![\"Supply](\"https://www.pymnts.com/wp-content/uploads/2024/06/Supply-chain-uncertainty-management-tactics.png\")
Today\u2019s CFOs increasingly find themselves in a position to actively transform their companies.
\nThis emerging reality is rapidly transforming the nature of both the CFO role and the finance function. Once seen primarily as a steward of financial stewardship, the modern CFO is now a strategic partner in driving growth and innovation within their organizations.\u00a0
\n\u201cThe best CFOs, the most effective CFOs, are the ones that are in the business itself,\u201d Hai Tran, CFO of\u00a0CSG, told PYMNTS during a conversation for the series \u201cA Day In The Life of a CFO.\u201d
\n\u201cExperience counts for a lot in this role,\u201d he added, highlighting how diverse experiences across different companies and sectors can enrich a finance chief\u2019s ability to navigate the unpredictable challenges that come with the territory.
\nAfter all, the CFO\u2019s job today is no longer just about managing predictable financial processes; it\u2019s increasingly about handling unexpected scenarios with agility and insight.
\n\u201cPart and parcel of the requirements of being an effective CFO is how do we handle the surprises. Not so much the regular day-to-day stuff that is easy to predict and manage, but you are really tested when things that are unexpected happen, and experience really helps in those situations,\u201d Tran explained.
\nWithin today\u2019s dynamic environment, one that encompasses challenges ranging from economic fluctuations to the responsible consideration of technological advancements like generative artificial intelligence (AI), having a finance team that is deeply integrated into the strategic fabric of the business is crucial.
\nTran\u2019s own career, marked by stints in various industries and roles, has been a testament to the evolving demands on CFOs.
\nEvery new position, he explained, comes with a steep learning curve for CFOs who want to be embraced not just as enablers, but as equal partners in strategic decision-making, especially when transitioning into new industries that come with their own specific vocabularies and concepts.
\nThe digital transformation sweeping across industries has significantly impacted the finance function. For Tran, digital transformation is fundamentally about becoming data-driven. It starts with collecting raw data and evolves through stages of reporting, analysis and ultimately, providing true decision support. The goal is to leverage data not just for operational efficiency but to forecast and navigate future challenges and opportunities.
\n\u201cThe holy grail for digital transformation is to get to true decision support, where we\u2019re really providing data-driven optionality and information and choices; where we fully analyze the implications of the path that we select,\u201d Tran said, noting that \u201cmost companies don\u2019t get there \u2026 you have to bring institutional knowledge to bear, and that\u2019s where experience matters.\u201d
\nFortunately for modern finance functions, AI and machine learning are proving to be pivotal in this transformation, providing tools for predictive analysis and operational automation.
\nTran explained that while generative AI is relatively new, existing AI technologies have been integral to finance for some time. At CSG, he said, they are exploring how AI can enhance productivity and are integrating AI capabilities into their products to add value to customers.
\nIn a rapidly evolving business landscape, Tran advocated for establishing a model where the finance team works as business partners rather than mere enablers. This partnership approach involves ideating and shaping strategy, not just supporting.
\nAt CSG, Tran has fostered a culture where finance leaders are embedded within business units, acting as de facto CFOs of those divisions. This integration ensures that financial considerations are at the forefront of business decisions, backed by a robust, data-driven approach.
\n\u201cThere\u2019s an obsession about utilizing data to help make the best decisions possible,\u201d Tran said, underscoring the critical role of data in modern finance.
\nAnd for global businesses, risk management exists as a multifaceted challenge. From regulatory compliance across different countries to managing currency and interest rate risks, the CFO\u2019s role in mitigating these risks is vital. Tran stressed the importance of building a culture that is vigilant about risk, one that is proactive rather than reactive.
\nThis vigilance extends to financial operations like accounts payable and receivable, where proactive management of working capital can significantly impact a company\u2019s cash flow and overall financial health.
\nUltimately, the CFO\u2019s role is now more critical than ever. It demands a blend of financial acumen, strategic insight, and operational involvement, positioning the CFO as not just a guardian of the company\u2019s financial health but a pivotal player in shaping its future.
\nFor all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
\nThe post CSG CFO: \u2018True Decision Support\u2019 Is Digital Transformation\u2019s Holy Grail appeared first on PYMNTS.com.
\n", "content_text": "Today\u2019s CFOs increasingly find themselves in a position to actively transform their companies. \nThis emerging reality is rapidly transforming the nature of both the CFO role and the finance function. Once seen primarily as a steward of financial stewardship, the modern CFO is now a strategic partner in driving growth and innovation within their organizations.\u00a0\n\u201cThe best CFOs, the most effective CFOs, are the ones that are in the business itself,\u201d Hai Tran, CFO of\u00a0CSG, told PYMNTS during a conversation for the series \u201cA Day In The Life of a CFO.\u201d\n\u201cExperience counts for a lot in this role,\u201d he added, highlighting how diverse experiences across different companies and sectors can enrich a finance chief\u2019s ability to navigate the unpredictable challenges that come with the territory.\nAfter all, the CFO\u2019s job today is no longer just about managing predictable financial processes; it\u2019s increasingly about handling unexpected scenarios with agility and insight.\n\u201cPart and parcel of the requirements of being an effective CFO is how do we handle the surprises. Not so much the regular day-to-day stuff that is easy to predict and manage, but you are really tested when things that are unexpected happen, and experience really helps in those situations,\u201d Tran explained. \nWithin today\u2019s dynamic environment, one that encompasses challenges ranging from economic fluctuations to the responsible consideration of technological advancements like generative artificial intelligence (AI), having a finance team that is deeply integrated into the strategic fabric of the business is crucial.\nEvolving Role of the CFO\nTran\u2019s own career, marked by stints in various industries and roles, has been a testament to the evolving demands on CFOs. \nEvery new position, he explained, comes with a steep learning curve for CFOs who want to be embraced not just as enablers, but as equal partners in strategic decision-making, especially when transitioning into new industries that come with their own specific vocabularies and concepts.\nThe digital transformation sweeping across industries has significantly impacted the finance function. For Tran, digital transformation is fundamentally about becoming data-driven. It starts with collecting raw data and evolves through stages of reporting, analysis and ultimately, providing true decision support. The goal is to leverage data not just for operational efficiency but to forecast and navigate future challenges and opportunities.\n\u201cThe holy grail for digital transformation is to get to true decision support, where we\u2019re really providing data-driven optionality and information and choices; where we fully analyze the implications of the path that we select,\u201d Tran said, noting that \u201cmost companies don\u2019t get there \u2026 you have to bring institutional knowledge to bear, and that\u2019s where experience matters.\u201d\nFortunately for modern finance functions, AI and machine learning are proving to be pivotal in this transformation, providing tools for predictive analysis and operational automation. \nTran explained that while generative AI is relatively new, existing AI technologies have been integral to finance for some time. At CSG, he said, they are exploring how AI can enhance productivity and are integrating AI capabilities into their products to add value to customers.\nImportance of Executive Collaboration\nIn a rapidly evolving business landscape, Tran advocated for establishing a model where the finance team works as business partners rather than mere enablers. This partnership approach involves ideating and shaping strategy, not just supporting. \nAt CSG, Tran has fostered a culture where finance leaders are embedded within business units, acting as de facto CFOs of those divisions. This integration ensures that financial considerations are at the forefront of business decisions, backed by a robust, data-driven approach. \n\u201cThere\u2019s an obsession about utilizing data to help make the best decisions possible,\u201d Tran said, underscoring the critical role of data in modern finance.\nAnd for global businesses, risk management exists as a multifaceted challenge. From regulatory compliance across different countries to managing currency and interest rate risks, the CFO\u2019s role in mitigating these risks is vital. Tran stressed the importance of building a culture that is vigilant about risk, one that is proactive rather than reactive.\nThis vigilance extends to financial operations like accounts payable and receivable, where proactive management of working capital can significantly impact a company\u2019s cash flow and overall financial health. \nUltimately, the CFO\u2019s role is now more critical than ever. It demands a blend of financial acumen, strategic insight, and operational involvement, positioning the CFO as not just a guardian of the company\u2019s financial health but a pivotal player in shaping its future.\nFor all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.\nThe post CSG CFO: \u2018True Decision Support\u2019 Is Digital Transformation\u2019s Holy Grail appeared first on PYMNTS.com.", "date_published": "2024-07-29T08:30:48-04:00", "date_modified": "2024-07-28T22:01:49-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/CSG-CFO-TV-overlay.jpg", "tags": [ "accounts payable", "accounts receivable", "B2B", "B2B Payments", "CFOs", "commercial payments", "CSG", "Day in the Life of a CFO", "digital transformation", "Hai Tran", "News", "PYMNTS News", "pymnts tv", "spend management", "treasury management", "video", "CFO" ] }, { "id": "https://www.pymnts.com/?p=1973633", "url": "https://www.pymnts.com/cfo/2024/4-ways-cfos-are-steering-around-challenges-and-ahead-of-competitors/", "title": "4 Ways CFOs Are Steering Around Challenges and Ahead of Competitors", "content_html": "For CFOs, the business itself is their biggest customer and most important client.
\nAnd given the increasingly dynamic operating landscape today\u2019s middle-market businesses are tasked with navigating, ensuring that their own firm is leading the charge relative to peers and competitors is top of mind for forward-thinking finance teams and treasury functions.
\nFortunately, and as top finance leaders have repeatedly told PYMNTS for the\u00a0series\u00a0\u201cA Day In The\u00a0Life of a CFO,\u201d\u00a0the chief financial officer role has never been more strategic than it is today. Those finance teams that embrace a focus on competitive positioning, cost management, growth, and digital transformation are increasingly finding themselves at the forefront of efforts to steer their companies toward success in an uncertain world.
\nMiddle-market businesses, defined as companies with annual revenues between $10 million and $1 billion, play a pivotal role in the global economy. They are often characterized by their nimbleness, innovation and growth potential.
\nHowever, the operating landscape for these firms is becoming increasingly complex due to four key factors that encompass the rapid pace of technological advancement, changing regulatory requirements, the interconnectedness of the global economy and ongoing shifts in customer and end-user preferences and behavior.
\nAnd as the economic environment continues to evolve, competitive positioning is emerging as not just a concern but a significant driver of uncertainty for CFOs.
\nRead more: Why There Are No Sacred Cows for Today\u2019s CFOs
\nData from the most recent Uncertainty Project report by PYMNTS Intelligence, \u201cMiddle-Market CFOs Tag Competitive Positioning Among Top Drivers of Uncertainty,\u201d sheds light on the priorities and concerns that are top of mind for CFOs, particularly those in the middle market.
