CFO Position Description
Second in command at most public and private companies, the CFO (Chief Financial Officer) reports to the CEO and sometimes to the Chairman of the Board. The CFO is responsible for planning, developing, organizing, implementing, directing and evaluating an organization's fiscal performance. The CFO is also in charge of the organization's long-range financial planning, as well as managing the budget process, analysis of budgets, financial reporting and management. The average CFO salary is $175,000, although Fortune 500 CFOs may make in the millions.
Other People Are Reading
-
Investments
-
CFOs are responsible for their organization's investment activities. Although this function varies greatly depending on the size of company, this is always assigned to the CFO. In smaller organizations, this could be confined simply to money-market accounts or uncomplicated interest-bearing accounts. However, in larger companies and organizations, this may include stock-market investing, controlling ownership in other companies, bonds and many other investment vehicles. The CFO designs, plans and implements the investment strategy.
Capitalization and Cash Flow
-
The CFO is in charge of capitalization, borrowing and cash flow. This is a daily function that keeps the organization in business. Organizations often borrow money during slow cash flow periods, and repay these loans during high cash-flow periods. All of the borrowing activities fall under the direction of the CFO. The accounting department is in charge of creating reports on a regular basis, which give the CFO an idea of the company's cash position. They must ensure that they can meet the organization's daily cash needs.
-
Cheif Accountant
-
The CFO is always the chief accountant. They are at the top of the accounting hierarchy. Controllers, corporate controllers and directors of accounting report directly to the CFO. Although the controller manages the accounting staff directly, the CFO is in charge of the accounting policy, strategy and adherence to regulation. Any deviation or infraction to established accounting regulation is the responsibility of the CFO. All finance department also fall under the direction of the CFO. All analysis, trading and derivative activities are established by the CFO.
Budgeting and Financial Strategic Planning
-
Budgeting and financial strategic planning is a responsibility assigned to the CFO. Each department: marketing, sales, production, human resources, IT, procurement, accounting, finance and all others are responsible for creating their own division budget in most companies. However, the CFO is responsible for approving these budgets and incorporating them within the overall budget. The CFO has veto power on all budget issues over individual departments.
Management
-
CFOs must be solid financial managers and supervisors. General accounting, tax, finance and in most companies, HR reports to the CFO. These groups prepare the work however, the CFO is responsible for compliance and regulatory issues. The CFO has several direct reports, including the directors of each of these departments. They are responsible for developing their staff, mentoring the next level of directors and ensuring that the departments are staffed with qualified personnel.
-
