The Evolving Roles of CFOs & How the Right Fit Can Boost Your Business

Maybe you’re looking for a chief finance officer (CFO), or you are a CFO, but you are not sure how to maximize the role’s potential. Whether your company is focused on transitioning team leadership, completing major transactions or accelerating growth, a strong CFO can play a substantial role in getting the job done. The truth is that the “potential” and “responsibilities” of a CFO can vary considerably depending on the size of the company, industry and available resources.

The expectations of the CFO position have evolved to surpass mere economic benefit. They are expected to oversee the current health of a company’s finances as well as prepare strategically for the future, which can embody a variety of forms. Sometimes this means getting directly involved with investors to build favorable relationships or leading transformation across most parts of the business. At the end of the day, it is up to the CEO and ownership to define what is needed from a CFO.

The value generated by a CFO is what differentiates the mediocre from the excellent. So, how do you know if you are leading your company in the right direction? Let’s look at a list of the pivotal (but not exhaustive!) roles a CFO should embody.

The Roles

The compass

Perhaps the most obvious role, a CFO is responsible for “sanity-checking” the health of a company’s finances. They continuously analyze financial data to refresh business goals and ensure alignment between the company’s values, budget and priorities. A CFO must collaborate with other leadership to discern the direction of success and pave a path toward it.

The thinker

To take advantage of new opportunities, the CFO must put your company in a position to find them by making sure questions such as these are answered: “Which teams require more resources to expand opportunity? How can we outpace our competitors?” CFOs must lead discussions and facilitate decisions such as these to suss out valuable opportunities, prepare feasible strategies and seamlessly execute them.

The optimist

A strong CFO will work closely with others to provide solutions instead of just pointing out challenges or obstacles. They evaluate opportunities from different angles and explore alternative means to reach the required end. Rather than reflexively assuming an expensive idea is a bad one, they should promote the flow of fostering creative, breakthrough ideas by devising practical ways to operationalize them.

The advocate

A strong company relies on every team to make things happen, and the CFO helps make sure everyone on the team knows the clear destination and the roadmap to get there. This role requires a high level of emotional intelligence to truly understand what is unique about a company and how to advocate for its success internally and externally.

The investor

It’s no secret that CFOs are responsible for allocating resources to the most valuable growth areas. Investment in all the business units across a company is essential for a successful CFO. Cohesion across all departments can drive both direct and indirect business growth, and the CFO has an obligation to ensure that teams have the resources they need to excel.

In practice

Having the skills and intuition to form solid business decisions based on the forecasted benefits and risks of opportunities is a complex but requisite element to success for CFOs. These evolving roles have enabled CFOs to contribute to business strategy and growth in new and meaningful ways. However, these skills must often be learned over time and through experience. As with any executive position, CFOs must be willing to continuously learn to keep up with market trends, foster transparent relationships, and drive strategy and accountability in their company.

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If you’re a CFO seeking guidance or looking to expand your perspective, consult with Aprio’s CFO advisors today. With strategic planning and operational guidance, we can develop and provide CFO solutions for your company’s unique needs and path. Let us help you maximize business outcomes and navigate any inflection point, whether advancing through high growth, capital raises, M&A transactions, or selling. Schedule a consultation today and achieve what’s next at Aprio.com.

Aprio is the brand name under which Aprio, LLP, and Aprio Advisory Group, LLC, deliver professional services. Since 1952, clients throughout the U.S. and across more than 50 countries have trusted Aprio for guidance on how to achieve what’s next. As a premier business advisory and accounting firm, Aprio Advisory Group, LLC, delivers advisory, tax, managed and private client services to build value, drive growth, manage risk and protect wealth, and Aprio, LLP, provides audit and attest services. With proven experience and genuine care, Aprio serves individuals, entrepreneurs, and businesses, from promising startups to market leaders alike. Aprio has grown to 2,000+ team members providing solutions to clients in industries including manufacturing and distribution, non-profit and education, professional services, real estate, construction, restaurant, franchise and hospitality, government contracting and technology and blockchain.

Eric Krucke has over 25 years of hands-on financial leadership experience enabling growth and navigating acquisitions for founders and family-owned businesses.