The British Chamber of Commerce has reported today (2 October) that the economy is still in the depths of recession. The results of the new Quarterly Economic Survey released today shows that most key Q3 balances are weaker than Q2, with the economy defined as ‘stagnant.’

In summary the Q3 survey results show the following:

• Worsening confidence and investment levels from both manufacturing and services firms
• Despite previously strong reports this year, export growth has dropped back
• Domestic orders in both manufacturing and services are weak and far below pre-recession levels
• Firms are less confident in taking on staff
• Companies are reporting cashflow problems

No-one expects the next few years to be anything but challenging, especially if looking to refinance existing borrowing or to raise new credit. While many FDs and businesses have taken decisive action to mitigate the impact of the downturn and have implemented tough survival tactics that are undoubtedly working, caution remains about the strength and timing of the recovery.

As we move into yet another cycle best described as pre-recovery, we need to take a fresh look at the best tactics to weather the current economy and to thrive in the months ahead.

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The role of the FD has traditionally been seen by many companies as a goalkeeper rather than the star midfielder or centre forward. But more than ever, the role has become far more diverse. Has the FD become more important than the CEO?

It’s no longer just about the finance ledgers and cash flow. These days any FD wrth their salt is an expert in all aspects of the business in which they work.

The key reason for this has been the recession, which has been both a vast challenge and a huge opportunity for FDs to prove their worth. It has changed the way the FD is perceived in the board room.

“With austerity measures still in force across many organisations, FDs are continuing to make decisions every day,” says Paul Sparkes, accounting software product director at IRIS Accounting & Business Solutions. “The recession has given FDs a real opportunity to prove their worth, with many rivalling the authority of the CEO.”

Research conducted by The Real Business Satisfaction Survey in association with ICAEW supports this.

The results show that in 58 per cent of companies, the amount of time discussing finance in the boardroom has increased. And for 43 per cent of respondents, the amount of influence yielded by the FD in the boardroom has increased.

But according to some, it isn't just the FD's role that has increased: other roles have grown in prominence as well, strengthening the board.

"Like all good working democratic boards, important decisions are not taken by individuals in isolation but as a collective, with experts in different areas of the business combining to make the right decisions for the business as a whole,” says Rob Amar, MD of fine foods importer R.H. Amar.

“In today's economic climate, the FD – like the marketing director, MD or chairman – has to have his or her finger on the pulse of what really makes the business tick, and needs to display creativity and agility when faced with sudden difficult challenges such as key currency fluctuations or potential business exposures.”

This expanding role is seeing FDs become responsible for other areas of the business.

“Site viability decisions, disposal of non-core business, contractual negotiations, business development, business relocation, etc – FDs are becoming more influential in other areas of their business,” says John Seaton, financial and commercial director of Nova Laboratories, a manufacturer of trial medicines.

“Their exposure to and understanding of the dynamics involved in their particular sector increases their insight; finding the key drivers for success, differentiating them from competitors and spotting trends in that particular market.”

As FDs successfully make the move into general management, could the FD become a co-CEO?

“It's no surprise that more FDs are becoming CEOs than ever before. The turmoil of the last few years has thrown FDs into the spotlight but they have clearly risen to the challenge,” says IRIS Exchequer's Paul Sparkes. “We're seeing a breed of FDs coming through, who have greater and more varied skill sets and can therefore wield more influence at board level.”

This article originally appeared in Real Business.