The Expanding Role of the CFO

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The role of the Chief Finance Officer (CFO) is not what it used to be. Traditionally, CFOs had very compartmentalized roles and responsibilities related to financial reporting, budgets and projections. As the corporate environment evolves and the demand for cross-department collaboration increases, the role of the CFO has expanded significantly. Today, CFOs are expected to be able to use their financial knowledge and analysis to make a wider impact.

Below are some of the more recent factors that have caused the role of the CFO to expand:

  • Technology: According to a 2022 survey, 82% of CFOs said their investments in digital are accelerating exponentially. While accelerating digital transformation can enhance efficiency and productivity, it also puts new pressure on finance departments to stay current. As companies adopt more advanced digital tools, it’s the CFO’s job to ensure the finance department can stay updated while also being able to provide meaningful insight into future trends.
  • Value: The value of a company is no longer solely about earnings per share or revenue. Value is now also associated with environmental, social and governance (ESG) initiatives, corporate and social responsibility and more. The CFO is now responsible for supporting these newer determinants of value, in addition to the preexisting financial value of their company.
  • Department Responsibilities: Finance department are also expanding beyond traditional accounting, finance and treasury responsibilities, taking on the role of measuring and reporting a business’ broader goals. As the department’s role expands, the CFO’s role expands.
  • Forecasts: With the ability to communicate and track spending across different departments, CFOs are expected to remain in the know about most company activities. With this cross-department knowledge, they should be able to make accurate predictions about how the company will perform in different scenarios. In an ever-evolving corporate landscape, it’s common for most roles to shift and expand over time. While the role of the CFO has expanded significantly over the past few decades, it’s safe to say that the role itself is not going anywhere, as CFOs continue to be a vital piece of the corporate puzzle

If your organization currently lacks a CFO or your finance department could use additional expertise, personalized financial support from a trusted third party might be the solution you need. We encourage you to schedule a one-on-one call with SST Accountants & Consultants to learn about how we can support your organization’s long-term success.

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