What is CFO? When a Company Should Look For a CFO?

December 8, 2022

Introduction

The Chief Financial Officer (CFO) is responsible for the financial health of the company. Generally, they are responsible for monitoring cash flow, evaluating any strong suits/deficiencies in the company’s finances and guaranteeing all areas of its financial success.

Before we talk about the timing and qualities to look for in a CFO, let’s explore what is a CFO.

Content Outline

What is a CFO?

The Chief Financial Officer (CFO) is a critical figure in any organization. Most notably, the CFO is responsible for preparing and executing financial plans for the company. They are also responsible for keeping financial information current, which will help the Chief Operating Officer (COO) and Chief Executive Officer (CEO) when they have to make decisions.

With the ever-changing business landscape, the role of the CFO is continuously expanding. Businesses are now feeling the pressure of technology, globalization, ever-changing customer demands, and social responsibility. Consequently, the ideal CFO should be a financial expert of the highest quality. In addition to being able to come up with financial plans and strategies that take new trends into account, they must also be good at conveying these ideas to other people in the company or organization, such as investors.

Qualities of a CFO your Company should Look For

Here we summarize the 5 major qualities you should look for when selecting a CFO:

1. Skilled in Financial Management

A CFO’s primary duty in Hong Kong companies is to always be aware of the company’s financial position and performance. Furthermore, they should know how to draw up financial reports and corporate statements to show investors and other interested parties. Furthermore, they must create plans and strategies to increase the productivity of the finance and accounting team.

2. Understanding Business Technologies

Being able to understand and use modern financial technologies is one of the most important skills for a CFO in Hong Kong businesses. It is essential for businesses to implement technology if they want to stay ahead of the competition. Without customer relationship management (CRM), digital marketing, data analytics, cloud computing, accounting and invoice management among other technologies in place, staying relevant will be a difficult task. Project management plays a significant role as well. The CFO is responsible for developing plans to implement these technologies into the company’s regular operations and making sure it all runs smoothly.

3. Outstanding Leadership Skills

Strong leadership skills are important for the CFOs of Hong Kong businesses. Maintaining high standards in the finance and accounting departments is crucial. In some workplaces, management is responsible for keeping an eye on both the HR and legal teams. In the same way, managers should encourage and organize workers to hit the company’s financial targets. In addition, employers should give frequent updates and tips for employees who may be struggling.

4. Taking into account environmental and social responsibilities

All businesses, regardless of size, should support environmental and social responsibility. In recent years, consumers have become more conscientious of how their spending habits affect environmental and social causes. Companies that don’t take care of the environment and have a negative social impact are more likely to be unsuccessful. In addition, many governments now require businesses to meet environmental guidelines. While planning the financial future of their company, the CFO must take numerous factors into account.

5. Completely Committed to your Company

Companies experience much slower growth when the CFO position is frequently filled by new employees rather than someone who displays dedication to their long-term plans and strategies.

When your Company Should Look for a CFO?

When you’re wondering if it’s time to bring on a CFO, ask yourself the following questions:

Who oversees the finance team?

Your finance team is key to the success of your company, but even the best teams still need supervision. Without adequate supervision, your company will not run as smoothly as possible. In this case, a CFO could make sure that your employees are working to their full potential.

To what degree is your financial reporting and interpretation refined?

CFOs need to have a range of abilities that extends beyond an intimate knowledge of accounting. The best CFOs are able to update their ERP software, obtain an MBA or another form of higher education degree, and be versatile in their skillset. If you want someone who is good with numbers and also able to think flexibly and innovatively about the future of your business, then a CFO is the perfect fit.

Having difficulty raising capital?

If you find yourself struggling to raise any new capital, a CFO may be exactly what you need. CFOs are constantly surrounded by data, and they need to be able to understand the reporting requirements for banks and investors. This visibility gives you and the CFO a chance to develop a clear pitch for potential investors.

Do you want to expand into other countries?

Being bogged down in the nitty-gritty details of business is common if you don’t have a CFO, including procedures, tariffs, shipping costs and more. A CFO will ensure that your company’s expansion is a financially smart Investment for the long-term.

How can FastLane help?

Through this blog, we have listed the major qualities needed for a CFO in Hong Kong companies to be prosperous. If you would like to seek assistance, FastLane advisory team is highly experienced in CFO advisory and has held senior finance roles in both fast-growing startups and large corporations. Our CFO advisory not only strategizes but also provides operational financial management services. Our skilled professionals will help you to manage and monitor your financial resources so that you can achieve your desired objectives.