The rate of change impacting many of our enterprises and industries continues to escalate. Of the many jobs within our organisations, one in particular has become much more demanding. It’s the role of the CFO. The person responsible for ensuring the organisation they serve is growing both sustainably and profitably.
So then, how do CFOs decide who to hire into their finance organisations to meet and overcome these challenges?
Time Driven Activity Based Costing is a costing method that uses the time required to complete each step in a process to produce a product or deliver a service. The cost of a product or service is determined by multiplying the total time required to complete a series of process steps by the capacity cost rate, whereas the capacity cost rate (expressed as a cost per unit of time) is determined by the total cost of capacity supplied (such costs include personnel; benefits; management; occupancy; utilities; equipment costs; and allocated indirect and overhead spending) divided by the practical capacity of resources (expressed using a unit of time) within a given time period.
The role of a CFO has been changing recently. A CFO can no longer be seen as someone who is responsible for cutting costs as a means of maintaining the profits. It is not a matter of dominating the financial principles; instead, CFOs must develop a strategic discipline to be effective financial leaders (Caglar, Mani & Peters 2015). Although a strong background in accounting and compliance is still important, there is a tendency for CFOs to improve their non-technical skills through financial planning and analysis, treasury and capital markets experience.
Dave and Steve discuss the COVID impact on CFOs, their companies - including CFO.University - and the path forward.
There are two types of accountant and finance professional, those that ensure the appropriate controls and compliance are in place so that the numbers are accurate and consistent – let’s call this preserving value, and then there are those who are coming out from behind their desks, engaging with the business on meaningful problems, solving them, being a trusted sparring partner and financial mentor – let’s call this creating and capturing. How do we make sure we have the opportunity to be the latter?
