The role of CFO has changed significantly in recent years. A more competitive market landscape, a keener focus on corporate governance,
and issues such as risk management all play a part in the evolving role of the CFO. This executive guide identifies the key challenges today’s CFOs face,
and outlines a proactive approach to financial operations starting with the organization’s managed IT services.
A series of corporate scandals in recent years has put pressure on the CFO to report accurate and reliable corporate disclosures. J.D.
Power & Associates confirms that those “involved in the auditing process are feeling the pressure of increased requirements.” How IT Compounds Compliancy: Changes to federal statutes, like Sarbanes-Oxley, make a CFO accountable for improving and
extending not only the corporate financial infrastructure, but also the IT infrastructure on which the corporate data is stored and processed.
There is increasing pressure for CFOs to provide more accurate forecasts, not just of financial performance but also of the fundamental
business drivers to reduce costs while increasing productivity. According to the publishers of CFO Magazine, more than 40 percent of CFOs
said one of their top priorities is to improve planning processes and provide better forecasts. Houston Managed IT Services: Around the contry and in Houston, information technology has quietly assumed a larger portion of
the corporate budget and has consequently become more integrated with the overall financial plan. Most pundits agree that the purchase cost of equipment
represents only a fraction of the total IT budget. The volatile nature of IT, such as unexpected crashes, security threats and upgrades only increases budget uncertainty.
Managing Risks and Liabilities
CFOs are under constant pressure to evaluate the level of risk and return on any investment. During times of recession, declining sales compel CFOs to reduce costs to
protect the bottom line. However, in today’s competitive market, CFOs must do so without harming growth potential, or putting the organization at risk. How IT Compounds Risks and Liabilities: The more IT equipment, the greater the risk.
However, most organizations must over-invest in IT to meet growing demand, thus increasing expenditures and the involved risk of IT maintenance and management.
Challenge the Status Quo
The CFO must be an agent of change – to help understand evolving market trends, to question the current business model and help move the organization forward.
CFOs must provide insight and knowledge of the competitive landscape and evaluate the resources to execute a company’s mission. How IT Compounds the Status Quo: The conventional process of purchasing, installing, managing, protecting and supporting an
onsite IT system has become a vicious cycle and runs contrary to the CFOs role to reduce recurrent expenditures.
CFOs today must look beyond the balance sheet to truly understand a company’s risks and opportunities.
He or she must ensure that the created value is properly communicated to the management team as well as the financial community. spanHow IT Compounds the Communication: IT has become the one department within the corporation that most don’t fully understand.
Perplexing technical jargon and uncovering the productivity effects of downtime makes it difficult to accurately relay the benefits to other members of the organization.
We hope you have found this information helpful. If you feel that your current process does not meet these standards, or if you would like more information on IT outsourcing please feel free to contact us: