What Are The Responsibilities of A Chief Financial Officer?

December 18, 2019

A chief financial officer (CFO) is an important figure within a business. He or she is one of the highest-ranking officials in a company and one responsible for keeping finances afloat. As a result, they are very important. 

Traditionally, a CFO would control all of a company’s finances. They would choose when to introduce new lines of credit or cash flow, as well as when to freeze accounts. Money, costs, and profits would matter the most. With changing technology and expectations, however, you can receive so much more from virtual services. In fact, you deserve more than cold financial data because a CFO job involves helping a company grow. 

Modern CFO Duties

When you are a CFO, you are a leader. The job description requires someone who can manage everyone in financing and accounting, with efficiency and grace. You also need to prepare to take charge of explaining financial reports and more.

A CFO also must prepare to propose financial strategies to improve a business. Explaining, processing and analyzing data is key. A good CFO is responsible for being able to break down financial data for other senior managers to understand, and how to translate them into effective business decisions. 

 

Many CFOs run the risk of becoming too technical. They have to develop their communication skills so that the managers and CEO will understand the numbers. A CFO needs to focus on making sure their strategies are understood. In some cases, they will have to make unpopular recommendations and then defend them to the board of directors. One example may be preventing companies from leasing cars to employees, on the grounds that they are too expensive. Employees would rather have the car, but the CFO makes the company’s health a priority. 

Tying into financial strategies, a CFO must create reports and forecasts for the long-term to help a business grow. When a business runs out of money, they are done and have to close shop. The CFO needs to ensure that this never happens. They need to plan for profit, and for the business to grow. 

Finally, a CFO needs to understand all company procedures within HR and IT and understand how they conglomerate. When you know the processes, you can identify areas of improvement, as well as how to get the most value out of your talent. Decide if training an inexperienced employee would cost less than getting a highly-qualified specialist for a task. 

Generally, you want a CFO with an MBA — with a concentration in accounting or finance– or CPA certification. An MBA program requires a well-rounded individual to develop their business and communication skills. 

Prepare For The Long Term With DeepSky’s Help

DeepSky will help you streamline your financial planning. We have virtual CFOs and a team of experts who will improve your cash flow at a reasonable price. Our goal is to ensure that you have a reliable source of financial information. 

Contact us today to get started. Our management accountant team and Financial WingmanTM program will give you personalized consulting on how to grow and turn a profit. Build your capital structure and know that you are in good hands.

Follow & Like Deepsky 👇🏻