fintechview sat down with Alexandra Spyrou, CEO of PS Novus Business Consulting, to discuss how the role of a CFO in a local company with international presence is evolving especially in the financial services and legal sector. Having a 15years of solid experience in a Big Four firm and in the legal industry, as well as being director in the banking industry, has observed the latest trends and shares with us her views, as well as the vision of PS Novus Business Consulting.
Having extensive experience working with a Big Four firm, could you share the main differences between your accounting and law firm experience?
Working with a Big4 audit firm in Cyprus provided me with the opportunity to be involved in numerous projects as the person ‘in-charge’ of the audit of large group of companies operating in a wide-range of industries. These included shipping, construction, and, public companies listed on foreign stock exchanges with worldwide activities in manufacturing and retail. I was also involved in IPOs to the London stock exchange. My duties as manager demanded the application of managerial skills and deep technical knowledge of international audit and accounting standards. Leaving PwC signified me leaving my professional comfort zone. Whilst I was entering a ‘similar’ industry I was also taking on a role with greater challenges and more operating responsibilities than I had previously experienced.
The stereotypical perception of a CFO in a law firm is that you are part of an internal support department that contributes towards effective and efficient operation of the firm, via maximisation of productivity and supporting the strategic goals of the management. However, the position has broader responsibilities and carries an increased risk. These responsibilities include mainly, and among others, leading and monitoring the implementation of business plans, developing financial and tax strategies and, identifying revenue opportunities and investment strategies by continuously exploring economic trends.
There are significant differences in relation to my experience with the two firms. The main ones include the core differences in the position held; a CFO has wider responsibilities but at the same time the flexibility to create more opportunities. An audit manager is involved in the historic events of an organisation and assesses business decisions that have already been taken. Conversely CFO decisions are taken on-the-go and in real-time. You are part of the business decision, you need more managerial skills as well as emotional intelligence to manage crisis. For example, managing the covid-19 effect and the uncertainty that was created for the firm and for our employees. The financial effect is very crucial in the CFO role but additionally, there are many strategic decisions that a CFO should provide advice to the CEO on. For example, whether or not austerity measures should be taken and, if they are, how will that affect the growth of the firm? The role of the department is multi-dimensional and includes, among others, the coordination of other departments within the firm, support for financial services and the designing and implementation of financial strategies.
What are the biggest challenges CFOs are facing today, in your opinion?
The CFO role has expanded beyond financial duties to encompass strategic responsibilities across the company. Today’s CFOs are active participants in their companies’ C-suites, with broad, strategic responsibilities and report directly to CEOs and boards of directors. Their roles have become increasingly complex amid an uncertain financial landscape, resulting in the kind of financial challenges that CFOs 10 years ago could never have imagined they would be facing today. Whether by focusing on strategic partnerships, evaluating technology or working to meet revenue and earnings goals, CFOs are expected to be strategic catalysts of company growth — not just the head of the finance department.
Another challenge, is to unify disparate data to ensure company financial statements are accurate and auditable, while big data analysis, done right, enables CFOs to forecast with more accuracy and makes the entire organization more agile. They’re being challenged to include data from operations, markets, and marketing, to translate that information into actionable intelligence.
During 2022, many businesses embraced technology in new ways and found success driving revenue growth while keeping their workforces connected remotely. Further technology implementations to drive automation are a key challenge for CFOs in 2023 and beyond.
How should CFOs navigate new challenges in 2023?
From Covid-19 and its associated lockdowns to geopolitical crises such as the war in Ukraine, CFOs have faced an avalanche of major shock events since 2019; all have impacted the strategic growth plans and normal working practices. As 2023 begins, many CFOs and Financial advisors will need to take further action to help their companies withstand macroeconomic difficulties such as inflation and higher interest rates in the palls of the pandemic. Covid-19 lockdowns proved to be the most rigorous stress test that most CFOs have ever – and perhaps will ever face. However due to forced quick digital transformation finance departments have learned to work efficiently remotely and retain technology that helps your team to work and collaborate effectively from wherever they choose to work.
While central banks globally attempt to curb inflation by raising interest rates, CFOs are also having to manage expectations of a global recession, the length and depth of which will determine whether a business is successful in the year ahead. It is no doubt going to be a challenging year for both businesses and individuals in light of inflation. Eurozone economies continue to be hit hard by the impact of the war in Ukraine, given their high exposure through energy imports. Growing uncertainty over energy supply, particularly for the coming winter, coupled with weakening global and regional demand, are dragging down the eurozone’s growth outlook.
