Gaining an insight into job responsibilities of a Chief Financial Officer

The CFO is a corporate officer responsible for handling finances of an organisation. From financial planning and record-keeping to financial reporting to higher management, he manages all this and more. He supervises the financial unit and operates as the chief financial spokesperson of the company. 

The typical day-to-day job responsibilities of a Chief Financial Officer may vary. However, the three basic areas include the following.

Accounting and reporting

The Chief Financial Officer is responsible for maintaining accurate financial records and preparing financial reports on a company's financial status. When working for a small company, the CFO handles basic accounting duties and generates monthly and annual financial reports. Contrary to this, his duties shift toward analysis and management while working in a larger corporation. The actual accounting and reporting is carried out by the divisions and the CFO reviews them to analyse the corporation's financial status. CFOs working in larger organisations usually submit an annual financial report to the board of directors of the organisation. 

Management and budgeting

In a smaller company, the CFO handles matters such as cash flow, salaries, budgeting, and investments. His other job responsibilities include signing employee paychecks. On the contrary, the CFO plays more of an administrative role in terms of management and budgeting in a larger corporation. He decides on pay scales and allocates resources on the basis of reports from division manager. CFOs often seek opportunities for capital investment for their organisations.

Strategy and planning

In all types and sizes of companies, Chief Financial Officers are partnering with CEOs as well as corporate boards to assist with long-term strategic planning. They assess productivity and look for opportunities to develop areas of efficiency in order to improve profitability. They are consulted for their knowledge of markets, funding sources, as well as general economic outlook to help organisations with wise decision making when it comes to analysing risks and allocating resources. 

The qualification for a CFO can vary according to the organisation. Given that they have to undertake financial management responsibilities, most of them are expected to have training as well as experience in accounting or finance. Larger organisations require a CFO to have MBA and/or advanced degree in finance, accounting or economics.

In a nut shell, the Chief Financial Officer has an important responsibility to help organisations and companies to grow. Simply put, he keeps a company going strong.

Proactive CFOs offers both CFO and virtual CFO services to improve financial performance of businesses. The professionals help the business owners to achieve efficiency in operations and set and monitor key performance indicators.