Is it possible to “cultivate CFOs” within SMEs?

A long time ago, the job titles of a company were unified, such as the chairman, president, and general manager, but in recent years, the job titles in horizontal letters have become firmly established. The most obvious example is the CEO (Chief Executive Officer). A CEO is the chief executive officer, and the representative director is probably the closest of the traditional job titles. The CEO and president are often confused because they often serve concurrently as representative director and president. And in the last few years, the CFO (Chief Financial Officer) has begun to be newly recognized. This time, let’s think about training CFOs in SMEs.

First of all, the conclusion is that it is quite difficult to train a CFO within a domestic SME. With that in mind, let’s review the abilities required of a CFO below.

First is the financial capacity

The CFO is in a position to grasp the cash flow within the company and “express opinions on future management based on the numerical values.” For this reason, a wealth of experience and knowledge is required not only in finance but also in accounting and taxation. Accounting and tax experience in SMEs will help develop CFOs. This is because, unlike a large company that has a large number of employees and cannot easily get a key position, it can handle a wide variety of tasks. But when it comes to finance, the story is different. Larger companies have more money to move on a daily basis than small and medium-sized companies. In particular, “regular large-scale financing” is an extremely valuable achievement for those who aim to become CFOs.

Next is the management planning ability

The CFO is in a position to be involved in the planning of business plans together with the CEO. We must promptly detect and analyze changes in the environment surrounding the industry, and then make plans while paying attention to the verification of corporate value. Creating a management report that summarizes these contents is also one of the important tasks of the CFO. However, it is extremely difficult to hone these skills at the same time while being in charge of finance within a small business. In terms of business planning, it is no wonder that the CFO services for small business is suitable because it is said that “people with work experience in strategic consulting firms”. It is fully possible for small and medium-sized enterprises to brush up their management and communication skills depending on the aptitude of human resources. In terms of operations and personnel management, having them experience various tasks while changing departments will lead to the development of CFOs. However, the CFO originates from overseas and has an international sensation in the way the job is done. Securing human resources who have this feeling, including language ability, will be extremely difficult in the present age when it is said that it is difficult to hire. Especially for SMEs, the hurdle is high.

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