Introduction to Chief FInancial Officer (CFO)
A CFO is the senior officer in the top level management responsible for managing the financial decisions of the company. Decisions making in finances include financial planning, creating contingencies and forecasting for financial risks, finance-keeping, budgeting and reporting via accounting statements etc.
Understanding Chief Financial Officer (CFO)
The work of a CFO includes managing finances, in general. Though at a deeper level, CFOs act as treasurers and controllers of money matters, look over the accounting divisions of the company, make significant decisions about the capital structure and decide the funding and finances of the business operations, which is essential for forming an economic strategy.
A CFO also manages the past, present and forecasting financial numbers and reports and making analyses on that basis. Most CFOs across companies report to their CEO and work in accordance with the COO of the company.
Highlights of Chief Financial Officer (CFO)
In some countries, a CFO is the third highest ranking position and the highest financial position in a company. Merely having an accounting background is not enough for this post; it is more suitable for a finance and fundraising based candidate.
They are also representatives of the company’s financial position while managing banking and financial relations and being the face in the investing community.
The four major operations and objectives of a CFO mostly include being a treasurer and controller, while also managing the economic strategy of the company by planning the administrative and financial risk management.
They are also responsible for staffing the accounting and finance department with suitable candidates.
What differs between good and efficient CFOs is their ability to forecast for the long-term and try to propose plans that sustain and equip the business for the future.
The most common qualifications that CFOs have is a masters in accounting and finance fields, along with other professional degrees like CMA or a CPA or an ACCA (differing on the basis of the country) during the course of their career. They usually have an experience of 10+ years.
