Today's CFO is no longer limited to the back office, but has become a central figure in the organization.
Gone are the days when the CFO was simply the keeper of the balance sheet. In today's environment, people are increasingly taking on multiple roles as strategic advisors, risk managers, and business innovation leaders.
But the important thing is that they are never doing things alone.
“People, processes, and tools are the three pillars of scaling a company.” jim sparksCFO Calderoshe told PYMNTS.A day in the life of a CFO” Series.
“It's free to put a process in place, but it's very important,” he added, noting that any process must be “repeatable – a wash, rinse, repeat cycle that anyone can follow.” I did. Direct communication is the food of champions. ”
One of the most important changes in the role of the CFO is their involvement in driving efficiency and championing technology. As companies undergo digital transformation, CFOs are increasingly taking the lead in ensuring technology investments align with business objectives.
“Tools have changed a lot over the last few years, and one of the big issues finance teams have to grapple with is making sure everyone is looking at the same data. “No, this might be a stupid thing to do. It's a business,” Sparks said.
And the CFO's role in evaluating and implementing new technologies, from data analytics to artificial intelligence (AI), is evidence of the CFO's pivotal position at the intersection of financial management and technological advances.
“As a finance team, we take a bottom-up approach. It's not a top-down process,” Sparks said.
The importance of financial acumen
Despite a sea of change, the CFO is tasked with steering the ship, but certain things remain constant, especially the value proposition of the role.
“The CFO, along with the rest of the executive team, needs to make sure the company is focused on the right things that deliver value to customers,” Sparks said. “The second most important thing is to strive to put the company in the best position to grow at an efficient rate and on an efficient basis, and in doing so increase shareholder value.”
This requires agility, he added, noting that “prediction accuracy remains paramount.”
Analyzing data and financial metrics can help CFOs identify new markets, potential investments, and growth paths. This strategic foresight is critical in guiding companies, especially during times of uncertainty and rapid change.
“The key thing I would recommend to other CFOs is to know what drives the value of your company,” Sparks says.
Beyond numbers, modern CFOs recognize the importance of human capital in driving an organization's success. Sparks explained that finance leaders play a critical role in fostering a culture of performance and responsibility. CFOs help motivate and lead teams across the organization by setting financial goals and aligning them with broader business objectives. Their leadership helps develop talent, foster innovation, and build a resilient workforce that can adapt to challenges.
it is move the ball downfield
As global markets become more complex and the regulatory landscape changes, the CFO's role in ensuring compliance and financial health has never been more important.
Sparks said CFOs protect a company's assets and reputation by establishing strong financial controls and governance structures, ensuring confidence among investors, regulators and the general public.
While discussing the recent data breach at Change Healthcare, Sparks emphasized the importance of data security. He noted that Calderos was not involved in the breach and emphasized the company's strict controls over data access and SOC 2 compliance.
Looking ahead, Sparks sees AI playing a role in the evolution of the CFO role, just as it has throughout the trajectory of the finance function.
“Finance departments have been dealing with artificial intelligence for some time. I don't want to say we're the tip of the spear, but tools like expense management tools in the accounting function [have long been built on AI],” he said. “In a perfect world, I don't think artificial intelligence would ever replace humans, but it could make humans more capable by unlocking insights and making predictions more accurate. Sho.”