\nIt finds that, with the specter of economic uncertainty looming large, these financial stewards are increasingly focused on maintaining and enhancing their companies\u2019 competitive positioning.
\nBusiness performance had 27% of CFOs worried in May, and key drivers for that worry include cash forecasting and cost control. Competitive position also\u00a0continues to concern\u00a025% of CFOs, with pricing a significant factor. This concern underscores the complex environment in which businesses operate, where staying ahead of competitors requires constant vigilance and adaptation \u2014 and it marks the third consecutive month in which competitive position has weighed heavily on CFOs\u2019 sense of certainty.
\n\u201cI feel immense\u00a0accountability\u00a0for how every team across our business performs,\u201d\u00a0Lauren Dillard, executive vice president and CFO at\u00a0LiveRamp, told PYMNTS. \u201cSmart and tight expense management is key, as is partnering with the business to really understand those different expense levers and ROI data so that we can quickly move the knobs and dials if we don\u2019t see revenue materialized in the way we planned.\u201d
\nAs the year has gone on, CFO\u2019s concerns around their organization\u2019s supply chain integrity have fallen, the data shows, while the worries finance teams harbor around macroeconomic conditions and business performance have only grown between February and May 2024.
\nThat\u2019s in part because, as can happen over time, many CFOs ultimately are finding themselves facing mid-year troubles. Projected deals may fall through or get delayed, and cash forecasts can prove increasingly uncertain or inaccurate. The PYMNTS Intelligence research highlights other key areas of focus for CFOs, including the management of operating costs and the pursuit of organic growth through market expansion and product development. These priorities reflect a comprehensive approach to navigating the uncertain economic landscape, balancing the need for efficiency with the imperative for growth.
\nSee also: CFOs\u2019 Top 4 Concerns Reveal Importance of Controlling What\u2019s Controllable
\n\u201cThe finance function is one of the roles that sits with a 360-degree view of everything and is the one, at the end of the day, that\u2019s\u00a0charged with the performance\u00a0of the business,\u201d\u00a0Scott Casey, CFO at\u00a0Robin AI, told PYMNTS.
\nStill, just 25% of CFOs reported using analytics to forecast trends and gain insights \u2014 a significant drop over the past several months, and one that hints at an emerging emphasis on process automation, new workflows, and dedicating human resources effectively mitigate uncertainty.
\n\u201cChief value officer, or CVO, might be a more suitable title in the future for this position where you\u2019re looking at not just financial analysis, reporting and controls, but value creation and how to use those resources to\u00a0drive value creation\u00a0for the company,\u201d\u00a0LiquidX\u00a0CFO\u00a0Abhishek Khandelwal\u00a0told PYMNTS. \u201cIt\u2019s critically important to strike a balance in being a financial steward of the company and at the same time supporting the innovation that can drive future growth.\u201d
\nOne of the most telling findings of the study is the growing emphasis on technology and digital transformation by CFOs. Data shows that middle-market CFOs with more thoroughly automated financial operations are almost eight-times more likely to report high certainty than those with less automated operations. Specifically, 80% of middle-market companies with more than half of their financial operations automated report high levels of certainty.
\nAs\u00a0Bloomreach\u00a0CFO\u00a0Ninos Sarkis\u00a0told PYMNTS in an\u00a0interview\u00a0posted in November: \u201cYou can\u2019t control the geopolitical tensions, but what you can control is making your\u00a0business\u00a0stronger and more resilient during these times so that you come out the back of it a stronger company. \u2026 There\u2019s a lot of relatively low-hanging fruit to make a business more efficient, more scalable and more automated.\u201d
\nThe post 4 Ways CFOs Are Steering Around Challenges and Ahead of Competitors appeared first on PYMNTS.com.
\n", "content_text": "For CFOs, the business itself is their biggest customer and most important client.\nAnd given the increasingly dynamic operating landscape today\u2019s middle-market businesses are tasked with navigating, ensuring that their own firm is leading the charge relative to peers and competitors is top of mind for forward-thinking finance teams and treasury functions.\nFortunately, and as top finance leaders have repeatedly told PYMNTS for the\u00a0series\u00a0\u201cA Day In The\u00a0Life of a CFO,\u201d\u00a0the chief financial officer role has never been more strategic than it is today. Those finance teams that embrace a focus on competitive positioning, cost management, growth, and digital transformation are increasingly finding themselves at the forefront of efforts to steer their companies toward success in an uncertain world.\nMiddle-market businesses, defined as companies with annual revenues between $10 million and $1 billion, play a pivotal role in the global economy. They are often characterized by their nimbleness, innovation and growth potential.\nHowever, the operating landscape for these firms is becoming increasingly complex due to four key factors that encompass the rapid pace of technological advancement, changing regulatory requirements, the interconnectedness of the global economy and ongoing shifts in customer and end-user preferences and behavior.\nAnd as the economic environment continues to evolve, competitive positioning is emerging as not just a concern but a significant driver of uncertainty for CFOs.\nRead more: Why There Are No Sacred Cows for Today\u2019s CFOs\nThe Increasing Costs of Uncertainty\nData from the most recent Uncertainty Project report by PYMNTS Intelligence, \u201cMiddle-Market CFOs Tag Competitive Positioning Among Top Drivers of Uncertainty,\u201d sheds light on the priorities and concerns that are top of mind for CFOs, particularly those in the middle market.\nIt finds that, with the specter of economic uncertainty looming large, these financial stewards are increasingly focused on maintaining and enhancing their companies\u2019 competitive positioning.\nBusiness performance had 27% of CFOs worried in May, and key drivers for that worry include cash forecasting and cost control. Competitive position also\u00a0continues to concern\u00a025% of CFOs, with pricing a significant factor. This concern underscores the complex environment in which businesses operate, where staying ahead of competitors requires constant vigilance and adaptation \u2014 and it marks the third consecutive month in which competitive position has weighed heavily on CFOs\u2019 sense of certainty.\n\u201cI feel immense\u00a0accountability\u00a0for how every team across our business performs,\u201d\u00a0Lauren Dillard, executive vice president and CFO at\u00a0LiveRamp, told PYMNTS. \u201cSmart and tight expense management is key, as is partnering with the business to really understand those different expense levers and ROI data so that we can quickly move the knobs and dials if we don\u2019t see revenue materialized in the way we planned.\u201d\nAs the year has gone on, CFO\u2019s concerns around their organization\u2019s supply chain integrity have fallen, the data shows, while the worries finance teams harbor around macroeconomic conditions and business performance have only grown between February and May 2024.\nThat\u2019s in part because, as can happen over time, many CFOs ultimately are finding themselves facing mid-year troubles. Projected deals may fall through or get delayed, and cash forecasts can prove increasingly uncertain or inaccurate. The PYMNTS Intelligence research highlights other key areas of focus for CFOs, including the management of operating costs and the pursuit of organic growth through market expansion and product development. These priorities reflect a comprehensive approach to navigating the uncertain economic landscape, balancing the need for efficiency with the imperative for growth.\nSee also: CFOs\u2019 Top 4 Concerns Reveal Importance of Controlling What\u2019s Controllable\nDriving Growth Through Innovation and Strategy\n\u201cThe finance function is one of the roles that sits with a 360-degree view of everything and is the one, at the end of the day, that\u2019s\u00a0charged with the performance\u00a0of the business,\u201d\u00a0Scott Casey, CFO at\u00a0Robin AI, told PYMNTS.\nStill, just 25% of CFOs reported using analytics to forecast trends and gain insights \u2014 a significant drop over the past several months, and one that hints at an emerging emphasis on process automation, new workflows, and dedicating human resources effectively mitigate uncertainty.\n\u201cChief value officer, or CVO, might be a more suitable title in the future for this position where you\u2019re looking at not just financial analysis, reporting and controls, but value creation and how to use those resources to\u00a0drive value creation\u00a0for the company,\u201d\u00a0LiquidX\u00a0CFO\u00a0Abhishek Khandelwal\u00a0told PYMNTS. \u201cIt\u2019s critically important to strike a balance in being a financial steward of the company and at the same time supporting the innovation that can drive future growth.\u201d\nOne of the most telling findings of the study is the growing emphasis on technology and digital transformation by CFOs. Data shows that middle-market CFOs with more thoroughly automated financial operations are almost eight-times more likely to report high certainty than those with less automated operations. Specifically, 80% of middle-market companies with more than half of their financial operations automated report high levels of certainty.\nAs\u00a0Bloomreach\u00a0CFO\u00a0Ninos Sarkis\u00a0told PYMNTS in an\u00a0interview\u00a0posted in November: \u201cYou can\u2019t control the geopolitical tensions, but what you can control is making your\u00a0business\u00a0stronger and more resilient during these times so that you come out the back of it a stronger company. \u2026 There\u2019s a lot of relatively low-hanging fruit to make a business more efficient, more scalable and more automated.\u201d\nThe post 4 Ways CFOs Are Steering Around Challenges and Ahead of Competitors appeared first on PYMNTS.com.", "date_published": "2024-07-09T16:57:20-04:00", "date_modified": "2024-07-14T21:10:30-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/09/CFO.jpg", "tags": [ "B2B", "B2B Payments", "Business Finance", "CFO", "CFOs", "Chief Financial Officer", "commercial payments", "data analytics", "digital transformation", "economy", "middle-market businesses", "News", "PYMNTS Intelligence", "PYMNTS News", "Technology", "Uncertainty Project" ] }, { "id": "https://www.pymnts.com/?p=1965891", "url": "https://www.pymnts.com/cfo/2024/how-cfos-are-managing-regulatory-anxiety/", "title": "How CFOs Are Managing the Year of Regulatory Anxiety", "content_html": "When it comes to compliance, businesses need to grow up \u2014 quickly \u2014 to compete.
\nFrom Apple\u2019s ongoing troubles in the European Union to former FinTech-darling Synapse\u2019s bankruptcy in the United States, the contemporary to-the-letter regulatory and compliance landscape is driving corporate costs up for businesses both large and small. It\u2019s a situation that frequently results in a downstream impact on their own partners and customers.
\nIn today\u2019s volatile business environment, insights from PYMNTS\u2019 A Day in the Life of a CFO series show that risk management is becoming a critical aspect of the chief financial officer\u2019s role.
\nHistorically regarded as the custodians of financial stewardship, finance leaders are now seeing their function evolve into one that is pivotal in navigating the complexities of compliance and risk management.
\nFrom monitoring macroeconomic trends and surging geopolitical risk to the imperative to safeguard organizational integrity and adhere to corporate governance and regulatory standards, the expectation for modern CFOs to act as strategic partners to the CEO and the board, providing insights that guide corporate strategy, has never been higher.
