What is CFO?
CFO stands for Chief Financial Officer and it corresponds to a position that entails financial-related tasks and activities in a particular organization or company. When a person is given the title of CFO, he/she is typically a senior officer that is tasked to deal with all financial matters of his/her company. Financial goals and planning are typically set by a company’s Chief Financial Officer along with administration and/or management of the company’s cash flow, financial investments, concerns, and future plans. A CFO basically is the person in-charge of the financial activities of the company that he/she belongs to. In most cases, the CFO reports to a President or the Chief Executive Officer of a particular company. It is also common for the CFO to submit financial reports to a company’s board members or investors. Under a smaller scale, CFOs or Chief Financial Officers, assume the function of treasurers or financial comptrollers in terms of monitoring all financial transactions of a given company.
Financial planning is the most important task of a Chief Financial Officer. Knowing all the financial activities of his/her company, an effective CFO will be able to make financial forecasts and create financial strategies that will reap rewards and benefits. It is the CFO’s main duty to have a financial program implemented that maximizes cash flow, lowers cost, and ultimately increase profits for the benefit of stakeholders and other company investors. All these financial duties are done of course without having to sacrifice the other aspects and units of a particular company including operations and services for example.
It is typical for a CFO to monitor and/or manage the company’s accounting and finance units especially in terms of expenses and investments. The CFO may not necessarily be the one to generate the financial details and reports but may have several accounting and finance officers to offer him details for financial review. Anything that causes a drain in the company’s resources may be reviewed or evaluated while possible new ventures may also be studied in order to improve profitability and financial stability.