2023 is the time for an internal review of all the procedures and frameworks and invest in technology. CFOs should continue to focus on the sustainable acceleration of operational efficiencies including those achieved through technology investment in areas such as artificial intelligence (AI), robotics and blockchain. It is not all doom and gloom – the market conditions offer an inflexion point for business leaders. As costs rise, CFOs may instinctively look to retrench and cut expenses, but this can prove counter-productive in the longer term
The role of CFO continues to evolve and can be described as a joggler trying to balance all the circles of a company to achieve its strategies and goals.
What is the role of PS Novus Business consulting in this challenging environment?
PS Novus Business consulting was established after a lot of thinking process with a clear vision to be the trusted partner for its clients, providing innovative, tailored made solutions aiming to business growth and wealth protection. We have found that the market lacks tailor-made CFO service solutions and in the challenging years to come the role of CFO as described above is vital. We are committed to maintaining the highest standards of integrity and professionalism in our relationship with our clients. With a highly personal and hands-on approach, we understand our clients financial situation and provide timely, efficient, solution-oriented, custom plans that strive to build lasting financial independence for our clients and their families.
More specifically with our well established network, we can help the client by assessing the need of his business via a walk through test of its internal control, procedures, framework corporate governance and suggest ways to increase profitability and achieve targets.
Our company is able to establish financial strategy focusing on the detailed short- and long-term strategy, short- and long-Term Forecasting understanding of the current and future capabilities of the company, as well as in-depth analysis of the competitive landscape within the industry, assist with the preparation of budgeting of typically 3 to 5 years forecast to guide the year’s financial decisions while keeping the organization on track to reach its goals, assistance in raising Capital based on our network of financiers, assistance in structuring capital including determining how much financing you need and what mix of debt and equity financing is best for the company’s goals.
Our long experience in the area or restructuring have gave as the competitive advantage to be in the position to renegotiate of vendor contracts, restructuring client contracts, ensuring pricing is aligned with company & industry trends, analyzing commission structures, supply chain management, attributing costs to revenues.
In every recession there are a lot of opportunities however the investors needs to be very careful in their moves. Here comes the financial advisory services that can assist to eliminate risk and move into the correct direction. Investment appraisals are very important since the assessment of an investment project decreases the chances of failure and influences the company’s cost situation and performance while affecting decisions about investing in certain projects. In combination with the above we offer Consulting support provision on behalf of companies seeking to raise capital/Consulting support provision on behalf of investors seeking investment opportunities/Presentation of the company and its business plan to prospective investors.
Why ESG is required?
ESG disclosure helps stakeholders (like investors, creditors, employees, prospective customers, etc.)understand how a company is managing ESG risks and opportunities. Ineffective or misleading ESG disclosures may be considered greenwashing.
The new EU rules will require ESG reporting on a level never seen before, and will capture a whole host of companies that previously were not subject to mandatory nonfinancial reporting requirements, including public and private non-EU companies that meet certain EU-presence thresholds.
Even though ESG disclosures are- mandatory for large companies this will be also necessary for companies seeking alternative ways of finance through investors
Who is who
Alexandra is the CEO of PS Novus Business Consulting Ltd, a company giving bespoke consulting services. She has extensive experience in the finance and banking sector through her 9 year working experience as CFO of the biggest law Firm in Cyprus as well as a key member of the restructuring and insolvency team of the firm. Her experience extends in the development of the Single and Multi Family Office, and through her 15 years of working experience, both in a Big Four firm and in the legal industry, she has gained experience in tax and financial reporting, particularly in companies operating in the construction industry, investment firms and other regulated entities, involved in IPOs in London. She is member of STEP, ICAEW and ICPAC and holds an Advanced Diploma in International Taxation from Chartered Institute of Taxation.
Furthermore, she is a Member of the Board of Directors in Ancoria Bank Limited and Chairwoman of Audit committee and holds the position of an Independent Non-Executive Director in the Board of Directors of ‘GMM Global Money Managers AIFM Ltd. She is a Board member in Cyprus -South East Asia Business Association of CCCI and in Women association of WICCI Cyprus.
She holds a Bachelor degree in Applied Mathematics and Physical Science from National Technical University of Athens as well as a Master’s degree in Construction and Analysis of Supersaturated Designs. She has been qualified as a Chartered Accountant and awarded the FCA accreditation. She is also qualified as a Trust and Estate Practitioner (TEP), as she was awarded in February 2019 the Professional Postgraduate Diploma in Private Wealth Advising. Alexandra is also qualified as ADIT (Advanced Diploma in International Taxation) accredited by the Chartered Institute of Taxation.
Alexandra was as been named as one of the 50 most influential businesswomen in Cyprus, by Mondaq and in 2022 she was given the outstanding leadership award for her contribution in the field of Finance and insurance by Money Conference.