\nThis transformation is partly fueled by the growing recognition that financial performance is inextricably linked to risk management and compliance, and it has been given a shot in the arm by the ongoing globalization of the connected business landscape, where companies must balance a host of different global regulations that have fundamentally altered the governance landscape.
\nRead also: Will Regulators\u2019 Public Shaming Blunt Innovation?
\nCompliance and risk management are intertwined disciplines that collectively contribute to an organization\u2019s stability and success. Compliance involves adhering to laws, regulations and internal policies, while risk management focuses on identifying, assessing and mitigating risks that could impede organizational objectives.
\n\u201c[Y]ou have to think about managing the risk of the organization,\u201d CSI CFO Ken Gayron told PYMNTS this month.
\n\u201cThe CFO and the CEO are really the two positions that see the entire business,\u201d he added.
\nCFOs play a role in integrating these functions into the overall governance strategy. They are responsible for establishing and maintaining an effective internal control environment that promotes compliance and mitigates risks. This involves designing policies and procedures, conducting risk assessments, and ensuring that the organization has the necessary resources to address compliance and risk-related challenges.
\n\u201cWe need to make sure we are balancing innovation with structure and reliability,\u201d Pushpay CFO Burt Chao told PYMNTS this month, adding that while \u201cold school CFOs were the \u2018no police\u2019 \u2026 flexibility in today\u2019s environment requires not only proactively generating opportunity but also managing risk.\u201d
\nSee also: Thredd CEO Counts on Regulators to Address Vulnerabilities of Banking as a Service
\nWhile the prevailing wisdom across the payments and financial services marketplace, particularly for startups and younger firms, used to be that growth was the single most important criterion, now, companies need to scale smartly rather than rapidly.
\n\u201cIt\u2019s time to make compliance a force for growth,\u201d Sovos CEO Kevin Akeroyd told PYMNTS in April, noting that among businesses there\u2019s both a palpable shift toward conservatism and risk mitigation.
\nEffective compliance and risk management extend beyond policies and procedures; they require a culture of compliance embedded within the organization. CFOs, as leaders, must champion this culture, promoting ethical behavior and accountability at all levels.
\n\u201cCFOs are always playing offense, but you\u2019re also playing defense,\u201d DailyPay CFO Ken Brause told PYMNTS in May. \u201cAnd that plays into risk management.\u201d
\nIncreasingly, technology has had a dual impact on compliance and risk management. On one hand, technological advancements provide CFOs with sophisticated tools to enhance governance. For instance, data analytics and artificial intelligence can help identify potential compliance issues and assess risks more accurately. On the other hand, technology introduces new risks, such as cybersecurity threats and data breaches, that CFOs must manage.
\n\u201cTechnology, especially AI, has accelerated the success of finance teams by providing real-time access to data and insights,\u201d Brian Unruh, CFO at global AI company ABBYY, told PYMNTS this month. \u201cThis allows us to proactively address issues before they become significant problems, rather than just reporting on them after the fact.\u201d
\nUltimately, the complexity of modern compliance and risk management demands collaboration across various functions within the organization. CFOs must work closely with legal, IT, operations and other departments to ensure a cohesive approach to governance. This interdisciplinary collaboration is essential for identifying risks, implementing controls and responding to compliance challenges effectively.
\nThe post How CFOs Are Managing the Year of Regulatory Anxiety appeared first on PYMNTS.com.
\n", "content_text": "When it comes to compliance, businesses need to grow up \u2014 quickly \u2014 to compete.\nFrom Apple\u2019s ongoing troubles in the European Union to former FinTech-darling Synapse\u2019s bankruptcy in the United States, the contemporary to-the-letter regulatory and compliance landscape is driving corporate costs up for businesses both large and small. It\u2019s a situation that frequently results in a downstream impact on their own partners and customers.\nIn today\u2019s volatile business environment, insights from PYMNTS\u2019 A Day in the Life of a CFO series show that risk management is becoming a critical aspect of the chief financial officer\u2019s role.\nHistorically regarded as the custodians of financial stewardship, finance leaders are now seeing their function evolve into one that is pivotal in navigating the complexities of compliance and risk management.\nFrom monitoring macroeconomic trends and surging geopolitical risk to the imperative to safeguard organizational integrity and adhere to corporate governance and regulatory standards, the expectation for modern CFOs to act as strategic partners to the CEO and the board, providing insights that guide corporate strategy, has never been higher.\nThis transformation is partly fueled by the growing recognition that financial performance is inextricably linked to risk management and compliance, and it has been given a shot in the arm by the ongoing globalization of the connected business landscape, where companies must balance a host of different global regulations that have fundamentally altered the governance landscape.\nRead also: Will Regulators\u2019 Public Shaming Blunt Innovation?\nThe Interplay Between Compliance and Risk Management\nCompliance and risk management are intertwined disciplines that collectively contribute to an organization\u2019s stability and success. Compliance involves adhering to laws, regulations and internal policies, while risk management focuses on identifying, assessing and mitigating risks that could impede organizational objectives.\n\u201c[Y]ou have to think about managing the risk of the organization,\u201d CSI CFO Ken Gayron told PYMNTS this month.\n\u201cThe CFO and the CEO are really the two positions that see the entire business,\u201d he added.\nCFOs play a role in integrating these functions into the overall governance strategy. They are responsible for establishing and maintaining an effective internal control environment that promotes compliance and mitigates risks. This involves designing policies and procedures, conducting risk assessments, and ensuring that the organization has the necessary resources to address compliance and risk-related challenges.\n\u201cWe need to make sure we are balancing innovation with structure and reliability,\u201d Pushpay CFO Burt Chao told PYMNTS this month, adding that while \u201cold school CFOs were the \u2018no police\u2019 \u2026 flexibility in today\u2019s environment requires not only proactively generating opportunity but also managing risk.\u201d\nSee also: Thredd CEO Counts on Regulators to Address Vulnerabilities of Banking as a Service\nCompliance Can Be Both Growth Driver and Corporate Strategy\nWhile the prevailing wisdom across the payments and financial services marketplace, particularly for startups and younger firms, used to be that growth was the single most important criterion, now, companies need to scale smartly rather than rapidly.\n\u201cIt\u2019s time to make compliance a force for growth,\u201d Sovos CEO Kevin Akeroyd told PYMNTS in April, noting that among businesses there\u2019s both a palpable shift toward conservatism and risk mitigation.\nEffective compliance and risk management extend beyond policies and procedures; they require a culture of compliance embedded within the organization. CFOs, as leaders, must champion this culture, promoting ethical behavior and accountability at all levels.\n\u201cCFOs are always playing offense, but you\u2019re also playing defense,\u201d DailyPay CFO Ken Brause told PYMNTS in May. \u201cAnd that plays into risk management.\u201d\nIncreasingly, technology has had a dual impact on compliance and risk management. On one hand, technological advancements provide CFOs with sophisticated tools to enhance governance. For instance, data analytics and artificial intelligence can help identify potential compliance issues and assess risks more accurately. On the other hand, technology introduces new risks, such as cybersecurity threats and data breaches, that CFOs must manage.\n\u201cTechnology, especially AI, has accelerated the success of finance teams by providing real-time access to data and insights,\u201d Brian Unruh, CFO at global AI company ABBYY, told PYMNTS this month. \u201cThis allows us to proactively address issues before they become significant problems, rather than just reporting on them after the fact.\u201d\nUltimately, the complexity of modern compliance and risk management demands collaboration across various functions within the organization. CFOs must work closely with legal, IT, operations and other departments to ensure a cohesive approach to governance. This interdisciplinary collaboration is essential for identifying risks, implementing controls and responding to compliance challenges effectively.\nThe post How CFOs Are Managing the Year of Regulatory Anxiety appeared first on PYMNTS.com.", "date_published": "2024-06-24T16:53:12-04:00", "date_modified": "2024-06-25T22:51:57-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/09/CFO-modernization.jpg", "tags": [ "B2B", "B2B Payments", "CFO", "commercial payments", "compliance", "News", "PYMNTS News", "regulations", "risk management" ] }, { "id": "https://www.pymnts.com/?p=1964762", "url": "https://www.pymnts.com/cfo/2024/csi-cfo-thought-diversity-strategic-allocation-are-key-success-enablers/", "title": "CSI CFO: Thought Diversity, Strategic Allocation Are Key Success Enablers", "content_html": "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\u2019s because, given the realities of today\u2019s shifting macro backdrop, CFOs are more and more turned to as the standard bearer of financial truth within their organizations.
\n\u201cThe CFO and the CEO are really the two positions that see the entire business,\u201d Ken Gayron, CFO at\u00a0CSI, told PYMNTS.
\nHe 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.
\n\u201cBeing 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,\u201d Gayron said.
\nIn today\u2019s 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.
\nThis data-driven approach allows CFOs to allocate capital and resources more effectively, focusing on opportunities where their companies have a competitive edge, said Gayron.
\nModern CFOs are expected to be strategic partners, providing invaluable insights and guidance to shape the long-term direction of their organizations \u2014 an emerging reality that makes cross-departmental communication and collaboration even more paramount than they were previously.
\n\u201cWe\u2019re constantly communicating as senior leaders on a daily basis,\u201d Gayron noted, highlighting that digital innovations have made socializing key financial data and information increasingly easy and seamless.
\nThat\u2019s because the finance toolkit has undergone a remarkable evolution in recent years, with real-time dashboards and business intelligence (BI) tools replacing traditional processes.
\n\u201cIt used to be all based in Excel, with people inputting data and sending spreadsheets via email,\u201d Gayron said. \u201cNow, it\u2019s 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.
\n\u201cWe have to build scale in the organization, so technology isn\u2019t just confined to the finance office,\u201d he added. \u201cIt\u2019s 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.\u201d
\nIt\u2019s 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\u2019s overarching strategy and growth objectives while fostering a growth mindset and promoting inclusivity and diversity.
\n\u201cHaving a diverse team is key because it provides different perspectives, and that leads to better decision-making,\u201d he said. \u201cWe have a diverse, global customer base, and we want to ensure we have a diverse mindset as we solve customer problems.\u201d
\nAfter all, in the rapidly changing operational landscape, understanding and anticipating customer needs can be the difference between business growth or stagnation.
\nAt 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.
\n\u201cWhen rates are high, it\u2019s a really important process because you\u2019re managing the cash flow of the company, the working capital, the balance sheet,\u201d he said. \u201cYou\u2019re making decisions on payments, helping to get past dues collected, looking at covenant compliance and hedging. It\u2019s a strategic position because you have to think about managing the risk of the organization in terms of the balance sheet.\u201d
\nLooking 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.
