Surely you have heard in the world of accounting, specifically in finance the term: “CFO”. Today we will review this figure in detail.
Well, the CFO is the director of finance or finance (for its acronym in English: Chief Financial Officer ) of a company. He is the executive in charge of the financial management of the organization. Normally reports to the CEO of the company. The CFO is the official who manages the financial and economic resources within a business organization. You must also optimize them and maximize their performance to make the company a profitable business for all employees and especially for its partners or shareholders. A CFO must have skills that stand out in the fierce business competition. Below we highlight some fundamental skills that a CFO has to guide the companies to a successful development together with their own technical knowledge.
1. Knowledge of the industry in which he acts
The CFO must know the industry in which he works and the key elements of the business. In order to concentrate on the most important points of the operation in the company . With this knowledge, it is expected to generate a much more strategic than operational planning , in addition to anticipating situations that may compromise the development of the organization. For example, the imposition of special tariffs on the raw material that is used in its sector and that could affect the costs of the finished goods it sells. Usually the CFO must have experience in different positions and areas in the company and in the same industry, which will guarantee that he has a global knowledge of the business .
2. Leadership skills
The C FO must be a leader for the organization and especially for its work team. Said leadership should be manifested through the respect of the people, as well as the trust of all its collaborators and should be a model to follow.
3. Communication skills
Communication skills are important to generate a good working environment in the company. This must flow to the key positions of the organization, it must be clear and continuous, to obtain feedback.
4. Strategic vision
The CFO must have developed the ability of strategic vision and concentrate on the important aspects for the operation of the business . With a sense of sensitivity, intuition and anticipation to situations that directly affect the business.
5. Ability to negotiate
Another of the primary skills of a CFO is negotiation in any type of situation . Take advantage of the interpersonal relationships developed over time to create business alliances with third parties related to the business such as authorities, business chambers, suppliers and customers.
6. Technical capacity
Currently there are CFO companies that are engineers, lawyers or public accountants by profession; However, regardless of the professional career that each of them has, it is essential that the CFO has technical knowledge in business administration, legal, economics and finance.
7. Ability to adapt to change
The CFO must have an ability to analyze and anticipate the risks and opportunities inherent to the industry or business sector in which it operates and have the ability to make timely decisions and quickly adapt to new circumstances that represent both a risk as an opportunity The skills of a CFO are necessary and very important to ensure the success of a company . They must undoubtedly combine with a good attitude and passion around the goal and objectives of the company. This will guarantee obtaining positive results for the benefit of all those who make up the organization.