The digital age has caused many of the roles in the business sector to change significantly or adapt to new scenarios.
One of them is that of financial director, a position that for several decades was linked to senior management and the management of the different capitals that are part of an organization. The image of that businessman in a closed black suit, who seemed to move in a world of figures and data, was common.
Today it is not quite like that anymore. Although the chief financial officer retains some of the essence that has traditionally characterized him, the changes in the environment have made his field of action expand to new spheres and activities.
Most Popular Roles of a Chief Financial Officer
The virtual CFO India is, without a doubt, one of the key figures for the smooth running of any company. Your mind works under one premise: profitability. For this reason, it must seek the most favorable opportunities offered by each context to guarantee the sustainability and positioning of the company.
Before exploring in depth the new profile of this professional and the different challenges he faces in the 21st century, let us review the most characteristic functions of a financial director in the daily exercise:
Manage the liquidity of companies:
Liquidity is not just about credit or sales. It is everything that allows companies to meet their highest priority cash needs and make good cash forecasts. Without sufficient liquidity, it is not possible to meet monetary commitments or draw up medium or long-term plans. The CFO makes a thorough assessment of his clients and the market in which the company operates, and from there makes decisions one way or the other.
Implement a system for cost control:
Of course, it must be made clear that it is not only about obtaining liquidity to spend money on anything; much less to invest it in areas that are beyond our financial possibilities. A good director applies criteria of efficiency, control and responsibility to know what resources are invested in and what is the value that each action supposes for the company.
Analyze investment possibilities:
Logic speaks of investing to make a profit. However, before any decision in this regard, the CFO must carry out a preliminary analysis of the real need to do so, profitability, the possibilities of success and, of course, the form of financing. As far as possible, you should develop an investment plan in each case and extend it to the top management.
Get bank financing:
Many companies depend on the capital provided by banks or credit institutions. The chief financial officer must lead this process in the best terms, argue why his company deserves the credit he is requesting and justify that he is capable of meeting the demands that this entails. The most important thing is to ensure that the financing meets the short, medium and long-term needs of the incorporate company in USA and that it meets the terms in terms of interest and payments.
Promote alternative market projects:
Another way to ensure the liquidity of a company is to look back at other markets or scenarios. It is also up to the CFO to be aware of the most representative movements in his commercial environment and to have sufficient vision to know when to bet on a new market niche or a path that had not been contemplated before. The venture into alternative markets is generally linked to the internationalization process.