\nFor all PYMNTS B2B coverage, subscribe to the daily\u00a0B2B Newsletter.
\nThe post CSI CFO: Thought Diversity, Strategic Allocation Are Key Success Enablers appeared first on PYMNTS.com.
\n", "content_text": "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\u2019s because, given the realities of today\u2019s shifting macro backdrop, CFOs are more and more turned to as the standard bearer of financial truth within their organizations.\n\u201cThe CFO and the CEO are really the two positions that see the entire business,\u201d Ken Gayron, CFO at\u00a0CSI, told PYMNTS.\nHe 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.\n\u201cBeing 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,\u201d Gayron said.\nIn today\u2019s 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.\nThis data-driven approach allows CFOs to allocate capital and resources more effectively, focusing on opportunities where their companies have a competitive edge, said Gayron.\nCross-Departmental Collaboration a Key to Unlocking Growth\nModern CFOs are expected to be strategic partners, providing invaluable insights and guidance to shape the long-term direction of their organizations \u2014 an emerging reality that makes cross-departmental communication and collaboration even more paramount than they were previously.\n\u201cWe\u2019re constantly communicating as senior leaders on a daily basis,\u201d Gayron noted, highlighting that digital innovations have made socializing key financial data and information increasingly easy and seamless.\nThat\u2019s because the finance toolkit has undergone a remarkable evolution in recent years, with real-time dashboards and business intelligence (BI) tools replacing traditional processes.\n\u201cIt used to be all based in Excel, with people inputting data and sending spreadsheets via email,\u201d Gayron said. \u201cNow, it\u2019s 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.\n\u201cWe have to build scale in the organization, so technology isn\u2019t just confined to the finance office,\u201d he added. \u201cIt\u2019s 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.\u201d\nThe Evolving Roles of Treasury Management and Finance Talent\nIt\u2019s 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\u2019s overarching strategy and growth objectives while fostering a growth mindset and promoting inclusivity and diversity.\n\u201cHaving a diverse team is key because it provides different perspectives, and that leads to better decision-making,\u201d he said. \u201cWe have a diverse, global customer base, and we want to ensure we have a diverse mindset as we solve customer problems.\u201d\nAfter all, in the rapidly changing operational landscape, understanding and anticipating customer needs can be the difference between business growth or stagnation.\nAt 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.\n\u201cWhen rates are high, it\u2019s a really important process because you\u2019re managing the cash flow of the company, the working capital, the balance sheet,\u201d he said. \u201cYou\u2019re making decisions on payments, helping to get past dues collected, looking at covenant compliance and hedging. It\u2019s a strategic position because you have to think about managing the risk of the organization in terms of the balance sheet.\u201d\nLooking 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.\nFor all PYMNTS B2B coverage, subscribe to the daily\u00a0B2B Newsletter.\nThe post CSI CFO: Thought Diversity, Strategic Allocation Are Key Success Enablers appeared first on PYMNTS.com.", "date_published": "2024-06-24T08:00:38-04:00", "date_modified": "2024-06-23T22:01:45-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/CSI-CFO-success.png", "tags": [ "B2B", "B2B Payments", "Business Finance", "CFO", "Chief Financial Officer", "commercial payments", "CSI", "Day in the Life of a CFO", "Ken Gayron", "News", "PYMNTS News", "pymnts tv", "Technology", "treasury management", "video" ] }, { "id": "https://www.pymnts.com/?p=1963399", "url": "https://www.pymnts.com/cfo/2024/xifin-cfo-on-planning-your-work-then-working-the-plan/", "title": "XiFin CFO on Planning Your Work, Then Working the Plan", "content_html": "Over the past 10 years, more change has occurred than over the previous 50.
\nTechnological innovation has transformed business functions, operating models, roles, responsibilities, and nearly every element of the enterprise marketplace.
\n\u201cDifferent industries have seen transition happen at different paces, but 20 years ago, the CFO was the senior accountant at the company \u2026 but now, the majority of companies need their CFO to be a strategic leader and trusted adviser, a crucial player in shaping the direction of the organization,\u201d Erik Sallee, CFO at\u00a0XiFin, told PYMNTS for the series \u201cA Day In The Life of a CFO.\u201d
\nThis shift is driven by the increasing complexity of the business environment, advancements in technology, and the need for companies to be more agile and responsive to market changes.
\n\u201cYou still need to be a technical expert in accounting and finance, but you also need to lead large organizations and explain finance to nonfinancial professionals in a way that makes sense,\u201d Sallee explained.
\nHe emphasized the growing importance of transforming financial data into actionable insights that can guide the strategic direction of the business. This involves breaking down complex financial information into key performance indicators (KPIs) that align with operational metrics.
\n\u201cWithout a finance function that can do that, the business is likely to fail,\u201d Sallee said. \u201cThe hardest part is not coming up with exciting ideas but financing and executing them effectively.\u201d
\nWhile still important, the historical, fundamental tasks of the finance function around accounting and compliance are now table stakes for the role.
\nIncreasingly, as CFOs are tasked with understanding the business and providing guidance, Sallee said that by focusing on specific metrics and building consensus around the need to prioritize certain initiatives, the finance function can help the executive team make difficult decisions about resource allocation. This strategic focus enables companies to move forward with clarity and cohesion.
\n\u201cA strong finance leader and finance function can help the business understand what it takes to plan your work, and then work your plan,\u201d Sallee said.
\nAnd in today\u2019s volatile business environment, risk management is a critical aspect of the CFO\u2019s role. Sallee highlighted three key risks that he is monitoring: cybersecurity, market fluctuations, and talent acquisition and retention.
\n\u201cEveryone has been dealing with cybersecurity for a long time,\u201d he said, noting that, \u201cThere\u2019s no way around it other than blocking and tackling, doing the right thing every day keeping all your systems up to date, making sure you\u2019re working with good vendors, and investing in it. It\u2019s a cost-avoidance type of investment, but it\u2019s one you have to understand and you can\u2019t short shrift it.\u201d
\nMarket fluctuations, particularly interest rates, also pose significant risks. \u201cWe work with our financial partners to insulate ourselves from macro trends and ensure that our business performs on its own merits,\u201d Sallee said.
\nThe most significant risk, however, is related to people. \u201cFinding and retaining high-quality talent has never been more important or difficult,\u201d he said. \u201cInvesting in our employees through company culture, integrity and leadership is crucial for long-term success.\u201d
\nThe rise of digital technologies has profoundly impacted the finance function. Sallee discussed how XiFin leverages big data and artificial intelligence (AI) to optimize business processes and drive better decision-making. He also noted the importance of understanding the technological landscape and integrating new solutions when it makes sense for the business and its customers.
\n\u201cThe CFO needs to be an integrated part of the overall operations to ensure that technological advancements are leveraged effectively,\u201d Sallee said.
\nEffective communication is another critical skill for modern CFOs, who are frequently turned to as a source of financial truth within the business. Sallee emphasized the importance of translating financial performance into operational terms that are easily understood by nonfinancial professionals.
\n\u201cModern data processing capabilities make it easier to tie operational metrics to financial performance, turning them into leading indicators rather than lagging ones,\u201d he explained.
\nThe role of the CFO has undeniably evolved, and those finance functions that stay ahead of the transformation have embraced a blend of technical expertise, strategic thinking, leadership, and effective communication. As Sallee illustrated, modern CFOs must navigate complex risks, leverage digital solutions, build consensus, and invest in their teams to drive long-term success.
\nAs the business landscape continues to change, the CFO\u2019s ability to adapt and lead will remain crucial in shaping the future of their organizations, he explained.
\nFor all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
\nThe post XiFin CFO on Planning Your Work, Then Working the Plan appeared first on PYMNTS.com.
\n", "content_text": "Over the past 10 years, more change has occurred than over the previous 50. \nTechnological innovation has transformed business functions, operating models, roles, responsibilities, and nearly every element of the enterprise marketplace. \n\u201cDifferent industries have seen transition happen at different paces, but 20 years ago, the CFO was the senior accountant at the company \u2026 but now, the majority of companies need their CFO to be a strategic leader and trusted adviser, a crucial player in shaping the direction of the organization,\u201d Erik Sallee, CFO at\u00a0XiFin, told PYMNTS for the series \u201cA Day In The Life of a CFO.\u201d\nThis shift is driven by the increasing complexity of the business environment, advancements in technology, and the need for companies to be more agile and responsive to market changes.\n\u201cYou still need to be a technical expert in accounting and finance, but you also need to lead large organizations and explain finance to nonfinancial professionals in a way that makes sense,\u201d Sallee explained. \nHe emphasized the growing importance of transforming financial data into actionable insights that can guide the strategic direction of the business. This involves breaking down complex financial information into key performance indicators (KPIs) that align with operational metrics. \n\u201cWithout a finance function that can do that, the business is likely to fail,\u201d Sallee said. \u201cThe hardest part is not coming up with exciting ideas but financing and executing them effectively.\u201d\nFrom Accountant to Strategist\nWhile still important, the historical, fundamental tasks of the finance function around accounting and compliance are now table stakes for the role. \nIncreasingly, as CFOs are tasked with understanding the business and providing guidance, Sallee said that by focusing on specific metrics and building consensus around the need to prioritize certain initiatives, the finance function can help the executive team make difficult decisions about resource allocation. This strategic focus enables companies to move forward with clarity and cohesion.\n\u201cA strong finance leader and finance function can help the business understand what it takes to plan your work, and then work your plan,\u201d Sallee said. \nAnd in today\u2019s volatile business environment, risk management is a critical aspect of the CFO\u2019s role. Sallee highlighted three key risks that he is monitoring: cybersecurity, market fluctuations, and talent acquisition and retention.\n\u201cEveryone has been dealing with cybersecurity for a long time,\u201d he said, noting that, \u201cThere\u2019s no way around it other than blocking and tackling, doing the right thing every day keeping all your systems up to date, making sure you\u2019re working with good vendors, and investing in it. It\u2019s a cost-avoidance type of investment, but it\u2019s one you have to understand and you can\u2019t short shrift it.\u201d\nMarket fluctuations, particularly interest rates, also pose significant risks. \u201cWe work with our financial partners to insulate ourselves from macro trends and ensure that our business performs on its own merits,\u201d Sallee said.\nThe most significant risk, however, is related to people. \u201cFinding and retaining high-quality talent has never been more important or difficult,\u201d he said. \u201cInvesting in our employees through company culture, integrity and leadership is crucial for long-term success.\u201d\nDigital Transformation Will Define Finance Function\nThe rise of digital technologies has profoundly impacted the finance function. Sallee discussed how XiFin leverages big data and artificial intelligence (AI) to optimize business processes and drive better decision-making. He also noted the importance of understanding the technological landscape and integrating new solutions when it makes sense for the business and its customers. \n\u201cThe CFO needs to be an integrated part of the overall operations to ensure that technological advancements are leveraged effectively,\u201d Sallee said.\nEffective communication is another critical skill for modern CFOs, who are frequently turned to as a source of financial truth within the business. Sallee emphasized the importance of translating financial performance into operational terms that are easily understood by nonfinancial professionals. \n\u201cModern data processing capabilities make it easier to tie operational metrics to financial performance, turning them into leading indicators rather than lagging ones,\u201d he explained.\nThe role of the CFO has undeniably evolved, and those finance functions that stay ahead of the transformation have embraced a blend of technical expertise, strategic thinking, leadership, and effective communication. As Sallee illustrated, modern CFOs must navigate complex risks, leverage digital solutions, build consensus, and invest in their teams to drive long-term success. \nAs the business landscape continues to change, the CFO\u2019s ability to adapt and lead will remain crucial in shaping the future of their organizations, he explained. \nFor all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.\nThe post XiFin CFO on Planning Your Work, Then Working the Plan appeared first on PYMNTS.com.", "date_published": "2024-06-20T07:00:00-04:00", "date_modified": "2024-06-18T22:22:32-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/Erik-Sallee-Cfo-At-XiFin.png", "tags": [ "B2B", "B2B Payments", "CFO", "commercial payments", "data analysis", "Day in the Life of a CFO", "digital transformation", "Erik Sallee", "finance function", "key performance indicators", "KPIs", "News", "PYMNTS News", "pymnts tv", "video", "XiFin" ] }, { "id": "https://www.pymnts.com/?p=1958456", "url": "https://www.pymnts.com/cfo/2024/economic-uncertainties-move-cfos-from-documenters-to-ai-powered-decision-makers/", "title": "Economic Uncertainties Move CFOs From Documenters to AI-Powered Decision-Makers", "content_html": "The modern chief financial officer looks a little more modern every day.
