When I was in college, I felt really lost. Being an immigrant who lived in a different country through high school and luckily got into a college because I was trained to score well on standard testing did not help me choose my major. Initially, I thought I could become a doctor, but when a friend told me that the biology class I was failing was for non-majors, I knew I had to pick something else. One of my friends eventually convinced me to study Accounting because, with a degree in accounting, I would always have a job (and he was right). Even after being accepted into the business school and studying Accounting, I still had little idea of what I would do in the future.

Now, as a CFO for a company with a $25M – $50M revenue range, I am responsible for all financial matters of the company. My main responsibilities include financial reporting, financial analysis & planning, treasury management, tax matters, M&A, and investor relations. However, during my first year as a CFO, I realized that the traditional finance responsibilities are expected as a baseline. To be an exceptional CFO, I needed to also focus on value creation initiatives and engage with other business leaders in the company.

I would like to call out three key words that a CFO should focus on while fulfilling the traditional finance responsibilities that also create tangible value for the company:

Clarity (Financial Reporting): First, the CFO needs to do a thorough assessment of where the company stands and should have a deep understanding of the current financial situation. From understanding overall P&L trends to having a detailed understanding of what transactions hit which line item on financials, the CFO should be able to interpret the story behind the numbers. This understanding provides insight into the levers available to enhance financial performance and the risks that need to be addressed to minimize business exposures.

Aspiration (Financial Modeling): Once the CFO has a good understanding of where the company stands today, they should build projections and set goals that the company aspires to achieve. This exercise should not be a mere modeling exercise by the finance team but must involve the entire company, including leadership from all business functions. During this time, the CFO should gather perspectives from each business leader, who might have deeper expertise in their respective areas and are involved in day-to-day operations, on opportunities and risks identified. Based on discussions and feedback from the team, the CFO should develop targets and set the direction of the company, working closely with the CEO so that everyone in the organization is clear on where the company is headed and what goals it is trying to achieve.

Focus (KPI Management): Once everyone is aligned on the direction and targets, the CFO should help each business leader to focus on value levers, address the identified risks by providing frequent and consistent feedback. By consistently reviewing KPIs, the company can measure incremental improvements that might seem small week over week but can be significant over a longer period.