Five Skills that Can Skyrocket Your Financial Results

Today’s businesses have tremendous tools and information at their disposal to help them improve and stay competitive. However, keeping up with all of the abilities required to develop and sustain an edge is difficult.

Consider engaging professional CFO services to help you improve your financial results. CFOs can provide expertise in a range of areas. Here’s our guide to how they can help your business.

  1. Help You Take Advantage of New Technologies

The present corporate climate has accelerated digital investments. The coronavirus pandemic has played a fundamental role in this and has considerably expedited digital transformation.

Businesses benefit from higher efficiencies as they adopt emerging technologies. If you’re not on this bandwagon, you’ll quickly find it difficult to compete with the rest of the market.

What new technology could help you boost your financial performance?

Cloud Computing

Cloud Computing is right up there as something that can transform your bottom line.

Businesses that use cloud computing eliminate the need for on-site servers, and they may also save money on software licencing because they don’t have to buy numerous copies. In addition, cloud computing applications can help to protect your business against fraud and hacking.

Artificial Intelligence (AI)

When it comes to machine learning and AI, the future has arrived. AI enables organisations to save money by automating specific repetitive operations that take up a lot of time for personnel.

Data entry, scheduling, planning, and even responding to emails may all be automated with AI. Artificial intelligence can also help with data analysis and lead generation. Finally, AI frees up time for your personnel to focus on more complicated activities that require human interaction.

The Internet of Things (IoT)

Devices and items are becoming increasingly networked, from phones and cars to security systems and thermostats. According to some research, more than 64 billion IoT devices will be installed globally by 2026.

Some companies are coming up with cutting-edge methods to employ IoT technology in their day-to-day operations, such as tracking products through the supply chain, enhancing data analytics, and managing workforces.

  1. Creating and Maintaining Value

What elements combine to make up the total value of your company? One of the reasons the CFO’s position has become more complex is that the amount on the balance sheet reflects just one-fifth of the worth of your company.

Intangible assets have become increasingly important in recent years. The CFO and Finance Function Role in Value Creation, recent research, lays out a value-creation strategy that is desperately needed in the wake of the COVID-19 problem.

The IIRC defined the six forms of capital that define an organisation’s value in the contemporary era:

  • Natural capital
  • Relationship and social capital
  • Intellectual capital
  • Human resources
  • Capital that has been created artificially
  • Financial capital

CFOs used to be only responsible for their company’s financial capital, but today’s finance executives must have a broader understanding of value. A good CFO can help you to extend your company’s vision if this is something that has been lacking from your plan.

As a business owner, you may also wish to consider putting insurance like business insurance or public liability insurancein place. These offer significant protection for your business. To learn more about business insurance, click here.

 

  1. Governance based on principles

In addition to serving as a strategic partner to the CEO, the CFO must be the face of the organisation’s principles-based governance. Disciplined processes foster a culture of integrity and transparency, and strong leadership is required to foster these qualities.

Rules-based governance is not the same as principles-based governance. Rules quickly become out of date and can be exploited to benefit the interests of a strong-willed individual. Principles outlast regulations, and they’re reliable enough to serve as a compass even when the winds of change blow.

Honesty, integrity, accountability, and mutual respect are all characteristics of good company governance. The ever-changing environment in which decisions are made, and services are provided creates a web of stakeholders, each of whom has their own set of interests and influences. In such a setting, the CFO must recognise, analyse, and manage these elements, and a principles-based governance system allows for openness and transparency.

  1. Adaptive Finance and Accounting (F&A) Capability

The CFO of today must be adaptable, versatile, and proactive rather than reactive. While CFOs have always been in charge of finance and accounting (F&A), the volatility of today’s markets necessitates quick answers and adaptability.

CFOs may give up-to-the-minute information by acquiring and analysing data, allowing important decision-makers to react quickly and confidently to market fluctuations, investment opportunities, and even catastrophes.

  1. Ability to Manage Strategically

The CFO is in a unique position to bring a unified perspective to a company’s strategic goals, opportunities, risks, and business model. If your business strategy is still in the planning stages, you might wish to discuss the following points with your CFO:

  • What are the company’s ambitions and long-term objectives?
  • What services and products will the business offer?
  • Where will the business operate?
  • What strategy will you use to gain market share? How will our company set itself apart in order to achieve a competitive advantage?
  • What qualities do you require to stay competitive?
  • To succeed, what management systems and processes will you require?

A capable CFO will give strategic management to help your company achieve its objectives.