\nHaving emerged almost fully from the back office, finance functions and their CFO leaders are increasingly turned to as a single source of company-wide truth amid the unpredictable realities of today\u2019s dynamic and unrelenting macro environment.
\n\u201cThe CFO role has evolved from being a historian, looking at and delivering reports that are dated, to becoming a strategic partner in decision-making and not just documenting that decision-making,\u201d Brian Unruh, CFO at\u00a0global AI company\u00a0ABBYY, told PYMNTS for the series \u201cA Day In The Life of a CFO.\u201d
\nThis evolution has been driven by advancements in technology, changing market dynamics, and an increasing need for sustainable growth.
\n\u201cThe finance department exists to fuel decision frameworks,\u201d said Unruh, noting that the \u201ctimely, accurate, and multidimensional data\u201d finance teams provide daily to the rest of the business is ultimately what helps define and accelerate internal growth drivers.
\nAfter all, financial planning and analysis (FP&A) involves setting a strategic path for the year and continuously realigning resources and processes in response to new market dynamics \u2014 something that remains at the heart of CFO responsibilities.
\nUnruh added that capital allocation is a close priority after FP&A, especially in growth companies where investment decisions are crucial.
\nToday’s CFOs are becoming increasingly integral to operational decision-making processes, providing timely and accurate data that fuels business strategy \u2014 and they are being helped in this evolution by technological advancements, particularly in artificial intelligence (AI) and data analytics. These tools enable CFOs to gain real-time insights into various aspects of the business, from customer health to operational efficiencies.
\n\u201cTechnology, especially AI, has accelerated the success of finance teams by providing real-time access to data and insights,\u201d Unruh said. \u201cThis allows us to proactively address issues before they become significant problems, rather than just reporting on them after the fact.\u201d
\nFor example, AI can analyze customer behavior to predict potential churn, allowing the finance team to take preemptive measures. Similarly, AI-driven analytics can identify bottlenecks in processes like sales enablement and cash collection, helping to streamline operations and improve cash flow.
\nA crucial aspect of leveraging technology effectively is the integration of data across the organization. \u201cIn the past, decision-making was very siloed, with different departments focusing on their specific metrics,\u201d said Unruh. \u201cNow, we use a more holistic approach, looking at the entire value chain to understand how different areas impact each other \u2026 Having a unified data structure ensures that everyone is speaking the same language and making decisions based on the same information.\u201d
\nThe shift toward integrated data and real-time insights has also improved communication and collaboration across the executive leadership team.
\n\u201cWith modern solutions providing increased visibility, it\u2019s easier for different departments to align on financial performance and strategy,\u201d Unruh said. This alignment is critical in dynamic environments where quick, informed decisions are essential \u2014 and the finance team\u2019s ability to provide deep-dive analyses also puts pressure on IT departments to support robust business intelligence strategies.
\nThe transforming role of the CFO is being marked by a shift from traditional financial stewardship to becoming a central figure in strategic decision-making. And the changing role of the CFO has also redefined what a high-performing finance team looks like.
\nThe ability to innovate and implement changes quickly is increasingly critical. Unruh emphasized the importance of nurturing talent that excels in identification, innovation and implementation. \u201cEveryone is good at one of these, some are good at two, and a few excel at all three. These are the people you need to nurture within your organization,\u201d he said.
\nLooking ahead, the role of the CFO will continue to evolve, with a greater emphasis on strategic vision and operational leadership. \u201cThe totality of accounting and finance is becoming more integrated into the strategic vision of the company,\u201d Unruh said. \u201cThe finance team is now expected to provide insights that not only reflect where we\u2019ve been but also predict where we\u2019re going.\u201d
\nTo stay ahead, CFOs must prioritize professional development and build strong relationships with leaders across product, technology, and sales functions. \u201cUnderstanding the frontline challenges and staying abreast of external trends are critical,\u201d Unruh said.
\nThe post Economic Uncertainties Move CFOs From Documenters to AI-Powered Decision-Makers appeared first on PYMNTS.com.
\n", "content_text": "The modern chief financial officer looks a little more modern every day.\nHaving emerged almost fully from the back office, finance functions and their CFO leaders are increasingly turned to as a single source of company-wide truth amid the unpredictable realities of today\u2019s dynamic and unrelenting macro environment.\n\u201cThe CFO role has evolved from being a historian, looking at and delivering reports that are dated, to becoming a strategic partner in decision-making and not just documenting that decision-making,\u201d Brian Unruh, CFO at\u00a0global AI company\u00a0ABBYY, told PYMNTS for the series \u201cA Day In The Life of a CFO.\u201d\nThis evolution has been driven by advancements in technology, changing market dynamics, and an increasing need for sustainable growth.\n\u201cThe finance department exists to fuel decision frameworks,\u201d said Unruh, noting that the \u201ctimely, accurate, and multidimensional data\u201d finance teams provide daily to the rest of the business is ultimately what helps define and accelerate internal growth drivers.\nAfter all, financial planning and analysis (FP&A) involves setting a strategic path for the year and continuously realigning resources and processes in response to new market dynamics \u2014 something that remains at the heart of CFO responsibilities.\nUnruh added that capital allocation is a close priority after FP&A, especially in growth companies where investment decisions are crucial.\nThe Transforming CFO Role: Innovations Driving Growth\nToday’s CFOs are becoming increasingly integral to operational decision-making processes, providing timely and accurate data that fuels business strategy \u2014 and they are being helped in this evolution by technological advancements, particularly in artificial intelligence (AI) and data analytics. These tools enable CFOs to gain real-time insights into various aspects of the business, from customer health to operational efficiencies.\n\u201cTechnology, especially AI, has accelerated the success of finance teams by providing real-time access to data and insights,\u201d Unruh said. \u201cThis allows us to proactively address issues before they become significant problems, rather than just reporting on them after the fact.\u201d\nFor example, AI can analyze customer behavior to predict potential churn, allowing the finance team to take preemptive measures. Similarly, AI-driven analytics can identify bottlenecks in processes like sales enablement and cash collection, helping to streamline operations and improve cash flow.\nA crucial aspect of leveraging technology effectively is the integration of data across the organization. \u201cIn the past, decision-making was very siloed, with different departments focusing on their specific metrics,\u201d said Unruh. \u201cNow, we use a more holistic approach, looking at the entire value chain to understand how different areas impact each other \u2026 Having a unified data structure ensures that everyone is speaking the same language and making decisions based on the same information.\u201d\nThe shift toward integrated data and real-time insights has also improved communication and collaboration across the executive leadership team.\n\u201cWith modern solutions providing increased visibility, it\u2019s easier for different departments to align on financial performance and strategy,\u201d Unruh said. This alignment is critical in dynamic environments where quick, informed decisions are essential \u2014 and the finance team\u2019s ability to provide deep-dive analyses also puts pressure on IT departments to support robust business intelligence strategies.\nThe Future of CFO Role Rests on New Skill Set for Finance Teams\nThe transforming role of the CFO is being marked by a shift from traditional financial stewardship to becoming a central figure in strategic decision-making. And the changing role of the CFO has also redefined what a high-performing finance team looks like.\nThe ability to innovate and implement changes quickly is increasingly critical. Unruh emphasized the importance of nurturing talent that excels in identification, innovation and implementation. \u201cEveryone is good at one of these, some are good at two, and a few excel at all three. These are the people you need to nurture within your organization,\u201d he said.\nLooking ahead, the role of the CFO will continue to evolve, with a greater emphasis on strategic vision and operational leadership. \u201cThe totality of accounting and finance is becoming more integrated into the strategic vision of the company,\u201d Unruh said. \u201cThe finance team is now expected to provide insights that not only reflect where we\u2019ve been but also predict where we\u2019re going.\u201d\nTo stay ahead, CFOs must prioritize professional development and build strong relationships with leaders across product, technology, and sales functions. \u201cUnderstanding the frontline challenges and staying abreast of external trends are critical,\u201d Unruh said.\nThe post Economic Uncertainties Move CFOs From Documenters to AI-Powered Decision-Makers appeared first on PYMNTS.com.", "date_published": "2024-06-13T04:00:05-04:00", "date_modified": "2024-06-16T22:42:04-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/CFOs-decision-makers.png", "tags": [ "ABBYY", "AI", "artificial intelligence", "B2B", "B2B Payments", "Brian Unruh", "Business Finance", "CFO", "Chief Financial Officer", "commercial payments", "data analytics", "Day in the Life of a CFO", "Featured News", "News", "PYMNTS News", "pymnts tv", "Technology", "video" ] }, { "id": "https://www.pymnts.com/?p=1956611", "url": "https://www.pymnts.com/cfo/2024/chief-architecture-officer-cfos-learn-to-design-business-growth/", "title": "Chief Architecture Officer? CFOs Learn to Design Business Growth", "content_html": "Today\u2019s chief financial officers have evolved from back-office accountants to financial architects.
