What do you expect from a CFO? In another word, what kind of CFO is an excellent CFO both in normal operation situation and in a process of going public.
I am quite familiar with the CFO role for listing process which mainly includes:
- restructure the whole organization and business to make it simple and competitive and fulfill the requirement of merge accounting;
- prepare and finalize the staff option scheme
- ensure internal controls over financial reporting are effective and in place to comply with Sox requirement;
- ensure the financial information is fairly stated in accordance with either HGAAP/USGAAP/IFRS and listing rules
- coordinate with all parties, including external auditor, joint book runners, lawyers and valuer, etc and solve relevant issues arising during the course;
- ensure F1 is well prepared and follow up comments issued by SEC until being listed.
- handle investor relationships, especially for involvement in share price negotiation and determination
- do road show
However, as I have been working as either an external auditor or consultant, I am not really sit in a CFO role in a commercial firm. I am not so familiar of a CFO’s role in normal operation. What I can think of may include:
- ensure daily booking and monthly/quarterly/annual reporting is prepared properly and timely, which could be addressed by a sound internal control system once established;
- tax compliance;
- financing and cash flow management;
- budget management;
- act as a decision maker in operating activities from finance and accounting aspect.
The above is what I have some ideas.
From your opinions, what do you think a CFO should pay attention to, or in another word, what are the challenges for a CFO?
This is a question in my mind now. I am thinking of posting this in forum while it seems to be too specialized and boring to most members. So I raise this question in blog section.
If any of you can share with me your opinions, it will be very appreciated!
Thanks a lot for your input in advance!