As an enterprise owner, you have probably seen how the role of CFOs has changed over the years. Today, 82% of finance leaders report a dramatic shift in their core expertise, moving beyond number-crunching associates to play a pivotal role in shaping business strategy. But how do you ensure your CFO is equipped to handle this evolution? Success now hinges on mastering a diverse skill set that goes far beyond traditional financial stewardship for CFOs. Your CFO’s decisions not only balance the finances and drive growth but also ensure compliance and align resources with your broader business goals. In this blog, we’ll dive into the essential skills for CFOs that enable them to elevate strategy and execution in your business, particularly in the context of Australian enterprises.
11 Essential CFO Skills for Strategy & Execution
A CFO should be viewed as a holistic guardian of financial stability and risk management. Their guardianship involves understanding how various business operational factors interact with market dynamics and the money flow.
The modern CFO is now seen as a Chief Value Officer responsible for financial oversight and business growth. CFOs need access to the right insights, tools, and teams to succeed in this evolving role. Engage with industry experts at the Brisbane CFO Symposium on May 27, 2025, to learn how Business Avengers can empower CFOs to drive value and strategic growth.
1. Strategic Vision and Leadership Abilities
Strategic planning is crucial for Australian businesses to stay future-ready and drive long-term accounting success. Your CFO’s strategic vision not only sets the course for the company but also ensures every decision aligns with broader organisational goals.
How to evaluate: Ask for specific examples where their strategic vision translated into measurable outcomes, such as increased revenue or successful market entry. Request insights into their collaboration with CEOs or leadership teams—did they identify investment opportunities that led to tangible growth?
Review their ability to manage mergers and acquisitions or guide teams through economic challenges. Speak with key team members to assess whether their leadership inspires alignment across departments approaching company-wide objectives.
2. Proficiency in Risk Management
A CFO must stay current with changing legislation, regulations, and statutory reporting requirements. Their methods must include attending conferences, revising professional memberships, and seeking external tax advice, risk, and compliance to stay ahead of the finance curve.
How to evaluate: Ask for examples of how they proactively mitigated risks, such as addressing supply chain disruptions or managing financial stability during market downturns. For instance, if the CEO is considering publicising the company, understand how they would approach this with solid financial analysis to safeguard the business against potential losses.
Moreover, assess their ability to anticipate risks by reviewing past strategies they implemented to balance economic uncertainties, ensuring your business remains secure and future-ready.
3. Expertise in Financial Accounting, Cash Flow, and Corporate Finance
Your CFO’s ability to handle financial statements, tax planning, budgeting, and forecasting is foundational to their role. They ensure that the company’s finances are accurately reflected and compliant with relevant enterprise regulations.
How to evaluate: Request financial reports they have produced to assess their accuracy, compliance, and clarity. Inquire about instances where they improved cash flow, optimised tax planning, or streamlined budgeting processes to enhance operational efficiency.
Dive into their ability to create forecasts based on historical organisational data and market trends—were these forecasts instrumental in guiding resource allocation or setting realistic targets? Their effectiveness should be reflected in measurable improvements to your company’s financial health.
4. Making Data-Driven Decisions
Strategic financial decisions are critical, and CFOs know that data-driven decision-making is the key. Your strategic finance maker transforms complex datasets into clear, actionable insights by leveraging tools like dashboards and visual reporting systems.
How to evaluate: Study their case studies where they used data visualisation tools to identify growth opportunities, mitigate risks, or optimise cash flow. Review how effectively they have used these insights to craft narratives that engage stakeholders. Inquire about a time when their data-driven approach resulted in higher ROI or supported a key business decision.
A CFO’s ability to convert raw financial data into actionable strategies is a strong indicator of their value to your organisation. It keeps the stakeholders intact and completely aligned with the business performance.
5. Strategic Planning and Forecasting Skills
Acknowledging how to align resources effectively with the changing market environment helps become a strategic vision icon for other people building their market.
How to evaluate: Request examples of how their strategic planning directly impacted business growth—did their resource allocation processes reduce costs or open new revenue opportunities for an organisation?
Ask how they anticipate future challenges by examining economic trends and key KPIs. Learn whether their forecasts consistently prepared the business for market changes. A capable CFO will provide clear evidence of how their strategic foresight has enhanced business performance and minimised downtime.
6. Setting and Tracking Key Performance Indicators (KPIs)
A CFO must ensure the right KPIs are in place to assess the financial health of the business, such as growth, revenue, profitability, and cash flow. Operational KPIs like customer acquisition costs and employee productivity also provide valuable insights into overall business health.
These metrics are crucial for understanding the health of the business and driving improvements. A CFO can identify areas needing improvement and create step-wise strategies for growth by tracking and analysing these metrics.
