Role of CFO : Changing with time

The traditional work of the Finance department limited to purchasing and payables, sales and receivables, providing and managing accounting information is changing. With the growth of the new economy a CFO or a Financial Manager is required to think and act more like a VC within the company. Forward thinking CFOs are expected to develop new business model, leverage resource utilization, incorporating rolling plans, promoting innovation labs and other idea generators, incorporating technological advancements and highlighting the corporate strategy within the company. Phasing out long drawn time consuming budget measures and incorporating KPI is another important strategy being used by the CFOs. KPI or the Key Performance Indicators can be better aligned to the corporate strategy. Effective use of technology can also help the finance department reduce the overall expenditure and consolidating the information used different departments and divisions by installation of ERP systems. Investing in security of the company intranet and extranet is always a good investment. In cases of Mergers and Acquisitions either domestic or global, proper research and planning should be conducted by the finance department to check the viability and long term benefit of the project. Thus CFO or the entire finance department should work both with the management as well as the employees, assist the management and CEO to take effective decision by conduct research, surveys, and analysis to maintain and develop a financially strong company