\nAnd, given the dynamism of today\u2019s business landscape, the transformation of the finance function couldn\u2019t be happening at a better time for organizations.
\nNo longer confined to the back room, crunching numbers and ensuring compliance, today\u2019s CFO is a pivotal figure in shaping the strategic direction of an organization, explained Jerry Raphael, CFO\u00a0at\u00a0Hypori, for the PYMNTS series \u201cA Day In The Life of a CFO.\u201d
\n\u201cWhen it comes to the day in the life of a CFO, no two days are the same,\u201d Raphael said, noting that the increased focus on cash flow positivity and a clear path to profitability keeps finance teams on their toes, actively participating in and shaping the company’s strategic direction.
\nThis involves detailed planning, such as determining the number of salespeople to hire, allocating marketing budgets, and selecting appropriate channels to drive growth. By connecting granular details to overarching goals, CFOs can help ensure that financial strategies support the company\u2019s long-term vision.
\n“We help to lay out that plan from a very granular level and connect the dots up to the various goals from a growth perspective for a given year,\u201d said Raphael.
\nThis evolution reflects the broader trend of CFOs moving from financial gatekeepers to strategic partners within the executive leadership team.
\nOne significant change in recent years, driven by fundraising trends and public market pressures, is the increased push toward being more cash flow positive \u2014 particularly for younger companies and startups, as well as those operating in the software space. This shift necessitates a more conservative approach to investment and a greater emphasis on robust cash flow forecasting, ensuring that companies can sustain operations and pursue growth even in uncertain economic climates.
\n\u201cThere\u2019s a lot more benchmarking, and a lot more conversation around where we place our bets \u2026 it is crucial to understand the ins and outs of what\u2019s coming through the company\u2019s accounts,\u201d Raphael said, noting that “cash ends up being the lifeblood for any growing startup.\u201d
\nTechnological advancements have also significantly enhanced the finance function, enabling CFOs to make faster and more informed decisions. Raphael highlighted the role of integrations between systems and the application of artificial intelligence (AI) in solving complex problems quickly. These innovations, he said, help drive faster results and outcomes, providing the leadership team with timely information crucial for decision-making.
\nAnd the digitization of payments is another area where technology has made a substantial impact. Raphael observed that electronic payments have become the norm, largely accelerated by the COVID-19 pandemic. \u201cToday, maybe just five to eight percent of our payments come in through checks,\u201d he noted, underscoring the shift toward digital transactions.
\nThe ongoing maturation of B2B payments not only improves cash flow visibility but also speeds up financial processes, allowing for real-time assessment and decision-making.
\nA high-performing finance function is critical to navigating complex business environments and responding to black swan events, and Raphael emphasized the importance of hiring individuals who are not satisfied with the status quo and who continually seek to improve processes and solve tough problems.
\nThis mindset fosters resilience and innovative problem-solving, essential qualities for dealing with unexpected challenges like the pandemic or financial institution crises.
\nLooking ahead, Raphael envisions the CFO role continuing to evolve, with more crossover into other business areas. As mundane tasks are increasingly automated, CFOs will have more bandwidth to participate in strategic initiatives and take on responsibilities traditionally handled by CEOs. \u201cWhat we need is that architect with a vision of automating as much as they can within the finance function,\u201d he said, highlighting the need for CFOs to leverage technology to enhance efficiency and strategic involvement.
\nAnd as CFOs continue their onward evolution into strategic partners and business architects, their ability to drive innovation and build better businesses will be more critical than ever.
\nThe post Chief Architecture Officer? CFOs Learn to Design Business Growth appeared first on PYMNTS.com.
\n", "content_text": "Today\u2019s chief financial officers have evolved from back-office accountants to financial architects.\nAnd, given the dynamism of today\u2019s business landscape, the transformation of the finance function couldn\u2019t be happening at a better time for organizations.\nNo longer confined to the back room, crunching numbers and ensuring compliance, today\u2019s CFO is a pivotal figure in shaping the strategic direction of an organization, explained Jerry Raphael, CFO\u00a0at\u00a0Hypori, for the PYMNTS series \u201cA Day In The Life of a CFO.\u201d\n\u201cWhen it comes to the day in the life of a CFO, no two days are the same,\u201d Raphael said, noting that the increased focus on cash flow positivity and a clear path to profitability keeps finance teams on their toes, actively participating in and shaping the company’s strategic direction.\nThis involves detailed planning, such as determining the number of salespeople to hire, allocating marketing budgets, and selecting appropriate channels to drive growth. By connecting granular details to overarching goals, CFOs can help ensure that financial strategies support the company\u2019s long-term vision.\n“We help to lay out that plan from a very granular level and connect the dots up to the various goals from a growth perspective for a given year,\u201d said Raphael.\nThis evolution reflects the broader trend of CFOs moving from financial gatekeepers to strategic partners within the executive leadership team.\nEmbracing a Greater Emphasis on Cash Flow and Profitability\nOne significant change in recent years, driven by fundraising trends and public market pressures, is the increased push toward being more cash flow positive \u2014 particularly for younger companies and startups, as well as those operating in the software space. This shift necessitates a more conservative approach to investment and a greater emphasis on robust cash flow forecasting, ensuring that companies can sustain operations and pursue growth even in uncertain economic climates.\n\u201cThere\u2019s a lot more benchmarking, and a lot more conversation around where we place our bets \u2026 it is crucial to understand the ins and outs of what\u2019s coming through the company\u2019s accounts,\u201d Raphael said, noting that “cash ends up being the lifeblood for any growing startup.\u201d\nTechnological advancements have also significantly enhanced the finance function, enabling CFOs to make faster and more informed decisions. Raphael highlighted the role of integrations between systems and the application of artificial intelligence (AI) in solving complex problems quickly. These innovations, he said, help drive faster results and outcomes, providing the leadership team with timely information crucial for decision-making.\nAnd the digitization of payments is another area where technology has made a substantial impact. Raphael observed that electronic payments have become the norm, largely accelerated by the COVID-19 pandemic. \u201cToday, maybe just five to eight percent of our payments come in through checks,\u201d he noted, underscoring the shift toward digital transactions.\nThe ongoing maturation of B2B payments not only improves cash flow visibility but also speeds up financial processes, allowing for real-time assessment and decision-making.\nFuture Trends: CFOs as Business Architects\nA high-performing finance function is critical to navigating complex business environments and responding to black swan events, and Raphael emphasized the importance of hiring individuals who are not satisfied with the status quo and who continually seek to improve processes and solve tough problems.\nThis mindset fosters resilience and innovative problem-solving, essential qualities for dealing with unexpected challenges like the pandemic or financial institution crises.\nLooking ahead, Raphael envisions the CFO role continuing to evolve, with more crossover into other business areas. As mundane tasks are increasingly automated, CFOs will have more bandwidth to participate in strategic initiatives and take on responsibilities traditionally handled by CEOs. \u201cWhat we need is that architect with a vision of automating as much as they can within the finance function,\u201d he said, highlighting the need for CFOs to leverage technology to enhance efficiency and strategic involvement.\nAnd as CFOs continue their onward evolution into strategic partners and business architects, their ability to drive innovation and build better businesses will be more critical than ever.\nThe post Chief Architecture Officer? CFOs Learn to Design Business Growth appeared first on PYMNTS.com.", "date_published": "2024-06-10T04:01:32-04:00", "date_modified": "2024-06-10T22:49:25-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/CFOs-business-growth_e76938.png", "tags": [ "B2B", "B2B Payments", "cash flow", "CFO", "Chief Financial Officer", "commercial payments", "Day in the Life of a CFO", "digital transformation", "Digitization", "Featured News", "Hypori", "Jerry Raphael", "News", "PYMNTS News", "pymnts tv", "startups", "video" ] }, { "id": "https://www.pymnts.com/?p=1953879", "url": "https://www.pymnts.com/cfo/2024/how-cfos-act-as-force-multipliers-for-business-growth/", "title": "How CFOs Act as Force-Multipliers for Business Growth", "content_html": "Today\u2019s CFOs have their task cut out for them.
\nFrom managing and mitigating historic levels of uncertainty to striking the right return on investment (ROI) from the crowded field of digital innovations and solutions promising to transform work, all the way to monitoring macroeconomic trends and surging geopolitical risk \u2014 it has never been more crucial for chief financial officers (CFOs) to work to ensure they are making their businesses more resilient and better positioned to invest for growth.
\n\u201cBeing a strategic CFO means that you are in the business of the business. One of the measures of a finance team\u2019s success is feeling very much in the business as opposed to being a separate back office or mid-office function,\u201d Burt Chao, CFO at\u00a0Pushpay, told PYMNTS for the series \u201cA Day In The Life of a CFO.\u201d
\n\u201cA day in the life starts with what the business needs,\u201d Chao said.
\nAnd what businesses need more and more is resilience and flexibility, two operational elements that highlight the importance of business partner CFOs aligning financial strategy tightly with enterprise-wide objectives.
\nGiven the realities of today\u2019s backdrop, the worst thing for CFOs to do is to build a finance function that\u2019s isolated in a dark conference room setting financial targets and projections on an island, Chao said.
\n\u201cEfficiency only gets accomplished by having a two-way dialogue, a conversation with the rest of the business, as opposed to just a one-way set of rules and proclamations,\u201d he said, adding that while \u201cold school CFOs were the \u2018no police\u2019 \u2026 flexibility in today\u2019s environment requires not only proactively generating opportunity but also managing risk by understanding what mistakes a business can afford to make on the path to success.\u201d
\nAs the CFO role evolves from a traditional controllership function to a more strategic and forward-looking position at the leadership table, committed to driving the organization’s strategic goals, the on-paper realities of both finance teams and their internal workflows are transforming too.
\n\u201cInternally, the sharpest and most important tool you have are your own people,\u201d Chao said.
\nWithin the modern CFO’s expanded role as a business strategist, technology can serve as a force-multiplier but should not be treated as a panacea for all corporate ills and frictions.
\nData analytics, robotic process automation and even artificial intelligence (AI) all have roles to play within the finance function, though Chao advocated a measured approach.
