Are you curious about the responsibilities of a chief financial officer? A CFO is one of the highest-ranking employees in an organization, and they wield a lot of power. But how do they contribute to a company’s stability and growth?
1. Manage the Company’s Finances
What is the role of a CFO? You can think of the CFO as the finance director at an organization. They are in charge of creating and overseeing budgets and managing the financial picture.
As a result, a CFO needs to be well-versed in the operations of a company. They’ll want to know about the goals and needs of different departments, as well as what marketing budgets and travel expenses will look like.
2. Help Build Assets
Ultimately, any business wants to grow and thrive. And a CFO’s careful attention to investments and assets is essential for growth to happen. A CFO wants to see long-term growth in the company, so they work with other members of the organization to plan for strong returns on investments.
While it’s impossible to predict how the markets will fluctuate and what events will impact business, a CFO’s goal is to create the most accurate forecast possible to help keep the cash flowing.
3. A CFO Assesses Reports
What is a CFO in charge of? They’re also in charge of evaluating reports from departments within the company. A CFO wants to help position a company for success, so they’ll need to look at budgetary reports and make adjustments as needed.
A good CFO will spend time reviewing historical reports to look for ways to trim expenses and direct money toward areas of growth. They’ll also meet with key stakeholders and employees to keep reporting current and accurate.
4. Establish Business Partnerships
Sue from CFO On Call says “When it comes to an exploration of what a CFO is and does, you should know that CFOs also work with vendors and other business contacts. They can serve as liaisons between the company and investors, or work with other community groups to create connections.”
CFOs are busy looking at how they can partner with the right people to build the business, so they’ll also be involved in many hiring processes — especially ones related to the finance department.
5. Help Top Leaders in a Company Develop Strategies
A CEO is the head of the organization and sits above the CFO in a company hierarchy. But individuals in these two positions work together a lot to craft a long-term strategic vision for the company.
A CFO also may be involved with supplying reports to inform strategic moves at board meetings. Or they will work with other top leaders in a company to establish the best financial plan.
Understand the Role
A CFO is an integral part of an organization since they oversee the financial picture. Their goal is to ensure that a business builds on its success. And they provide a critical voice for other stakeholders in planning strategic operations.
If your business needs the assistance of a CFO, contact us and our CFO On-Call can help!