Successful innovation isn’t accidental: ideas need to be tested, resources allocated, assumptions validated, the business prepared for change, and progress measured.
The pandemic has helped to reinforce the value of a good CFO by showing that the skills of a finance function go well beyond data processing. As we grappled with lockdowns and restrictions, cashflow forecasting and solid fundamentals made the difference between survival and disaster – and it was the skills of CFOs and their finance teams that saw many businesses through.
Most businesses are out of survival mode and looking again for ways to grow their business and generate new revenue streams. This involves exploring new ideas, whether it’s making use of new technology, a new business line, or perhaps even an acquisition. And once again, an experienced CFO will make all the difference.
The CFO role offers more than just a reporting function. Arguably, no one has a better overall understanding of the business than a CFO, because they see critical data across the entire organisation and have the skills to transform that data into a coherent story of where the business is, and where it could go.
CFOs are adept at using advanced systems and data analytics to generate highly valuable insights into how the business is functioning and the likely impact of investments and decisions when it comes to innovation.
An experienced CFO will encourage and challenge the board or business owner to think rationally and deeply about an idea and what it could bring to the business:
- What does success look like in this scenario?
- What are the critical KPIs that we want to move?
- Will this generate sustainable profits, or just temporarily boost the top line?
This analysis helps the board members in making clear, intelligent decisions. It might help them see that an appealing idea is not, in fact, quite right for the business. Or persuade them that the best investment in new technology is on high-quality systems that drive efficiency across the business. The CFO’s analysis acts as an informed defence against overoptimism or unfounded negativity.
In short, an experienced CFO will help a business make better decisions. This is our ultimate goal with BKL Advance’s CFO service: to provide growing businesses, who cannot yet justify the expense of a full-time CFO, with all of the experience and insight that a seasoned professional can bring. We can provide the analysis and guidance that helps business owners make sound decisions that will drive the company forward.
For more information about how our outsourced CFO service can help you, please get in touch with your usual BKL Advance contact or use our enquiry form.