Not only that, in a clear context of financial tension and liquidity crisis, the CFO will have to reaffirm the strategic value of its role, placing itself alongside the CEO in defining a new strategy and business model, but first of all through a timely evaluation and redefinition of the company’s financial structure.
The CFO services for small business will, in fact, encourage the implementation of all functional actions aimed at improving cash flow and optimizing investments, favoring those who look to the future and which in particular are aimed at digitization (and possibly conversion), thus as well as financing choices to guarantee the sustainability of the latter with respect to the company’s debt capacity (especially with reference to the short term).
CFO as a Guide for CEO
The CFO will be able to guide the CEO or he will even be able to emphasize his role by assuming the governance of these actions which, among others, can materialize in acquisitions of strategic companies aimed at achieving economies of scale or strengthening the position of the company in any new markets rather than, conversely or in parallel, in the realization of a disposal plan useful to reduce the overall debt. And again, the CFO will have to aim at the pursuit of efficiency through the rationalization of costs without this being implemented through linear and indiscriminate cuts from resources to investments, but, conversely, through simplification of processes (not only those of Finance) to reap the benefits of digitization also with the introduction of innovative tools, such as artificial intelligence and predictive analyzes.
Competitive Advantages with Economic Recovery
Before the explosion of the new Coronavirus, the business owners repeatedly stressed the importance of the role of the CFO as leader of the digital transformation. This is even more true today as it is fundamental to invest in digital tools and technologies, as well as in the acquisition of new skills. Even so, the company will be able to gain a competitive advantage over competitors at the time of the economic recovery.
Significance of a CFO in a Company
The CFO will clearly play a very important role also in the company registration in USA, preparation of the business plan, given the importance of presenting a convincing document in order to arouse the interest of investors and financiers. Hence the importance of the economic and financial forecasts formulated in the plan, which can be accompanied by a sensitivity analysis capable of illustrating how much and how the expected results are changed, changing the assumptions underlying them, and identifying next to a neutral scenario (normal case), defined on the basis of the assumptions on which the plan rests, also a pejorative (worst case) and an improvement (best case). But it is useful to reiterate it, the most reliable and flexible economic and financial forecasts must be based on a valid strategy and on a winning and above all feasible business model.
But behind the risks and the deepest uncertainty, there are always opportunities: the company will be able to play ahead of other competitors and diversify its production, identifying more profitable new products and services, redefining the supply chain, restructuring and digitalize the processes, review the strategy and, therefore, the business model adopted. it will be much more complex for the CFO to guarantee effective oversight of the planning.