A Short Explanation of a CFO


Financial controller

A chief financial officer (most often referred to as a “CFO”) is essentially the most senior finance manager in the company, and he/she is responsible for overseeing all of the financial aspects of the company. A CFO usually isn’t in charge of the entire company — he/she usually works in a partnership with or is required to report to other senior management officials, such as the president and/or chief executive officer (CEO) of the company. A CFO usually has the same leverage as a chief operating officer (COO), and works with that person when financial matters mix with management and implementation.

The Responsibilities As far as financial management jobs go, the CFO of a business is at the top of the totem pole. In some cases (usually in smaller companies), the CFO will function as both the manager of finances and operating, resulting the title of chief financial and operating officer (CFOO).

Everything from keeping records of the business’s spending patterns, to creating better strategies for budgeting, to predicting what the company’s finances will look like in the future, are all tasks that a CFO has to take care of (or, he/she has to manage financial analysts and accountants who handle these tasks).

The Training Being a CFO is definitely one of the best corporate finance careers to aim for, but it takes a lot of dedication and planning for a person to get to that place. Like most finance jobs, a CFO should definitely have a Certified Public Accountant (CPA) credential, which is given out by individual state boards.

Besides having plenty of education and experience in less-demanding finance jobs, a CFO also has to possess good management skills. Because more CFOs in modern companies are taking on roles that require more employee management and more planning beyond the company’s finances, someone aiming for a CFO position definitely has to be flexible and knowledgeable enough to implement expertise from other corporate finance careers.

Becoming a CFO in a major business is a pretty lofty ambition for entry-level financial analysts and accountants, but it’s certainly a position that is necessary for a company’s success and one that isn’t likely to go away any time soon.

Leave a Reply