Journey : CA to CFO Jugal Mantri 21 st June, 2012

Transcription

1 1 Journey : CA to CFO Jugal Mantri 21 st June, 2012

2 Opportunities for a CA SERVICE PRACTICE Accounting Branch/SBU Accounting Corporate Accounts ERP/ SAP Consultant Taxation Direct taxes Indirect taxes Finance Treasury/FOREX Cash Management System/ Banking Resource raising Financial Services Investment banker Research Analyst Relationship Manager Audits Internal Audit/ Inspection System Audit Bank Audit Statutory Audit Tax Audit Taxation Tax Planning Tax Assessment, Appeal, Scrutiny Corporate Finance Back-office Funds Arrangement/ Syndication Advisory/ Consultancy Coaching, Family Business, Entrepreneur, etc 2

3 A professional s Career path in a company Director Manager Executive 3

4 Role of a CFO - Guardian CFO as Guardian Protect and Preserve Assets Comply with Financial Reporting and Control requirement Effective Guardian/ Steward Standardise System, data and processes Single version of truth Data Ownership Own the data and ensure timely collection and governance of financial and management reporting Risk Management Understand business, processes and assess risk then focus on the continuous monitoring and control Attract and retain Talent Establish Authority Establish finance authority matrix to simplify decision making and clarify responsibilities 4

5 Role of a CFO - Operator CFO as Operator Establish Balance in Service level and Cost Structure Drive Cost Reduction Instrumental in increasing efficiency Effective Operator Centralise processes, Services and create Centers of excellence and shared services to drive efficiency Create strong pool of internal talent and harness people skill so that people can be deployed befitting their strengths and interest Improve Performance Management by designing effective programs to measure and evaluate performance Cost Reduction and Control 5

6 Top 10 responsibilities of traditional CFO 1. Cash Flow Control Sources and Uses, Cash is King 2. Company Liabilities Understand legal, statutory & Tax liabilities 3. Company Performance Understand business model and formulate operational metrics to measure 4. Department Supervision Support accounting and financial function using job description, policies and procedures 5. Budgeting and Expense Control Overseeing the process 6. Financial Relationships Maintain lines of communication with IB, Analyst, shareholders, banks, FIs, lenders 7. Capital Raising Establish and execute program for the provision of capital and debt 8. Financial Obligations Approve agreements for raw material, Capex, IT assets, services, etc. 9. Record Control Maintenance and audit of records 10. Shareholder Relations Provide Annual and interim reports 6

7 Role of a CFO - Strategist CFO as Strategist Assist CEO/Board to set the future direction Effective Strategist Involved in goal setting and outlining the vision and mission Test business continuity and resource allocation in changing environment Provide financial perspective of new initiatives and use value based portfolio management to assign priority Cost-benefit analysis of various alternatives 7

8 Role of a CFO - Catalyst CFO as Catalyst Role enhancement Partner with other business leaders in identifying, evaluating and executing strategies Effective Catalyst Most effective finance function uses financial savvy and value discipline in every part of the organisation Promote financial literacy (Sales/ Purchase/ Store empowered with tools to understand impact of price points/product mix) Build a framework for disciplined execution Lead by Example through personal leadership, measurement and commitment 8

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10 Qualities of a CFO Business knowledge and strong understanding of company operations Financial accounting, cash management and corporate finance competence Self confidence and willingness to take a stand Result oriented mindset Communication skills Reliability Strong work ethics Uncompromising integrity and ethical standards Strategic vision and leadership skills 10

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