10 characteristics every CFO should have
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What is a CFO?
The CFO has a much bigger role than you might think. The CFO is the person who makes all the decisions related to the financing of a company and is in charge of drawing up a strategy to make the business continue to grow. This position is characterized by having a broad vision of everything that happens in the company since it is in charge of both management, control and financial analysis. That is why in some cases, especially in medium and small companies, this position coincides with that of General Manager.
In addition, this position requires a good control of the business cash flow thanks to a correctly drawn up strategy. The CFO will be in charge of making budget decisions, reducing costs and increasing profits. Do you understand now why we say that it has such an important role in a business? We could almost say that the future of the company is in your hands.
So much responsibility and pressure means that not everyone is suitable to be the CFO of a company. Even so, for all those people who want to access this position or who already are and out of curiosity you want to know if you meet the requirements, we bring you 10 characteristics that every CFO should meet .
What characteristics does a financial director have to meet?
1 # THEY DEVOUR INFORMATION AND ARE IN A CONTINUOUS LEARNING PROCESS
CFOs constantly recycle their knowledge to adapt to the different changes that consumer behavior, current regulations or technology may experience. The CFO should know the theory and practice of money and capital markets.
2 # UNDERSTAND THE BUSINESS MODEL
As we have seen previously, some of the tasks of the CFO, such as cash flow optimization or cost reduction, imply the need to deeply understand the business model of each company in order to make the right decisions. That is why it is common to find CFOs who have gone through various positions within the same organization.
3 # EXTENSIVE KNOWLEDGE IN FINANCIAL ACCOUNTING
As we mentioned at the beginning of this post, a person who aspires to be a financial director will have to have a lot of accounting knowledge. Only then will you be able to set the indicators and monitor the performance of the company. This position requires the capacity for numerical analysis, the use of spreadsheets and the development of business plans, among others.
4 # ADAPTABILITY
Change is the only constant in life and the CFO must always keep it in mind. Knowing how the company can adapt to change and knowing how to implement the necessary measures to adapt to it is one of the most important characteristics a CFO must have. Only in this way can a problem be transformed into an opportunity.
5 # BE A LEADER AND HAVE A LONG-TERM VISION
Leadership is one of the most in-demand skills of a CFO; after all, it is still a management position. He will have to lead a financial team to which he will have to provide day-to-day motivation for it to succeed, apart from his knowledge.
In this position we will have to create goals and objectives to meet monthly. A flexible schedule and more freedom of decision are two ways to create a conducive work environment so that the team is much more motivated.
6 # BE A DISCREET PERSON WITH ETHICAL VALUES
A large amount of sensitive information passes through the hands of a CFO that in many cases, surely will not have to leave the company in which he develops his work. The person in charge has to gain the trust of his colleagues, his bosses and that of other interested parties. That is, you will have to be a person committed to everything you do and with strong ethical values.
7 # KNOW THE LOCAL AND GLOBAL FINANCIAL REGULATIONS
A good CFO will always have to keep in mind the interests of the company itself. In this sense, it is important that you know all the regulations of both local and global control bodies and avoid the company an error that could cost you a fine.
8 # BE A GOOD NEGOTIATOR
One of the most important daily tasks of a CFO is negotiating the best sources of financing for the company, a responsibility of vital importance for the business. In this position, you will always have to look for the best option that benefits the company as much as possible.
9 # ABILITY TO MANAGE RISK
Being able to confidently recognize, quantify and manage risk will aid management decision making. This is a very important point at times such as when the company begins to expand or we find new emerging markets where there is an opportunity for growth, but also risk. Facing calculated risks is a staple characteristic for great CFOs.
10 # LEARN THAT YOU CANNOT ACHIEVE PERFECTION
Throughout the post we have dedicated ourselves to listing all the good characteristics that a CFO should have. This is not to say that you are never wrong about any of the things mentioned above. All human beings are imperfect and it is normal to make mistakes. It is not good to put too much pressure on yourself.
The CFO also has to learn that he has strengths or weaknesses. Sometimes it is a good option to know yourself and hire an additional person who complements those weaknesses that the CFO himself may have. Only in this way will we achieve all the objectives that we have set for ourselves.
The CFO has a much bigger role than you might think. The CFO is the person who makes all the decisions related to the financing of a company and is in charge of drawing up a strategy to make the business continue to grow. This position is characterized by having a broad vision of everything that happens in the company since it is in charge of both management, control and financial analysis. That is why in some cases, especially in medium and small companies, this position coincides with that of General Manager.
In addition, this position requires a good control of the business cash flow thanks to a correctly drawn up strategy. The CFO will be in charge of making budget decisions, reducing costs and increasing profits. Do you understand now why we say that it has such an important role in a business? We could almost say that the future of the company is in your hands.
So much responsibility and pressure means that not everyone is suitable to be the CFO of a company. Even so, for all those people who want to access this position or who already are and out of curiosity you want to know if you meet the requirements, we bring you 10 characteristics that every CFO should meet .
What characteristics does a financial director have to meet?
1 # THEY DEVOUR INFORMATION AND ARE IN A CONTINUOUS LEARNING PROCESS
CFOs constantly recycle their knowledge to adapt to the different changes that consumer behavior, current regulations or technology may experience. The CFO should know the theory and practice of money and capital markets.
2 # UNDERSTAND THE BUSINESS MODEL
As we have seen previously, some of the tasks of the CFO, such as cash flow optimization or cost reduction, imply the need to deeply understand the business model of each company in order to make the right decisions. That is why it is common to find CFOs who have gone through various positions within the same organization.
3 # EXTENSIVE KNOWLEDGE IN FINANCIAL ACCOUNTING
As we mentioned at the beginning of this post, a person who aspires to be a financial director will have to have a lot of accounting knowledge. Only then will you be able to set the indicators and monitor the performance of the company. This position requires the capacity for numerical analysis, the use of spreadsheets and the development of business plans, among others.
4 # ADAPTABILITY
Change is the only constant in life and the CFO must always keep it in mind. Knowing how the company can adapt to change and knowing how to implement the necessary measures to adapt to it is one of the most important characteristics a CFO must have. Only in this way can a problem be transformed into an opportunity.
5 # BE A LEADER AND HAVE A LONG-TERM VISION
Leadership is one of the most in-demand skills of a CFO; after all, it is still a management position. He will have to lead a financial team to which he will have to provide day-to-day motivation for it to succeed, apart from his knowledge.
In this position we will have to create goals and objectives to meet monthly. A flexible schedule and more freedom of decision are two ways to create a conducive work environment so that the team is much more motivated.
6 # BE A DISCREET PERSON WITH ETHICAL VALUES
A large amount of sensitive information passes through the hands of a CFO that in many cases, surely will not have to leave the company in which he develops his work. The person in charge has to gain the trust of his colleagues, his bosses and that of other interested parties. That is, you will have to be a person committed to everything you do and with strong ethical values.
7 # KNOW THE LOCAL AND GLOBAL FINANCIAL REGULATIONS
A good CFO will always have to keep in mind the interests of the company itself. In this sense, it is important that you know all the regulations of both local and global control bodies and avoid the company an error that could cost you a fine.
8 # BE A GOOD NEGOTIATOR
One of the most important daily tasks of a CFO is negotiating the best sources of financing for the company, a responsibility of vital importance for the business. In this position, you will always have to look for the best option that benefits the company as much as possible.
9 # ABILITY TO MANAGE RISK
Being able to confidently recognize, quantify and manage risk will aid management decision making. This is a very important point at times such as when the company begins to expand or we find new emerging markets where there is an opportunity for growth, but also risk. Facing calculated risks is a staple characteristic for great CFOs.
10 # LEARN THAT YOU CANNOT ACHIEVE PERFECTION
Throughout the post we have dedicated ourselves to listing all the good characteristics that a CFO should have. This is not to say that you are never wrong about any of the things mentioned above. All human beings are imperfect and it is normal to make mistakes. It is not good to put too much pressure on yourself.
The CFO also has to learn that he has strengths or weaknesses. Sometimes it is a good option to know yourself and hire an additional person who complements those weaknesses that the CFO himself may have. Only in this way will we achieve all the objectives that we have set for ourselves.
Do you want to learn more about Recruitment then check this website www.fdcapital.co.uk
