Chartered accountant’s body holds meet for the senior members. The Southern India Regional Council organised an official meeting for the professionals working as CEO and CFO in big corporates. The production cost and profit are industry-specific. The agriculture sector envisages high production costs and less profit. To identify the cost that increases the cost of production, the farmer needs to maintain the records of the farming process. In agriculture, the land cost, tools, machinery, buildings and animals are the fixed cost. The cost incurred for the irrigation, fertilizers, manure and labour is recorded as a variable cost. ICMAI president, Mr P.RajuIyer spoke about agro-cost management at the CEO and CFO meeting. Cost accountants contribute to economic development.
The agriculture sector is the backbone of India. The professionals with diverse interests in cost management help the growth of the industries. He also spoke about assurance services. Assurance services provide the crucial data from the business events to help in the decision-making process. The performance of the business increases with transparency and data management. Information about e-commerce business, health care performance, technology, business risk management and performance educate the business operations. Analytics help professionals make better decisions. Internal auditing checks the performance and helps for taking appropriate decisions. The blog talks about the lifeblood of chartered accountants and cost accountants that transform them into CEOs and CFOs.
Decision making:
Decision-making is the primary job of CEOs. CEO think about the workforce, customers, technology, and financials. Workforce increase productivity and quality standards. The flaws with the product increase the competition. Customers’ buying behaviour depends upon their taste and status. As we are facing economic instability, the sales cycle and marketing strategies are changing according to the needs. CEOs understand the buying behaviour corresponding to the price and demand. Human resource management and adapting the buyer behaviour help the business leaders win over the competition. Technology and finance are the two big departments shouldered by highly skilled personnel. The role of the CEO with the CFO experts is to discuss with them the ideas and finalise the plans. IBM CEO Graeme Butterworth says that visual dashboards, simulations and scenarios provide insights into the actions. The experts need to change the data into analytical information with visual and real-time models.
The focus points of a CFO are pricing, selling, and manufacturing. They deal with short-term and long-term issues. They manage the teams, products and country-specific objectives. They take care of operational and financial data. They understand the dynamics and economics of the business.
Strategic planning:
CEOs think about the industry structure and goals of the company before introducing new plans. He checks the relevance and benefits of strategic planning. Corporate governance, corporate social responsibilities and ESG factors are the things that relate to the vision and mission of the company. CEO pays attention to the branding of the company during the execution of the plans.
CFOs think about the timeline, team size, team performance, internal inputs of the plan, and external inputs of the plan, and metrics to measure progress before executing strategic plans. The common mistakes during strategic planning are skipping steps, allocating tasks without training, neglecting progress-related measures, and failing to check the supporting data. CFOs execute the plans with an understanding of the time, customers and market.
Internal auditing:
Internal auditing shows the areas where risk management is essential to the employees. The audit committee assist the board as a sub-committee of the company. The committee executes the auditing functions through CEOs and CFOs. The four stages of auditing are planning, fieldwork, preparation of audit report and reviews from the board and others. Internal audits help identify the strategic risk, cyber risk and investment risk.
What is the difference between CEO and CFO?
What do CEOs want from their CFOS? Chartered accountants work as CEOs and CFOs. The CEO is in the highest position, and he expects a lot from CFO. The following points illuminate the above statement.
• CEO is responsible for the operations. CFO takes responsibility for different operations in finance.
• The CEO and CFO both are the board members. Reporting is common to both CEO and CFO. CEO reports to the director. CFO report to the CEO and board members.
• CEO frames the strategy after checking the data from different departments. CFO plan the budget with financial and human resources.
• CEO perform duties and makes business decisions. CFO performs duties. He focuses on activities related to hiring, training, communicating and operating.
• CEOs come from financial and non-financial backgrounds. CFOs come from a financial background.
Popular personalities as CEOs and CFOs:
The role and expectations of a CFO and CEO from the employees are different. CEOs have analytical and managerial skills. They give importance to managerial talent and high propensity. Trust, confidence, critical thinking, reliability, passion, trustworthiness, inspiration, reliability and curiosity are the factors that drive the CEO. CEOs are studious and skilled persons who get an immediate job opportunities. All the top CEOs of America possess an MBA degree or finance-related professional course. Finance is an apt subject for understanding the business. Walmart CEO Doug McMillon had completed his MBA degree from the University of Tulsa. The president and CEO of Amazon, the largest e-commerce company had an MBA degree from Harvard business school. Mary Barra, General Motors, works as CEO. She is an electrical engineer with an undergraduate electrical degree. She got his MBA degree from Stanford University. Google, the largest search engine company CEO SundarPichai is a metallurgical engineering student. He has his MBA degree from Wharton School of the University of Pennsylvania. Rajesh Megow is a chartered accountant. He is the director of Flipkart, an e-commerce company, and he is the co-founder of Makemytrip.com. The connecting thread among the top management professionals is technical and financial knowledge.
Conclusion:
Biodiversity brings a healthy environment to nature and work. CEO, CFO and senior manager are the different roles that add quality to the working environment. The ranking is the difference between the CEO and CFO. Director holds the first rank. CEO holds the second rank, and CFO holds the third rank. The top three ranks are the reason for successful business strategies. Chartered accountants and cost accountants explore the challenges at a young age. Becoming CEO and CFO is essential for creating an efficient business community.
