How has the role of CFO evolved over the past few years as a result of increased scrutiny from state and federal regulators and corporate governance requirements?
Even for small privately-held companies the corporate governance requirements have caused some significant concern. We are required to investigate and understand the requirements – what does or doesn’t apply – and then we may also have to make the decisions to incorporate the changes for the future, even if they don’t apply now. In some cases it hasn’t drastically impacted the procedures as much as it has delayed the process of getting additional required approvals and sign-offs. As an architectural firm, we have a number of projects in the public sector and must spend significant time addressing ever changing state requirements for contract procurement as well as the continuing flow of compliance documents required to substantiate that we are following the applicable state laws and regulations. This is in addition to license requirements that need to be monitored and maintained, which differ from state to state. We are not unduly impacted at the federal level, but we do have some federal contracts with another set of reporting requirements that have to be implemented and monitored.
What talents and credentials do you perceive as essential for a CFO to be qualified and succeed in today’s business environment?
Obviously, a MBA or CPA is typically required and valuable, but I believe that knowledge and understanding of risk management, information technology, insurance, benefits, contracts and legal issues are also essential to being successful. These areas all have a financial impact on the organization, therefore, often involve input and resources from the finance group and can have a significant impact on cash flow and the financial performance of the company. You need to be able to jump from macro issues to micro issues and back again as needed, depending on what is currently impacting your organization. In addition, you need to continually educate yourself about developments in the world of accounting and finance including the changes we discussed previously, as well as the changes and trends in the various markets your company does business in.
How has today’s difficult economy affected your role as CFO?
It has certainly added an additional layer of complexity to what I do. I am currently spending more effort on short-term planning than before the banking and mortgage crisis took place. It has significantly changed how we approach business relationships on behalf of our firm. The economy demands that we re-think everything we do, with an eye to anticipating how our current operations will impact what we do. Certainly, the banking industry is looking at lending differently than before and we need to consider how that affects us in the short-term as we deal with the tightened credit market and how these issues will affect renewals and underwriting. We also have to view our clients differently as the current lending market has drastically impacted them as well. Even long-term clients have been affected by the current climate and have changed how they are approaching their business and new projects. We need to understand the significance of that and adapt to it. At the same time, we must remain focused on long-term strategy in order to ensure that we are prepared for the market to improve, and when it does, for any differences that emerge.
What are the top challenges you face in your role as CFO?
I always find having enough quality time to devote to all the facets and responsibilities of the role to be a challenge. Issues are more complex and deadlines only get shorter and must be solved with fewer resources than ever before. In addition, the current economy has required renewed attention to what might once have been considered routine business, and these matters can often require unanticipated time to resolve. Since our business is mainly project focused, and workload can change quickly and often, it’s an on-going challenge to analyze and understand the financial implications of managing the resources with available work and long-term backlog. Long-term decisions can be difficult to implement if there are significant changes to projects’ status in the short-term. Keeping focused on the long-term objectives while dealing with short-term business issues is a big challenge.
What aspects of your role bring you the most job satisfaction?
The unique challenges that each new client and project bring to our organization brings me the most satisfaction. While certain accounting and financial practices and responsibilities are often repetitive, every project and client provides a rich learning opportunity that we use to improve our business. I also find great satisfaction taking on and solving unique challenges that arise in our business and in finding solutions that makes us a better organization and allows us to remain focused on the overall success of the firm.
Name: Daniel S. Kantor
Title: Chief Financial Officer
Company: The S/L/A/M Collaborative Inc.
Company headquarters: Glastonbury
Age: 39
Hometown: Glastonbury
Education/Credentials: B.A., Providence College; MBA, Rensselaer Polytechnic Institute
