(1) CFO Responsibilities and their Impact on Ultimate Objective of Company
The company which is selected is Hansen Technologies listed on Australian Stock Exchange. Hansen Technologies is an IT company and is providing different software facilities to different companies. It has been operating in Australia as well as in other European and Asian countries. The services and the products include billing and sales soft wares and as well as hardware facilities. (Hansen Technologies, 2013)
The post of CFO is one of the most required and necessary post for an organization as the effective financial abilities and vast accounting knowledge is required for carrying out the operations smoothly and to make the company’s financial position strong. In the recent environment and new entrant with new innovative strategies and increasing customer demand has led the focus on the companies on delivering high quality products by incurring lowest possible cost. CFOs of the companies have to fulfill their responsibilities in order to achieve these goals. . The three general areas of responsibility for a chief financial officer of a big company like Hansen Technologies are;
Dealing with daily financial matters:
One of the core responsibilities of a CFO which is considered at the first priority to him is the management and financing the daily activities carried out to earn profits and run the operations of the business smoothly. The management of the daily business activities involve the fulfilling the regulatory requirements and as well assolving the other compliance issues. These regulatory requirements include the tax fillings as well as the cist and exercise issues. Other than these requirements the reporting of the company’s operations and its performance for internal as well as external purpose also lies under the responsibility of a CFO. The financial reporting management is a very important task as the decisions of many stakeholders are depended on such reports. These reports include the annual review, annual reports and as well as interim reports and AGM review. On the other hand dealing with the daily financial management the CFO is responsible for providing the sufficient amount of cash required by the operations to run smoothly without any disruptions or delay. In order to manage the daily requirements and arrangement of the required funds a complete plan of finance requirement and allocation of these funds among the activities has to be made by CFO for the coming period to avoid any shortfalls. (Lyon & Lawson, 2012)In the case of Hansen Technologies as the company is dealing with the IT products where single products is manufactured on customer specifications and involves a large amount of finance, the correct allocation and on time delivery of the funds are very important as they may lead to delays in production.
Cost Reduction in Operations:
CFO is on the highest level of hierarchy while considering the finance personnel of an organization therefore it is considered as one of the leaders to the organization. the participation in the economic decision is required by CFO. Another very important responsibility of the CFO includes the maintenance of the financial strength of a company in order to acquire opportunities in the market and as well as to compete with the competitors. The fulfillment of this responsibility will ultimately lead to the increase in the shareholder’s wealth. As taking in view the strategic approach of the Hansen Technologies, it includes the provision of high quality products at low cost to their customers. CFO has to provide the management with different strategies, approaches and ideas for cost reduction in order to increase efficiency, economy and effectiveness. This can be achieved by finding the strengths and weaknesses in the company’s operations through comparisons and analysis. Moreover in order to attract new investors and to satisfy the existing shareholders, CFO has to present a strong image of
