VideoDavid McCann, CFO.com | US
October 17, 2008
- CFO beware
I have heard this story many times before and the one thing it leaves out is that it places the CFO who is hired for his "capital raising skills" in the uncomfortable position of advocate, which depending on how badly the company needs that capital, can be directly opposed to his role as "scorekeeper" and even "truth teller". I think it is a much better arrangement when the CEO and CFO are working together in the capital raising area so that when an advocacy position is needed, the CEO can carry that ball.
Posted by Robert Tomlinson | Oct 30, 2008 4:13 PM ET
- Diversity-Is Key
I agree with Consuelo, accounting skills are the foundation to become an effective CFO. Mr. Finance, accountants are no longer considered "bean counters" and our profession will continue to be in demand. A CFO should focus on being well diversed in Accounting, Finance, Compliance, Operating functions and Capital Markets. The more knowledgeable you are in various areas will help you be able to be more efficient and effective as a CFO.
Posted by Vonetta King | Oct 24, 2008 9:00 AM ET
- Response to Mr. Finance
Mr. Finance,
I understand you being proud of your profession however, it does not take away the great qualifications of accountants, who, by the way, have knowledge of finance too. What kind of accountants have you met that you refer to them as "bean counters"?
Many accountants are able to adapt and understand the importance of operating capital, and not only that, they really bring value to their corporations with their great background that combines accounting, finance, decision-making, and knowledge of the market conditions.
I disagree with those who are looking for a shift in the profile of CFOs. Now more than ever Certified Public Accountants, who combine their actual knowledge and skills with analysis and understanding of what is taking place in the market, are ideal candidates for successful CFOs. No one can learn overnight the ins and outs of the accounting profession. However, accountants who want to reach the CFO position will focus more on the financial analysis component required today.
Being ready for oversight and compliance are two factors that can really make a difference in the corporate world. On top of it, being skillful in raising capital has to do with following laws and regulations along with meeting stakeholders' expectations.
History will tell if this shift takes place. I do not see that happening.Posted by Consuelo Herrera | Oct 20, 2008 8:36 AM ET
- Executive Lease Advisor
As a Direct Lender for Finance I can tell you that those CFO's who understand how to adapt, and also understand the importance of operating capital in this crisis,.. They are the one's who will still have a career next year, not the bean counters.
Posted by Mr. Finance | Oct 17, 2008 6:08 PM ET
- Jack of All Trades
As a 39 year old controller and CPA who aspires to become a CFO, I have just one question: what does CEO.com say a CEO needs to do these days? Mr. Banker is right; I can't imagine any CFO not being an expert in understanding the financials surrounding his or her company. Do the people who write these articles or are interviewed for these articles have any clue how difficult it is to master all things financial and keep up to date on accounting standards? That's hypothethical; I noted those interviewed for the article were basically all consultants... I guess I should dust off my (worthless - oops, did I just say that?) marketing texts from grad school; I need to master those skills as well.
Posted by Benjamin Algeo | Oct 17, 2008 3:43 PM ET
- CFOs must be Accountants
As a 25-year investment professional, I assure you that any company that hires a non-accountant as its CFO will be regarded in a highly unfavorable light and will experience great difficulty raising capital. It is imperative that all CFOs have extensive accounting backgrounds to ensure their understanding of their companies' financial underpinnings.
Posted by Mr Banker | Oct 17, 2008 12:35 PM ET
