO works with his finance team to identify their goals and aspirations, then works with them to upskill and secure additional training.
Key focus areas for the CFO of the future
Though the role of the CFO is continually evolving, the technological advancements of recent years have driven home the importance of AI and automation. The biggest focus areas for CFOs looking to take their organizations to the next level will be to leverage technology for increased efficiency. Here are some tips to make the most of the recent gains in technology:
Be proactively tech-savvy
Sign up for fintech newsletters, blogs, and LinkedIn groups to stay informed about the latest on technological trends. The modern CFO should have a pulse on emerging technologies and frequently suggest new strategies for his C-suite to review and approve.
Foster collaboration with IT
Proactively establish communication with your IT department to understand their needs and prepare for future tech integrations. Understand your infrastructure, what is automated, and what processes need to be improved to reduce manual tasks. This helps you find easy wins when it becomes time for digital transformation!
Promote experimentation
Give your team budget and bandwidth to explore and test new tools and methods in a risk-managed environment. Be extremely clear that this budget is for experimentation with no punishment for failure, as this will empower your finance team and allow them to make bigger swings.
Invest in training programs
Enable your team to attend courses and workshops on the latest financial software and analytics tools. The time invested in these training can pay huge dividends if your employees find time-saving opportunities and eliminate inefficiencies.
Recruit for adaptability
Think outside of the box when it comes to finance team hires, looking for the ability to change as well as technical proficiency. Having a team that is open to change and iteration is key to driving digital transformation within your business, and it helps you to make the most of emerging technologies.
“We're a technology company, and having the right accounting tech stack is important to us. Having BILL—which lets our people work from literally all over the world, accessing the platform anywhere, from phones and other devices—is fabulous.” – Randi Letendre, CFO of BetterRX.
How to make an impact as a modern CFO
Here are five easy steps to start making an impact today!
1. Explore automation
One of the easiest wins for CFOs is the ability to streamline and automate their financial operations. Look at your current processes and understand where most of the time is wasted. Is your company still writing paper checks? Do you have to chase down receipts for employee expenses? Eliminating these steps can help make an immediate impact.
When CFO Christopher Hopeck first joined Millennium Physicians, he quickly saw the opportunity to save a lot of time by switching to more efficient financial systems and processes. After implementing Sage Intacct, Millennium Physicians needed to take the next step to streamline their financial systems. Enter BILL: AP automation that synced with Sage Intacct to save time, increase efficiency, and provide more control and visibility over financials.
2. Look for opportunities for integration
Another huge inefficiency is using multiple tools for all of your different processes. This can compound into hours of wasted time as teams have to repeatedly log in and out of different portals and carry over financial information. Integrating your accounting software or ERP with financial automation platforms like BILL will save your team a ton of time in the future.
“BILL and QuickBooks speak to each other and reconcile everything. The visibility has been a huge improvement.” – Colin King, CFO of Vermont Flannel
3. Listen to your fellow CFOs
Take a moment to listen to the latest insights from your fellow CFOs. BILL’s “CFO of the Future” event featured hour-long webinar sessions with industry experts on the biggest topics impacting finance today. Watch these insights here and gain tips to drive digital transformation within your organization.
4. Automate your AP, AR, and expenses
Accounts Payable, accounts Receivable, and expense management can cause a ton of manual work for your finance teams. Automating all three processes with one solution can provide an instant boost to your department and reduce wasted time. Schedule a demo with BILL to increase control and visibility across your business spending!
“If we had kept running our finances the way we were before, there's no way we would've been able to grow. I think, in a lot of ways, BILL allowed us to grow at the rate that we were able to” – Victor Liu, CFO of Tower 28 Beauty
5. Look to the future
As you streamline your processes, you’ll have more time to spend on future growth and planning. Utilizing a tool like BILL Insights & Forecasting can help you use your existing financial data to run growth projections based on variables like inventory expansion, opening new locations, and hiring new salespeople. These insights help you make informed decisions and bring added value to the C-Suite team!
“BILL gives me time to focus on my CFO fiduciary duties, like balance sheets and P&L, projections and planning for the next year. Because of BILL, I have time to focus on the bigger picture work of the business.” - Armando Ramirez, Owner and CFO of Bold Property Restoration
Ready to leave your legacy?
Download our guide “The CFO’s guide to creating a legacy through financial excellence,” then schedule a demo with BILL to increase control and visibility across your business spending!