How has the CFO role evolved today?

As the guarantor of a company’s financial equilibrium and economic sustainability, the CFO (or Chief Financial Officer) takes on a variety of missions and fulfills several crucial roles.

Yet, in a changing economic and fiscal landscape, and with the emergence of new environmental and technological challenges, this already complex position is evolving.

In this article, we present the missions of today’s CFO and the new challenges they face.

The Role & Duties of a CFO

The Chief Financial Officer ensures the financial equilibrium of his or her company, not only by overseeing cash management but also by determining the best strategy to guarantee its economic health and profitability.

This CFO’s responsibilities involve a wide range of tasks, including :

• Establishment and responsibility of financial strategy;
• Presentation of financial strategy and reports;
• Budget preparation;
• Accounting control;
• Management of relationships with banks, suppliers, shareholders, investors and customers;
• Identification of financing sources;
• Tax compliance;
• Participation in negotiations and strategic decision-making.

In addition to these standard tasks, nowadays, a CFO’s strategy must take into account new economic, environmental, and technological challenges to make the best possible contribution to his or her company.

What Are the CFO’s Top Priorities?

Optimal Cash Management

In recent years, and particularly since 2023, unstable geopolitical relations and inflation have contributed to an extremely changeable economic landscape, and a sharp rise in interest rates.

Against this shaky backdrop, companies and their finance departments need to become more flexible and agile, both in their processes and in their forecasts.

With this in mind, and as PwC’s annual study has highlighted, the CFO’s top priority in 2024 is optimal liquidity management. The latter is crucial to guaranteeing the financial stability of the structure in the face of a still uncertain economic future.

Growing Your Business With New Technologies

The emergence of new technologies such as artificial intelligence and blockchains, and the increase in digitization, are leading to an upheaval in practices.

Now, to optimize their company’s performance and spot opportunities for growth, CFOs must integrate these new technological tools into their practices.

In particular, their use enables them to better analyze financial data, and thus make smarter decisions. These new tools also enable CFOs to save time by automating tasks.

Thanks to their expertise in new technologies, CFOs are also able to protect their organization against new risks, such as cyber-attacks.

Ensuring the Integration of CSR and New Sustainability Issues

CSR (Corporate Social Responsibility), established within the framework of the Corporate Sustainability Reporting Directive (CSRD), is also one of the CFO’s new priorities. CSR defines corporate responsibility in terms of sustainable development, according to various social and environmental criteria.

In order to guarantee a sustainable approach and ensure the positive impact of its structure on the social and environmental spheres, the CFO of 2024 must ensure that these new criteria are taken into account in financial decisions.

The CEO/CFO Relationship

A successful CFO today requires more than technical expertise; it demands a strong partnership with the CEO to align financial goals with the company’s broader vision. By providing transparent, straightforward analyses, the CFO supports the CEO in his strategic decisions.

The CFO also plays a pivotal role in translating the CEO’s vision into financial realities, ensuring strategic alignment that maximizes resources and fosters growth. With complementary skill sets, the CEO and CFO create a balanced leadership dynamic, where the CFO’s analytical rigor supports the CEO’s strategic foresight.

This enables the organization to meet many complex challenges!

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We hope this article on the CFO’s role and functions has enlightened you. In the meantime, leave the search for the best CFO to the experts. With its dedicated talent sourcing service, radar helps you find the best people and talent for your company.