A Chief Financial Officer needs a strong work ethic. They have to juggle multiple duties to keep a business afloat, regardless of the size. In addition, they need to serve as an ethical compass to ensure that no one is breaking the law. A CFO can work for a small startup or for a mid-to-large LLC. They must put in the work, to streamline accounts and optimize cash flow.
What Is A CFO?
To put it simply, a CFO or Chief Financial Officer is the head financial controller of a company. They are the head of senior management for money and provide recommendations on how to allocate funds at board meetings. The job is an executive position, meaning it is at the top tier and requires years of experience.
If you are a CFO, then you are the ones translating numbers for other executives and drafting strategies on how to increase a business’s profitability and where to cut costs. One such example is when the CEO and CFO of USA Today argued about keeping the magazine afloat and making it run through the red, or cutting significant costs to close the newspaper. The CFO had to make his case using hard data.
Changes In The CFO Job
Time and technology have increased responsibilities for a CFO. New technology means that a CFO needs to assess when software goes out of date for a company, including those used to manage finances, and when to either upgrade or switch to a new one.
In addition, there are constant changes in regulations for companies. Poorly managed finances can ruin a business, either with their customers or with the government. In cases for individuals, an accounting firm messing with their finances can lead to penalties or jail time for tax evasion. CFOs and accounting departments must follow the Sarbanes-Oxley Act, which was passed for accurate disclosure of financial information.
Typical CFO Responsibilities
What are some summations of these accounting and finance duties? CFOs are in charge of cash flow management, forecasting, cost-benefit analysis, cost modeling, pricing of products and services, profitability analysis, and budgeting.
Usually, a CFO must be skilled with numbers as well as communication skills. He, she or they must be willing to translate financial data for a board of directors during select meetings and provide sound advice on the strategies to take. The data is complex and is usually collected in real-time. It also updates constantly. Being able to handle those is not easy. That is why a CFO’s daily routine plays an important role in businesses.
CFO’s daily routine is quite remarkable. They often have to balance time with obligations, such as when organizing budget meetings. Balancing the budget is a priority because if you mess up a budget, you may run out of money. That means a business will go under.
Optimize Your Accounting And Finance With DeepSky
DeepSky has spent years providing outsourced accounting services for businesses. Our Financial WingmanTM services ensure that you have a CFO that is always watching your back. You won’t have to worry as we conduct account analysis and save you the costs of hiring in-house employees.
Reach out to us to find out more. A day in the life of our CFO will provide more profit to your business, should you choose to work with DeepSky.