The questions posed by the job market watchers are as follows: Why do people want to be CFOs? Is CFO a good position? Andwhy your business needs a CFO? The fact is that the high demand for CFOs creates career opportunities. Deloitte, a multinational professional services network, says that the role of a CFO has four faces. The four faces of the CFO are steward, operator, strategist and catalyst. The year 2020 to 2021 brought challenges to the business world. The word “uncertainty” push finance professionals to think of multiple methodologies. A CFOs job is to create a strategy for converting the challenges into opportunities. Working capital management is a crucial part, and it helps in managing the short term liquidity and cash flow of the business. The operating cost and margins are difficult decisions as there is a rise in the supply chain cost, raw material prices, and wages. The reduction in revenue generation and increase in the interest rate also influence the business. CFOs believe that the cost of debt should be as low for the year 2022. The industries are expecting monetary policy support from the government and banks.
In 2022, the life sciences and automobile industry act with defensive measures. India is showing high performance in the automobile industry. The four-wheeler and two-wheeler markets perform well. The reason for the high performance is the low labour cost, low steel cost, and robust research and development centres. One of the research companies surveyed the CFOs of top MNC companies. The result reveals that more than 49 per cent of CFOs expect the year 2022 as optimistic. The operating margin is expected to rise in the year 2022. The customer acquisition cost is going to be the same as the prediction of many CFOs. Organisations want to reduce the operating cost, manage the supply chain, increase the margins, increase the capital expenditure, increase revenue and support digital transformation. To achieve all these targets there is a need for the masterminds. Cost accountants and chartered accountants are suitable for the CFO role. This blog highlights the demand and value of CFO professionals in the finance industry.
What is the market demand for CFO?
CFOs need leadership skills, operational ideas, industry expertise, long term vision, investor relations, and global market knowledge. Credibility is a thing which is difficult to regain. It has to be maintained in the popular industries. The skill that most companies look for is to handle shareholder activism. Companies are looking for sitting CFOs who can hold the position for a long tenure. The long term plans take time. So, the experience and tenure of CFOs play a vital role in the companies. International exposure and data analytics play a secondary role in CFO skills. The candidate should understand the client acquisition from the global and domestic markets. The customer data from the domestic and global markets decide the strategy of the business. The candidate must have a vision of the return on investment. This provides operational skills and partnering thinking to the CFOs. Risk management is the fourth skill that companies expect.
The chief financial officer discusses with the CEO. And then CFO provides insights into the financial reports, time management, budgeting and pricing. They are jointly responsible for the business decisions. CFO controls the financial plans, capital structure, income, expenditure, funding, cash flow and tax consultations. CFOs follow the regulatory changes and GAAP. In his work with the upper management, companies see the track record before doing appointments. The strategies of CFOS need to perform on the global stage. Inflation, supply chain differences, client acquisition, merger and acquisitions are creating different types of risk to the organisation. There is a growing demand for the analytical skills of a Chief executive officer.
How cost accountants and chartered accountants are suitable for the CFO role?
The below points elucidate the tasks that the chief financial officer performs. Chartered accountants and cost accountants are suitable for the role of chief financial officer. The high qualification, experience and track record of performance are essential for the role of Chief financial officer. Financial information is the backbone of business decisions and capital market performance.
The chief financial officer takes care of the credit system, cash management, budget administration, and accounting process.
Periodically the officer will prepare documents such as business activity reports, financial statements, forecasts of finance, budget, board meeting requirements and regulatory agencies’ demands.
They control the major departments such as accounts payable, accounts receivable, debt management, purchase, investments and pricing department.
The value of the business must be expressed to the financial community or shareholders effectively. CFOs take care of this. They reflect the trust, and value of the Company.
CFOs analyse the numbers ad competition in the business environment. Financial qualifications in chartered accountancy and cost accountancy with solid experience serve the companies with complex problems.
Inflation and global market strategies thrive the industries a competitive edge. Finance professionals with experience are in demand in the major sectors. The domestic and global job market shows that finance professionals have the capability of increasing profitability. Analytical skills, financial modelling, business intelligence, financial reporting, financial management, cash flow management, communication and data management are the sought skill for finance professionals. The area of expertise and track record impress the recruiter before the interview. The products and services developed by the top-level companies require ideas and innovation. The growth of the top companies is measured in terms of money. The finance professionals only can balance the growth and save the companies from loss. Chartered accountants and cost accountants with experience in different industries are most needed in the prevailing circumstances. The career options after gaining experience create enthusiasm for the students to learn intensively and achieve great heights.