Stay Sharp. Welcome to Executive Edge.
We’re back! Executives, like everyone else, benefit from taking a break to spend time with family during the holidays. Now that 2025 is underway, we are excited to release the second edition of Executive Edge. This edition is designed to help you refine your expertise, equipping you with the tools to stay ahead of the curve and achieve new levels of success.
In this edition, we provide valuable insights into the evolving role of the Chief Financial Officer (CFO) over the past couple of decades and the implications for today’s C-Suite.
This article draws upon decades of expertise from our partners, Jamie Hersh and Bryn Adams. Representing different generations and unique perspectives within the executive search industry, both specialize in leadership within the Finance and Accounting sector. Together they provide valuable insights into the challenges CFOs will face in 2025 and how they can navigate these challenges to drive organizational success and profitability.
The CFO of 2000
96% of CFOs believe their role will change in the next three years.
In the year 2000 (25 years ago) a CFO’s primary responsibilities were:
- Financial Management and Reporting
- Budgeting and Forecasting
- Risk Management
Maintaining the company’s financial health was their sole responsibility. The role encompassed functions such as overseeing accounting and reporting, ensuring regulatory compliance, preparing and analyzing financial statements, managing budgets, creating financial forecasts, studying financial trends, and identifying and mitigating risks.
While some technological tools were available to assist with these tasks, they were far less advanced compared to what is available today.
Enterprise Resource Planning (ERP) Systems were the primary source of information and core workflow tool, but they were often legacy on-premise solutions, monolithic in nature, and suffered from version sprawl.
Version sprawl is…
“Version sprawl” occurs when an organization runs multiple versions of the same software due to different teams or departments using various updates. This creates management challenges, potential compatibility issues, and increased security risks.
Beyond that, basic accounting software and online invoice processing systems were relied upon and rarely operated on the cloud.
It’s hard to imagine now, isn’t it? But many CFOs remember those challenges and appreciate the advanced tools available today. However, with improved capabilities comes a greater responsibility to achieve more.
Strategic Shifts for CFOs
4 hours of a CFO’s day are spent on non-traditional CFO activities.
In the years between 2000 and 2025, CFOs have seen their roles change as technology has evolved. While still primarily focused on financial stewardship, CFOs began to take on a more strategic role within their organizations.
The Sarbanes-Oxley Act of 2002 was passed to protect investors from fraudulent financial reporting by corporations, following a number of widely publicized financial scandals. This legislation led to expanded financial regulations and greater government oversight, broadening the role of the CFO in ensuring compliance.
The new, stricter rules imposed by SOX drove demand for more efficient and technology-driven processes. Cloud-based financial management tools were starting to emerge, and CFOs were required to use software to complete their work, further protecting the company’s financial integrity.
Modern CFOs Provide Strategic Leadership and Advice
With the expanded roles that CFOs held, companies began to expect even more of their financial executives. The bar was raised as it pertained to the CFO’s contribution to the organization.
They became vital members of the executive team, advising the CEO and other leaders as strategic business partners to shape the broader decision-making process.
Managing relationships with key stakeholders and playing a broader role in business operations became standard, alongside expectations of preserving and optimizing company assets.
This period marked the beginning of a significant shift in the CFO’s role, laying the foundation for the more evolved, diverse, and strategic position we think of today.
What’s Next for CFOs?
85% of surveyed CFOs believe their role will involve more strategy and counsel for the overall business.
The Finance & Accounting industry is evolving at an increasingly rapid pace. A comprehensive understanding of their company’s industry, markets, and client base equips financial executives to make more informed decisions.
Companies searching for their next CFO want a strategic advisor capable of leading them through economic uncertainties and complex market dynamics.
CFOs with these characteristics will make the strongest candidates for the top roles with innovative and forward-thinking companies:
- Ability to understand and analyze translate complex data to non-finance executives
- Private equity and merger and acquisition experience
- Working knowledge of technology and data analytics software and tools
- Proven track record of successfully leading a company through a digital transformation
- Above all, strategic thinking and leadership capabilities
Don’t miss the next edition of Executive Edge! We’ll be covering Data Analytics as a necessary skill for modern finance leaders.
Finance & Accounting Trends Shaping the 2025 C-Suite
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