\n\u201cWe\u2019re not trying to be leading-edge with unproven technologies that could undermine customer trust. The best route is focusing first on hiring the right people, defining resilient processes, then leveraging systems to scale \u2026 codifying what we have learned into more automated and more repeatable process,\u201d he said. \u201cWe need to make sure we are balancing innovation with structure and reliability.\u201d
\nKeeping a scorecard of expenses is an easy way for today\u2019s CFOs to fall behind the myriad and multifaceted operational risks they are continually faced with \u2014 rather, they need to embrace a go-forward strategy designed to drive better business outcomes.
\nEducating the broader organization on financial principles and ROI-driven decision-making is a critical aspect of successful CFOs. By ensuring and fostering a common language across different functions, finance teams can ensure that decisions are made with a clear understanding of their financial implications, Chao said.
\nLooking ahead, Chao\u2019s primary advice for aspiring CFOs is to focus on people. \u201cOrganizations are collections of people, and as a leader, your role is to support the entire organization,\u201d he said.\u00a0\u201cMy aspiration is for CFOs to be seen as business leaders first and functional experts second. We can\u2019t just be siloed financial tacticians, but drivers of educational vigor around ROI discipline for all.\u201d
\nBy prioritizing people, embracing technology thoughtfully and fostering open communication, CFOs can significantly contribute to their organizations\u2019 long-term success. As the discussion with Pushpay\u2019s Chao revealed, the modern CFO is not just a financial gatekeeper but a pivotal player in driving strategic growth and innovation.
\nThe post How CFOs Act as Force-Multipliers for Business Growth appeared first on PYMNTS.com.
\n", "content_text": "Today\u2019s CFOs have their task cut out for them.\nFrom managing and mitigating historic levels of uncertainty to striking the right return on investment (ROI) from the crowded field of digital innovations and solutions promising to transform work, all the way to monitoring macroeconomic trends and surging geopolitical risk \u2014 it has never been more crucial for chief financial officers (CFOs) to work to ensure they are making their businesses more resilient and better positioned to invest for growth.\n\u201cBeing a strategic CFO means that you are in the business of the business. One of the measures of a finance team\u2019s success is feeling very much in the business as opposed to being a separate back office or mid-office function,\u201d Burt Chao, CFO at\u00a0Pushpay, told PYMNTS for the series \u201cA Day In The Life of a CFO.\u201d\n\u201cA day in the life starts with what the business needs,\u201d Chao said.\nAnd what businesses need more and more is resilience and flexibility, two operational elements that highlight the importance of business partner CFOs aligning financial strategy tightly with enterprise-wide objectives.\nGiven the realities of today\u2019s backdrop, the worst thing for CFOs to do is to build a finance function that\u2019s isolated in a dark conference room setting financial targets and projections on an island, Chao said.\n\u201cEfficiency only gets accomplished by having a two-way dialogue, a conversation with the rest of the business, as opposed to just a one-way set of rules and proclamations,\u201d he said, adding that while \u201cold school CFOs were the \u2018no police\u2019 \u2026 flexibility in today\u2019s environment requires not only proactively generating opportunity but also managing risk by understanding what mistakes a business can afford to make on the path to success.\u201d\nPeople, Process and Tools Define Success \nAs the CFO role evolves from a traditional controllership function to a more strategic and forward-looking position at the leadership table, committed to driving the organization’s strategic goals, the on-paper realities of both finance teams and their internal workflows are transforming too.\n\u201cInternally, the sharpest and most important tool you have are your own people,\u201d Chao said.\nWithin the modern CFO’s expanded role as a business strategist, technology can serve as a force-multiplier but should not be treated as a panacea for all corporate ills and frictions.\nData analytics, robotic process automation and even artificial intelligence (AI) all have roles to play within the finance function, though Chao advocated a measured approach.\n\u201cWe\u2019re not trying to be leading-edge with unproven technologies that could undermine customer trust. The best route is focusing first on hiring the right people, defining resilient processes, then leveraging systems to scale \u2026 codifying what we have learned into more automated and more repeatable process,\u201d he said. \u201cWe need to make sure we are balancing innovation with structure and reliability.\u201d\nFinance as a Multi-Dimensional Organization Driving Results\nKeeping a scorecard of expenses is an easy way for today\u2019s CFOs to fall behind the myriad and multifaceted operational risks they are continually faced with \u2014 rather, they need to embrace a go-forward strategy designed to drive better business outcomes.\nEducating the broader organization on financial principles and ROI-driven decision-making is a critical aspect of successful CFOs. By ensuring and fostering a common language across different functions, finance teams can ensure that decisions are made with a clear understanding of their financial implications, Chao said.\nLooking ahead, Chao\u2019s primary advice for aspiring CFOs is to focus on people. \u201cOrganizations are collections of people, and as a leader, your role is to support the entire organization,\u201d he said.\u00a0\u201cMy aspiration is for CFOs to be seen as business leaders first and functional experts second. We can\u2019t just be siloed financial tacticians, but drivers of educational vigor around ROI discipline for all.\u201d\nBy prioritizing people, embracing technology thoughtfully and fostering open communication, CFOs can significantly contribute to their organizations\u2019 long-term success. As the discussion with Pushpay\u2019s Chao revealed, the modern CFO is not just a financial gatekeeper but a pivotal player in driving strategic growth and innovation.\nThe post How CFOs Act as Force-Multipliers for Business Growth appeared first on PYMNTS.com.", "date_published": "2024-06-05T04:00:19-04:00", "date_modified": "2024-06-04T21:39:57-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/CFOs-business-growth.png", "tags": [ "B2B", "B2B Payments", "Burt Chao", "Business Finance", "CFO", "Chief Financial Officer", "commercial payments", "data analytics", "Day in the Life of a CFO", "Featured News", "News", "pushpay", "PYMNTS News", "pymnts tv", "Technology", "video" ] }, { "id": "https://www.pymnts.com/?p=1954949", "url": "https://www.pymnts.com/cfo/2024/why-there-are-no-sacred-cows-for-todays-cfos/", "title": "Why There Are No Sacred Cows for Today\u2019s CFOs", "content_html": "The global economy today is increasingly marked by volatility and rapid shifts. Geopolitical tensions, technological advancements and changing consumer preferences demand that businesses remain agile yet resilient amidst a backdrop of increasing uncertainty.
\nAnd in such a climate, there are no sacred cows for today\u2019s CFOs. Every aspect of a business is subject to scrutiny and re-allocation as finance functions work to eliminate waste and clean up balance sheets.
\nThat\u2019s what top finance leaders have repeatedly told PYMNTS for the\u00a0series\u00a0\u201cA Day In The\u00a0Life of a CFO,\u201d stressing that gone are the days when certain assets or expenditures were considered untouchable.
\nToday, every line item is under the microscope as CFOs are increasingly tasked with focusing on maximizing operational leverage and ensuring liquidity. This often involves difficult decisions, such as divesting non-core assets, renegotiating debt and implementing cost-cutting measures.
\nOperational leverage, in particular, a firm\u2019s ability to increase profitability through efficient use of fixed costs, has become a focal point for CFOs. By optimizing operations, companies can enhance their earnings potential without proportionately increasing costs. But successfully leveraging this approach requires a deep dive into every aspect of the business, from supply chain management to production processes and beyond.
\nFortunately, digital technology and data-driven solutions are there to help finance teams by automating routine tasks and employing data analytics for better decision-making \u2014 allowing these teams to free up their time and embrace more strategic-level thinking.
\nRead more: The Evolving CFO Role Is Helping Drive Better Results
\nThe future is uncertain, and CFOs must prepare their organizations to withstand shocks and capitalize on opportunities. That\u2019s why, even as businesses give priority to cutting costs, the same companies are still spending to grow \u2014 but the ROI of every investment needs to be incredibly justified and compelling. Cost centers are on the chopping block, while the hunt is on for key growth engines.
\n\u201cPart of the tough job of the CFO is capturing the ambition of an organization\u2019s growth wants and needs and putting that into a financial basket that makes sense, one that you can plan against and resource against,\u201d\u00a0Provi CFO\u00a0Kevin Price told PYMNTS.
\nThink of today\u2019s businesses as a little bit like a Formula One car: in order to compete and win, they need to be engineered as optimally and as intelligently as possible, maximizing efficiency and reliability.
\n\u201cI feel immense accountability for how every team across our business performs,\u201d\u00a0Lauren Dillard, executive vice president and CFO at\u00a0LiveRamp, told PYMNTS. \u201cSmart and tight expense management is key, as is partnering with the business to really understand those different expense levers and ROI data so that we can quickly move the knobs and dials if we don\u2019t see revenue materialized in the way we planned.\u201d
\nScenario planning and stress testing are essential tools for financial planning and risk management, allowing finance leaders to anticipate potential disruptions and develop contingency plans.
\nBut CFOs must balance the immediate need for financial stability with long-term strategic goals. For instance, while finding balance sheet efficiencies through headcount reduction can provide short-term relief, it may also impair the company\u2019s ability to innovate and compete.
\nRead more: Why Measuring the ROI of Transformative Technology Like GenAI Is So Hard
\nAmidst all these strategic and operational considerations, CFOs must not lose sight of the human element. Leading through change requires effective communication and transparency.
\n\u201cThe finance function is one of the roles that sits with a 360-degree view of everything and is the one, at the end of the day, that\u2019s charged with the performance of the business,\u201d\u00a0Scott Casey, CFO at\u00a0Robin AI, told PYMNTS.
\n\u201cInstead of being a passive participant and getting information from the rest of the business, it is key to get out there and work with and really understand what is happening so you can know if what is being done is going to drive numbers that will actually work,\u201d he added. \u201cIt has become more imperative to know about everything and be this kind of polymath about the business.\u201d
\nAfter all, cross-departmental communication is key to grounding effective alignment toward common goals and enables more holistic business strategies.
\n\u201cAll that stuff only works well if we\u2019re collaborating across the teams, working closely with other leaders to ensure that not only are our forecasts going well, but also to make future decisions on where to invest \u2026 the financial budget needs to be working toward the company\u2019s goals in a very explicit way,\u201d Jeff Bray, CFO at\u00a0Semperis, told PYMNTS.
\nThat\u2019s why breaking down silos and fostering a culture of integrated decision-making where intelligence and analysis can be shared across the organization in a common language and understood by leadership is crucial to executing financial strategies that capture any marketplace or operational upside that may be on the table.
\nThe post Why There Are No Sacred Cows for Today\u2019s CFOs appeared first on PYMNTS.com.
