# Role of the Finance Executive & Organisation of the Finance Function
## The Changing Role of the Finance Executive
- Evolution: Modern financial management has moved far beyond traditional corporate finance. With globalization, liberalization and the opening up of markets, finance managers now have access to far wider opportunities.
- New era for CFOs: The Chief Financial Officer (CFO) has moved from being limited to cost management and controls to becoming integral to business strategy, transformation and growth.
### Key responsibilities of the modern finance executive
1. Financial Analysis & Planning — determine the right quantum of funds; decide the firm's size and growth rate.
2. Investment Decisions — allocate funds efficiently to assets.
3. Financing & Capital Structure Decisions — raise funds on favourable terms; set the debt–equity structure.
4. Management of Financial Resources — ensure effective working capital management.
5. Risk Management — protect the firm's assets from potential risks.
> Jeff Thomson (IMA President & CEO): "Today's CFO team is expected to add value well beyond the traditional roles of cost management, controls, and acting as the conscience of the organization. They must collaborate, integrate key business processes, and act as catalysts for business transformation and trusted advisors to drive sustainable growth."
## Organisation of the Finance Function — Past vs. Present CFO
Historically the CFO's role was confined to accounting, reporting and risk management. Today the CFO is a strategic business partner to the CEO, central to decision-making and long-term strategy.
| What a CFO Used To Do | What a CFO Now Does |
|---|---|
| Budgeting | Budgeting |
| Forecasting | Forecasting |
| Accounting | Managing Mergers & Acquisitions (M&As) |
| Treasury (cash management) | Profitability analysis (by customer/product) |
| Preparing internal financial reports | Pricing analysis |
| Preparing quarterly/annual filings | Decisions about outsourcing |
| Tax filing | Overseeing the IT function |
| Tracking accounts payable & receivable | Overseeing the HR function |
| Travel & entertainment expense management | Strategic planning (sometimes overseeing it) |
| Regulatory compliance | Risk management |
Takeaway: The role has expanded from a score-keeper / steward (recording and reporting) to a strategist and catalyst (driving growth and transformation), while still retaining core functions like budgeting and forecasting.