What Makes a Good CFO?

The outdated stereotype of a Chief Financial Officer (CFO) is someone who focuses solely on finance and accounting functions – their world is just about the numbers. However, in 2022 a CFO is tasked with a wide variety of responsibilities, and not all of them involve the books. This can make finding the right fit for your company tricky, so keep reading to find out what makes a good CFO in 2022.

 

Primary CFO Functions

The most important CFO function is being the Guarantor of Financial Integrity. In other words, the CFO implements best practices based on knowledge, experience, and the best interests of the company. The CFO needs to be knowledgeable in all fields of finance, accounting, and regulatory law to be able to achieve this. The CFO also takes control of all internal and external communication concerning the company’s finances. They will be the ones talking to managers, employees, other executives, board members, investors, bankers, and audit firms about the current and future outlook of the company’s financials. 

 

Outside of the nitty-gritty financials, the CFO has to be the first mate to the CEO’s captain duties. The CFO is an extension of the CEO and therefore needs to possess excellent leadership skills. They not only have to be able to work together and communicate well with the CEO, but they also have to be able to lead the managers of the company. This is because other than the CEO, the CFO has the broadest view of the organization. Similarly, the CFO is often expected to lead the company in terms of technology transformation. This could involve moving to cloud-based web architecture, implementing data analytics, or artificial intelligence. A good CFO will have experience with technology that allows them to choose the best route to take the company in terms of new tech.

 

Qualities to Look For

Finding the right CFO can be very difficult, so here are a few things you definitely need to see in any prospective CFO. A good CFO is analytical and strategic. They will be able to look at numbers and spreadsheets and be able to identify problems and opportunities, as well as be able to determine how to quickly fix the problem or exploit the opportunity. A good CFO is operationally savvy. They should know the ins and outs of how the company provides value to customers and clients. This allows them to create a strategy that will maximize profits for the company.

 

A good CFO is emotionally intelligent, so they understand how to ‘read the room’. They know how to engage and effectively communicate with employees and shareholders at all levels. A good CFO is  technologically fluent. As discussed previously, the CFO is going to decide where the company is going with new tech, so they need to know what will be productive while also being cost effective. Finally, a good CFO is an effective communicator. Whether it’s the CEO or a regular employee, the CFO should be able to explain economic, financial, and technological topics with ease and grace. 

 

As you can see, the CFO position covers an array of duties and not every accountant is ready to fill the role. The task of finding a CFO is daunting and will take time, but Taurus CPA Solutions are here to help!

 

Our Experienced Advisors

At Taurus CPAs, our mission has remained consistent since our founding – to be exceptional service providers and trusted advisors who integrate strategic advice and innovative solutions with integrity, quality, and reliability.