\n", "content_text": "The global economy today is increasingly marked by volatility and rapid shifts. Geopolitical tensions, technological advancements and changing consumer preferences demand that businesses remain agile yet resilient amidst a backdrop of increasing uncertainty.\nAnd in such a climate, there are no sacred cows for today\u2019s CFOs. Every aspect of a business is subject to scrutiny and re-allocation as finance functions work to eliminate waste and clean up balance sheets.\nThat\u2019s what top finance leaders have repeatedly told PYMNTS for the\u00a0series\u00a0\u201cA Day In The\u00a0Life of a CFO,\u201d stressing that gone are the days when certain assets or expenditures were considered untouchable.\nToday, every line item is under the microscope as CFOs are increasingly tasked with focusing on maximizing operational leverage and ensuring liquidity. This often involves difficult decisions, such as divesting non-core assets, renegotiating debt and implementing cost-cutting measures.\nOperational leverage, in particular, a firm\u2019s ability to increase profitability through efficient use of fixed costs, has become a focal point for CFOs. By optimizing operations, companies can enhance their earnings potential without proportionately increasing costs. But successfully leveraging this approach requires a deep dive into every aspect of the business, from supply chain management to production processes and beyond.\nFortunately, digital technology and data-driven solutions are there to help finance teams by automating routine tasks and employing data analytics for better decision-making \u2014 allowing these teams to free up their time and embrace more strategic-level thinking.\nRead more: The Evolving CFO Role Is Helping Drive Better Results\nTaking Cost Centers Out of the Business\nThe future is uncertain, and CFOs must prepare their organizations to withstand shocks and capitalize on opportunities. That\u2019s why, even as businesses give priority to cutting costs, the same companies are still spending to grow \u2014 but the ROI of every investment needs to be incredibly justified and compelling. Cost centers are on the chopping block, while the hunt is on for key growth engines.\n\u201cPart of the tough job of the CFO is capturing the ambition of an organization\u2019s growth wants and needs and putting that into a financial basket that makes sense, one that you can plan against and resource against,\u201d\u00a0Provi CFO\u00a0Kevin Price told PYMNTS.\nThink of today\u2019s businesses as a little bit like a Formula One car: in order to compete and win, they need to be engineered as optimally and as intelligently as possible, maximizing efficiency and reliability.\n\u201cI feel immense accountability for how every team across our business performs,\u201d\u00a0Lauren Dillard, executive vice president and CFO at\u00a0LiveRamp, told PYMNTS. \u201cSmart and tight expense management is key, as is partnering with the business to really understand those different expense levers and ROI data so that we can quickly move the knobs and dials if we don\u2019t see revenue materialized in the way we planned.\u201d\nScenario planning and stress testing are essential tools for financial planning and risk management, allowing finance leaders to anticipate potential disruptions and develop contingency plans.\nBut CFOs must balance the immediate need for financial stability with long-term strategic goals. For instance, while finding balance sheet efficiencies through headcount reduction can provide short-term relief, it may also impair the company\u2019s ability to innovate and compete.\nRead more: Why Measuring the ROI of Transformative Technology Like GenAI Is So Hard\nThe Human Factor in Unlocking Operational Leverage\nAmidst all these strategic and operational considerations, CFOs must not lose sight of the human element. Leading through change requires effective communication and transparency.\n\u201cThe finance function is one of the roles that sits with a 360-degree view of everything and is the one, at the end of the day, that\u2019s charged with the performance of the business,\u201d\u00a0Scott Casey, CFO at\u00a0Robin AI, told PYMNTS.\n\u201cInstead of being a passive participant and getting information from the rest of the business, it is key to get out there and work with and really understand what is happening so you can know if what is being done is going to drive numbers that will actually work,\u201d he added. \u201cIt has become more imperative to know about everything and be this kind of polymath about the business.\u201d\nAfter all, cross-departmental communication is key to grounding effective alignment toward common goals and enables more holistic business strategies.\n\u201cAll that stuff only works well if we\u2019re collaborating across the teams, working closely with other leaders to ensure that not only are our forecasts going well, but also to make future decisions on where to invest \u2026 the financial budget needs to be working toward the company\u2019s goals in a very explicit way,\u201d Jeff Bray, CFO at\u00a0Semperis, told PYMNTS.\nThat\u2019s why breaking down silos and fostering a culture of integrated decision-making where intelligence and analysis can be shared across the organization in a common language and understood by leadership is crucial to executing financial strategies that capture any marketplace or operational upside that may be on the table.\nThe post Why There Are No Sacred Cows for Today\u2019s CFOs appeared first on PYMNTS.com.", "date_published": "2024-06-04T18:04:14-04:00", "date_modified": "2024-06-04T18:04:14-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/CFOs-spend-management.png", "tags": [ "B2B", "B2B Payments", "CFOs", "Chief Financial Officers", "commercial payments", "corporate finances", "economy", "News", "payments", "PYMNTS News", "spend management", "treasury", "treasury management", "Uncertainty", "CFO" ] }, { "id": "https://www.pymnts.com/?p=1952808", "url": "https://www.pymnts.com/cfo/2024/cfos-heads-of-payments-take-different-approaches-on-supply-chain-uncertainty/", "title": "CFOs, Heads of Payments Take Different Approaches on Supply Chain Uncertainty", "content_html": "As PYMNTS Intelligence clarifies in its third edition of the 2024 Certainty Project, \u201cHeads of Payments Zero In on Customer Behavior in Uncertainty Debate,\u201d the responsibilities that accompany being a chief financial officer (CFO) are very different from those that head of payments must manage.
\nCFOs are typically in charge of an organization\u2019s overarching financial strategy and management tactics; these can include identifying capital and risk strategies along with broader investor and financial reporting. They are also concerned with macroeconomic factors in operational areas like staffing and inventory management.
\nHeads of payments, meanwhile, are asked to oversee payment processing, technologies and regulatory compliance. They also must manage errors, delays and client turnover. Some are tasked with managing vendors.
\nPYMNTS Intelligence found that these distinct responsibilities tend to color their perspectives; however, both CFOs and heads of payments are expected to be alert to missed opportunities brought on by operational uncertainty.
\nHigh levels of uncertainty are common in most smaller revenue middle-market firms. In firms with annual revenues between $100 million and $250 million, 55% of heads of payments we surveyed report seeing high uncertainty levels in the current market, while a smaller share of CFOs (47%) share this view.
\nHowever, executives operating in both roles agree on what the top three areas of uncertainty currently are: supply chain integrity, customer behavior and competitive positioning.
\nBut, because their roles hone different perspectives, heads of payments and CFOs each deploy different mitigation techniques to address these areas of uncertainty.
\nFor example, consider supply chain integrity.
\nAmong the CFOs we surveyed, 37% mitigate supply chain uncertainty by leveraging skill-based enhancements, training and using process automation. The heads of payment we surveyed took a different tack, deploying more technological resources to ease supply chain uncertainty. One-third dedicated more staff members to addressing supply chain uncertainty. In addition, they used data-intensive insights and analytics to better forecast trends.
\n
This is just one example. Our report found similar gaps when looking at actions to ease overall uncertainty.
\nHeads of payments are more likely than CFOs to turn to their business networks for informal advice, for example. They are also more likely to use human resources to reduce uncertainty, with 30% relying on this strategy. As we saw in their approach to easing supply chain uncertainty, CFOs are more likely to focus on skill enhancement and technological advancement. Half of CFOs opt to further train existing personnel, while 48% hire people with specific skills to help reduce uncertainty.
\nBut technology bridges the gap between these two approaches.
\nHeads of payments and CFOs both employ analytics and process automation extensively, with 47% of heads of payments adding automation and 96% of executives in both roles saying analytics significantly enhance predictability. These tools help to not only manage the volatile business environment but also shore up the foundation for future growth and stability.
\nThe post CFOs, Heads of Payments Take Different Approaches on Supply Chain Uncertainty appeared first on PYMNTS.com.
\n", "content_text": "As PYMNTS Intelligence clarifies in its third edition of the 2024 Certainty Project, \u201cHeads of Payments Zero In on Customer Behavior in Uncertainty Debate,\u201d the responsibilities that accompany being a chief financial officer (CFO) are very different from those that head of payments must manage.\nCFOs are typically in charge of an organization\u2019s overarching financial strategy and management tactics; these can include identifying capital and risk strategies along with broader investor and financial reporting. They are also concerned with macroeconomic factors in operational areas like staffing and inventory management.\nHeads of payments, meanwhile, are asked to oversee payment processing, technologies and regulatory compliance. They also must manage errors, delays and client turnover. Some are tasked with managing vendors.\nPYMNTS Intelligence found that these distinct responsibilities tend to color their perspectives; however, both CFOs and heads of payments are expected to be alert to missed opportunities brought on by operational uncertainty.\nHigh levels of uncertainty are common in most smaller revenue middle-market firms. In firms with annual revenues between $100 million and $250 million, 55% of heads of payments we surveyed report seeing high uncertainty levels in the current market, while a smaller share of CFOs (47%) share this view.\nHowever, executives operating in both roles agree on what the top three areas of uncertainty currently are: supply chain integrity, customer behavior and competitive positioning.\nBut, because their roles hone different perspectives, heads of payments and CFOs each deploy different mitigation techniques to address these areas of uncertainty.\nFor example, consider supply chain integrity.\nAmong the CFOs we surveyed, 37% mitigate supply chain uncertainty by leveraging skill-based enhancements, training and using process automation. The heads of payment we surveyed took a different tack, deploying more technological resources to ease supply chain uncertainty. One-third dedicated more staff members to addressing supply chain uncertainty. In addition, they used data-intensive insights and analytics to better forecast trends.\n\nThis is just one example. Our report found similar gaps when looking at actions to ease overall uncertainty.\nHeads of payments are more likely than CFOs to turn to their business networks for informal advice, for example. They are also more likely to use human resources to reduce uncertainty, with 30% relying on this strategy. As we saw in their approach to easing supply chain uncertainty, CFOs are more likely to focus on skill enhancement and technological advancement. Half of CFOs opt to further train existing personnel, while 48% hire people with specific skills to help reduce uncertainty.\nBut technology bridges the gap between these two approaches.\nHeads of payments and CFOs both employ analytics and process automation extensively, with 47% of heads of payments adding automation and 96% of executives in both roles saying analytics significantly enhance predictability. These tools help to not only manage the volatile business environment but also shore up the foundation for future growth and stability.\nThe post CFOs, Heads of Payments Take Different Approaches on Supply Chain Uncertainty appeared first on PYMNTS.com.", "date_published": "2024-06-03T13:12:55-04:00", "date_modified": "2024-06-06T21:26:01-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/04/CFOs-decision-making.jpg", "tags": [ "B2B", "B2B Payments", "CFO", "commercial payments", "Heads of Payments Zero In on Customer Behavior in Uncertainty Debate", "News", "PYMNTS Intelligence", "PYMNTS News", "Supply Chain", "supply chain management", "Uncertainty" ] } ] }