The future of the chief financial officer seat and finance function is being built atop contemporary transformations. Transformations that are increasingly being driven, in turn, by contemporary business needs. That’s because, given the realities of today’s shifting macro backdrop, CFOs are more and more turned to as the standard bearer of financial truth within their organizations.
“The CFO and the CEO are really the two positions that see the entire business,” Ken Gayron, CFO at CSI, told PYMNTS.
He said the future of the finance function, no longer confined to traditional accounting and financial reporting tasks, is one of strategic partnership, data-driven decision-making and continuous innovation.
“Being a modern CFO is about using your analytical and financial skills to partner with the business, ensuring it makes the best decisions with the right financial lens. At the same time, you have to drive efficiency through automation and process improvement so that you can scale profitably and maintain a competitive advantage,” Gayron said.
In today’s fast-paced business landscape, it is crucial for firms to lean on a finance function that has transitioned from merely reviewing past results to being more forward-thinking, understanding market trends and customer needs, and applying a financial discipline to key metrics to help the business make informed decisions.
This data-driven approach allows CFOs to allocate capital and resources more effectively, focusing on opportunities where their companies have a competitive edge, said Gayron.
Modern CFOs are expected to be strategic partners, providing invaluable insights and guidance to shape the long-term direction of their organizations — an emerging reality that makes cross-departmental communication and collaboration even more paramount than they were previously.
“We’re constantly communicating as senior leaders on a daily basis,” Gayron noted, highlighting that digital innovations have made socializing key financial data and information increasingly easy and seamless.
That’s because the finance toolkit has undergone a remarkable evolution in recent years, with real-time dashboards and business intelligence (BI) tools replacing traditional processes.
“It used to be all based in Excel, with people inputting data and sending spreadsheets via email,” Gayron said. “Now, it’s all real-time, using powerful BI dashboards that pull data automatically. People can access this information on their mobile phones or laptops at any time, making data-driven decisions more seamless.
“We have to build scale in the organization, so technology isn’t just confined to the finance office,” he added. “It’s about automating processes across the board to gain efficiencies. As CFOs, we must communicate the benefits of these initiatives and secure buy-in from the leadership team to drive continuous improvement.”
It’s becoming more important than ever for CFOs to work to cultivate a high-performing finance team. Gayron stressed the importance of aligning his team with the organization’s overarching strategy and growth objectives while fostering a growth mindset and promoting inclusivity and diversity.
“Having a diverse team is key because it provides different perspectives, and that leads to better decision-making,” he said. “We have a diverse, global customer base, and we want to ensure we have a diverse mindset as we solve customer problems.”
After all, in the rapidly changing operational landscape, understanding and anticipating customer needs can be the difference between business growth or stagnation.
At the same time, in the face of rising interest rates and economic uncertainty, the role of treasury management within the finance function has become increasingly critical. Gayron underscored the importance of effective cash flow management, working capital optimization, covenant compliance and risk mitigation strategies like hedging.
“When rates are high, it’s a really important process because you’re managing the cash flow of the company, the working capital, the balance sheet,” he said. “You’re making decisions on payments, helping to get past dues collected, looking at covenant compliance and hedging. It’s a strategic position because you have to think about managing the risk of the organization in terms of the balance sheet.”
Looking ahead, Gayron said the ongoing transformation of the CFO role and the finance function will be marked by its increased strategic involvement, enhanced collaboration, and the adoption of advanced digital tools. By embracing both innovation and change while fostering a culture of continuous improvement, the finance function will continue to play a pivotal role in shaping the future of organizations.
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