The position of administrative and financial director, usually known as CFO, is one of the company’s key jobs. Its objective is to plan and implement the firm’s financial strategy (project financing, corporate buyouts, subsidiary restructuring, and so on), as well as supervise, oversee, and lead the accounting and administrative staff.
The CFO must also be a member of the management committee. In certain firms, he also serves as deputy general manager or head of IT and legal affairs.
Who and why should financial management be outsourced?
Financial management outsourcing is becoming increasingly popular among businesses. What are the benefits? Do the missions of the internal and external CFOs overlap?
Do internal and external CFOs have the same responsibilities?
In principle, sure, but it is apparent that the smaller the company employing the top CFO in India, the more the company’s management tend (logically!) to assign tasks to its CFO partner outside of their basic duty (accounting services, general services, human resources, IT services).
Because even the most skilled in-house CFOs have their limits, this aggregation of duties slows down the development of these organisations… It’s challenging to be exceptional in every way! Difficulties arise when some duties, such as those of the CFO and HRD, are combined, since they tend to promote a high turnover rate.
The external CFO has a comprehensive understanding of his role’s difficulties, which helps the firm improve its performance and better manage the risks it faces.
A financial manager’s day-to-day routine
Financial managers are also known by the titles of financial manager, administrative manager, and financial manager.
The financial manager is in charge of a variety of divisions inside a corporation, including finance, accounting, administration, treasury, and fund management.
He leads his teams and ensures the execution of the company’s financial policy while working under the supervision of a financial director or the CEO. Within a SME, he is usually a member of the management committee and performs his duties.
Professional advancement
You’ll need several years of experience as a financial, accounting, or administrative manager to get a job as a financial manager. Consulting company profiles are also desired.
As a result, the financial manager can advance to roles such as financial, administrative, human resources, or general manager.
What are the benefits of contracting out the work?
Outsourcing the function allows you to rely on a CFO expert/specialist without having to engage a full-time staff at a high level.
Such recruiting costs expensive per year for organisations with less than 100 employees. This budget should be compared to that of an external CFO, which costs less, depending on the size and stage of a company’s life cycle.
Has digitalization affected the way you work or the way you do things?
The digitalization of finance and management control operations presents a huge potential for SME managers and their CFOs in terms of productivity benefits, activity monitoring, and the ease of access to all financial data, jobs, and HR.
SMEs can now have access to technologies previously only available to huge corporations at a lesser cost thanks to these tools. A CFO consulting service can help with the speedy and successful adoption of new, collaborative processes in this situation.