How to evaluate: Ask for examples of KPIs they have used to monitor financial and operational performance. How did they identify underperforming areas, and what actions did they take to drive improvements?
Review how effectively their KPI-driven strategies translated into tangible results, such as increased efficiency or higher profitability.
7. Mastering Communication to Align Teams and Goals
A CFO must clearly communicate financial data to stakeholders, ensuring transparency and trust. Their ability to break down complex financial data into understandable text for board members, investors, and employees is critical for decision-making.
This helps build deep collaboration across departments, aligning financial strategies and operational goals. Additionally, a modern CFO must handle tough conversations gracefully, building confidence and morale within the organisation.
How to evaluate: Ask how they have handled challenging conversations or communicated tough decisions with investors and stakeholders. Look for examples where their clear communication led to team alignment or strategic success.
Review how effectively they build stakeholder trust by delivering accessible, accurate, and actionable financial data. It’s not just about the reports themselves, but how they are represented makes it crucial when evaluating a CFO for your organisation.
8. Commitment to Ethical Standards and Integrity
The CFO plays a pivotal role in safeguarding an organisation’s reputation by maintaining transparency, ethical practices, and compliance with legal standards. Their unwavering commitment to integrity ensures trust among employees, customers, and stakeholders, even during tough financial decisions.
How to evaluate: Ask for examples of how they upheld ethical standards in challenging situations, such as processing regulatory changes or making difficult cost-cutting decisions. Review their track record of maintaining business compliance and transparency for tax, cash flow, and clear revenue streams while balancing stakeholder expectations.
Their ability to steer difficult decisions while upholding ethical standards represents their commitment to maintaining the long-term reputation of a business within the market.
9. Leading Digital Transformation Efforts
The CFO plays a pivotal role in safeguarding an organisation’s reputation by maintaining transparency, ethical practices, and compliance with legal standards. Their unwavering commitment to integrity ensures trust among employees, customers, and stakeholders, even during tough financial decisions.
How to evaluate: Ask for examples of how they upheld ethical standards in challenging situations, such as processing regulatory changes or making difficult cost-cutting decisions. Review their track record of maintaining business compliance and transparency for tax, cash flow, and clear revenue streams while balancing stakeholder expectations.
Their ability to steer difficult decisions while upholding ethical standards represents their commitment to maintaining the long-term reputation of a business within the market.
10. Building Strong Investor Relations
Maintaining strong investor relationships goes beyond presenting financial reports. A CFO must confidently address investor questions, explain data in context, and demonstrate strategic financial maturity to build trust. Their role as a liaison between the company, investors, analysts, and stakeholders is crucial in ensuring credibility and confidence.
How to evaluate: Ask for specific examples of how they managed investor concerns or handled difficult conversations. Did they demonstrate clarity and composure while effectively communicating the company’s financial health and strategy? Assess their ability to enlighten trust and maintain investor confidence through clear and timely financial year updates.
A CFO’s ability to build sustainable investor relations is critical not only in times of growth but also during challenging periods, where transparency and strategic talks are paramount for maintaining stakeholder trust.
11. Acknowledging ERP Systems
ERP systems are indispensable tools for modern CFOs, streamlining processes like accounting, payroll, and procurement. A CFO must have hands-on experience with ERP systems to optimise financial operations and reduce errors. They should collaborate with IT to customise ERP systems to fit the company’s needs, ensuring data-driven decisions and efficient financial management.
How to evaluate: Ask about ERP systems they have implemented and how this improved business efficiency or reduced operational costs. Request examples of how they used ERP tools to monitor KPIs, identify trends, and make strategic decisions.
Their ability to tailor ERP settings to support your business’s financial and operational goals highlights their technical expertise.
Why Do CFO Skills Matter for Australian Businesses?
CFO skills are critical for Australian businesses, as they provide the financial expertise needed to navigate challenges and drive growth. A skilled CFO ensures that financial operations align with the company’s goals and supports strategic decision-making for long-term success.
CFO skills are essential for Australian businesses because they:
- Align financial strategies with business goals for growth and profitability.
- Identify and mitigate financial risks.
- Ensure liquidity and improve cash flow.
- Maintain compliance and minimize tax liabilities.
- Advise on investments, mergers, and capital allocation.
- Communicate financial performance to build confidence and secure funding.
With 66% of finance leaders reporting staffing shortages in 2024, ensuring accurate bookkeeping has become increasingly challenging. Business Avengers addresses this issue by providing comprehensive training and connecting CFOs with skilled professionals, thereby reducing errors and enhancing financial accuracy.
Join us at the Brisbane CFO Symposium on May 27, 2025, to discover how Business Avengers can support your talent acquisition and retention strategies.
