There are a lot of people involved in the running of a business, but few are as important as CFOs. The role of a CFO has long been focused on business growth, financial health and stability, and overcoming financial and growth challenges when they arise. But, with increasing economic instability and technological advancements, things are changing for CFOs and the finances they manage. In this blog, we’ve taken a look at CFO perspectives on the future of finance for business, and why a growing number of SMEs are making use of CFOs through outsourcing.
The Role of CFOs is Changing
As finance leaders, CFOs are facing an increasing list of priorities, responsibilities and things to do, and balancing everything is becoming more and more of a challenge. The role of a CFO is diverse, evolving and critical to the success of a business; CFOs are there to help in a crisis, lead teams, handle the financial planning and reporting, and stand alongside the CEO to drive the business forward. But, there are a growing number of things that require their attention, such as supply chain disruption, digitisation and changing consumer demands. As businesses navigate an evolving economic landscape, CFOs are finding themselves increasingly shaping financial strategies in a new way. According to recent insights, the future of finance is starting to look slightly different for CFOs, changing their day-to-day responsibilities and making their role even more important.
What’s in Store for Business Finance Going Forward?
As the senior executives responsible for managing a business’ financial activities and ensuring its economic stability, CFOs are the ones in the know about the future finance for business.
- CFOs Have Stable Growth Expectations
For a lot of CFOs, industry growth rates remaining steady is likely, but few are confident enough to feel optimistic about any major growth. A number of CFOs expect their business’ investment levels to hold steady going forward, a noticeable shift from recent trends, which saw many CFOs anticipating increases. Despite some easing of inflation concerns, a lot of CFOs still see supply chain disruptions as a significant threat to growth. Economic uncertainty also remains to be a key risk factor, causing CFOs to focus on adaptive, forward-looking financial strategies that can weather this uncertainty.
- CFOs are Focusing on KPI Management and Strategy
Operational value drivers and KPI management remain as a key focus of CFOs. But, there is a growing focus on long term planning and allocating resources effectively, which reflects a clear shift towards financial strategies that focus on the future. A lot of CFOs now prioritise resource planning, ensuring that businesses have enough resources to continue hitting the same targets.
This focus on KPI management and future-proofed strategy suggests that CFOs are looking beyond immediate hurdles, and are instead focusing on making sure their businesses are prepared and able to adapt to future challenges, ensuring emerging opportunities are within reach.
- CFOs Are Embracing Automation, AI and Digitisation
There’s no denying that digital transformation has taken hold of almost every industry, and CFOs are jumping on board. It’s quickly become a top priority for CFOs, with the majority investing in digitisation and automation in some way. However, the uptake of new technologies and digitalisation has been somewhat uneven, with businesses implementing it in some areas, but not others. There’s still a lot of room for growth, and CFOs expect this to happen in the coming years. It’s a similar story with AI, which gives businesses a deeper insight into data, strategy and financial growth. CFOs expect a lot from these technologies, especially when it comes to competitor insights and accounting, but only a small percentage of CFOs currently have AI in place.
- CFOs Workloads are Growing
The role of a CFO has always been a demanding one, but workloads are starting to increase, asking even more of finance leaders. The duties of a CFO include overseeing financial planning, budgeting and forecasting, as well as analysing data to guide financial decisions. But, with digitisation and AI implementation, there are a few more things to throw into the mix. Part of the reason for low digitisation rates could be due to this increasing workload. CFOs already face demanding workloads and this, along with a lack of resources, make embracing digitisation and AI more challenging.
With so many responsibilities falling to CFOs, and the job being more important than ever, it’s easy to see why a number of small and medium sized businesses are turning to outsourced CFO services. Running a SME comes with unique challenges, especially when it comes to managing finances. While larger businesses have dedicated CFOs to handle their financial strategy, budget and health, SMEs often lack the resources to hire someone on a full time basis. But, outsourcing bridges this gap.
What is an Outsourced CFO?
An outsourced CFO is a financial expert who provides leadership and guidance to businesses, with a sole focus on financial health and stability. With our business consultancy services, we focus on SMEs, taking on the role of CFO and providing the same strategic insights and expertise as an in-house CFO but on a flexible and cost effective basis. We work with businesses to streamline finances, optimise cash flow, develop growth strategies and provide valuable insights, all with the aim of overcoming financial hurdles and guiding your business towards success.
- Cost-Effective Expertise – For SMEs, hiring an in-house CFO can be expensive, but an outsourced team is a budget-friendly alternative. Outsourced CFOs deliver the same level of expertise, guidance and knowledge, but without the long term, ongoing financial commitment. At Profici, we enable businesses to access senior financial insights at a fraction of the cost of hiring a CFO.
- Strategic Financial Guidance – An outsourced CFO doesn’t just manage numbers, they help to create actionable strategies, making sure the right financial goals are being worked on. Whether it’s scaling operations, managing investments or preparing for market fluctuations, our business consultancy experts ensure that your financial decisions align with your business goals.
- Cash Flow Management – A lot of smaller businesses struggle with cash flow, simply because there’s not a big pot of cash to take from when an unexpected cost arises. This can make it difficult to maintain effective daily operations and take advantage of last minute opportunities, but an outsourced CFO can help. We analyse cash flow patterns, optimise receivables and payables, and forecast future needs to ensure that your business stays financially healthy and prepared for any growth opportunities that come your way.
- Scalable CFO Support – As your business grows, so will your financial needs. In fact, your financial needs are likely to become a lot more complex and harder to keep on top of. An outsourced CFO provides scalable services that evolve with your business, offering support for everything from securing funding to handling mergers and acquisitions. We simply scale our CFO services to keep up with your needs.
The Importance of Financial Leadership for SMEs
As CFOs know, the future of business is hard to predict and there’s no knowing what’s right around the corner. Without a strong financial strategy, SMEs are unlikely to keep up with prepared, financially stable competitors. Whether it’s rising costs, supply chain disruptions or economic uncertainty that you’re facing, having a clear understanding of your financial position is key, as is having a plan for when something goes wrong financially.
If your business is experiencing growth or struggling with financial uncertainty, an outsourced CFO could be the solution. By providing expertise and support, without the overhead costs and commitment of an in-house expert, outsourced CFOs give SMEs the financial leadership needed to thrive. Get in touch with Profici to find out more.
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