As the name suggests, the Chief Financial Officer is responsible for the financial matters of a corporation or business enterprise. In essence, they handle anything and everything regarding the financial matters of their company. As such, they are responsible for the financial security and health of the company. Their responsibilities and the job description are usually the same as those of a financial director (FD), a title usually used in the United Kingdom and many other commonwealth nations.
In most cases, the CFO answers to the Chief Executive Officer and the board of the company. Additionally, he or she may be answerable to the Chief Operating Officer, especially with regards to implementing the company’s growth plans. Although the specific responsibility of a CFO may differ from one company to another, their general job description is similar. So what are CFO responsibilities?
#1. Economic Forecasting and Strategy Development Responsibilities – The CFO is usually charged with the responsibility of developing strategies that the company will follow. In the same light, he or she is responsible for forecasting various aspects of the business. The combination of these responsibilities is aimed at ensuring the company performs optimally, not only in current times but also into the future.
As such, he or she has to analyze the performance of various business models, with the intention of iterating to always accrue the highest amount of benefits not only now but also in the future.
#2. Department Supervision/Controllership Responsibilities – The CFO is also charged with the responsibility of controlling various department in the company. To this end, CFOs usually head the Finance and Accounting departments of their companies. Additionally, they may also play supervising roles for various departments such as Human Resources and the IT departments.
With regards to the Accounting and finance departments, CFOs are responsible for the development of the accounting policies and procedures and assigning responsibility to the various departmental players. CFOs are also the custodian of the financial records. They are responsible for performance reporting and availing such reports in a timely manner.
#3. Treasury Duties – Another responsibility of a CFO is the financial health of the company, which can be dubbed as the treasury duties of the company. Treasury duties include the assessment of risks and its mitigation, cash flow, the company’s capital structure, and any issue surrounding the debt and equity structure of his or her company.
As you can appreciate, CFOs do play a huge role in the running of the company. Thus they play a role in decision-making at the executive level, while at the same time ensuring the company maintains the best business practices that also conform to the existing regulations.
Ideal Qualification Of CFO
For a CFO to effectively perform the aforementioned duties with immense efficiency, he or she must have the requisites qualifications (and experience). These include Masters of Business Administration, a background in accounting (such as being a Certified Public Accounting), or equivalent business experience with (10 years of experience).
