Whether you are looking for a CFO job interview yourself or just want to know what to expect Tips for the CFO can do in the company, it is important to know the duties and responsibilities they have. Knowing the role they play in the company’s leadership can also give you an idea of the things they manage and who they report to.
This book will have everything CFO duties and their place in the corporate hierarchy to give you a better idea of who they are and what they do.
What is a Chief Financial Officer?
A CFO in a company is a person who is the chief executive officer who manages all financial aspects of the company. They focus mainly on financial planning and financial management. They also look at the company’s strengths and weaknesses in terms of finances, and try to make plans that can change the company.
He also oversees the accounting department, and staff in the accounting department will report to the CFO. They are also tasked with ensuring that all financial reports are accurate and timely.
In a company, the CFO is the highest financial position that a person can hold, and is the third highest in the company. This means that it is an important part of the company in many departments, not just finance.
The Company Hierarchy is the CFO
If you’ve heard of the term “C suite,” the chief financial officer is part of this era. Members of the C-suite include the Chief Executive Officer (CEO), Chief Operating Officer (COO), and Chief Information Officer (CIO), as well as the CFO.
Before a person can become a CFO, they must have a lot of experience in the financial sector. They should also have experience leading a group of people. Usually, the CFO has a master’s degree, and has studied economics or finance.
They usually have a background in various fields of finance, including investment banking, statistics, or accounting.
Although the CFO is the top leader in the company, he must report to the CEO, who is the head of everyone and everything in the company. If the CFO works for a financial company, he may be the most senior person, but in companies with only cash, they are the third highest position in the company behind the CEO and COO.
The CFO also works with all senior managers, but does not need to report to them. However, working together is still important, so they must cooperate with all top managers for the success of the company.
The CFO also works closely with other departments, including sales. They may also work with the team on campaigns to ensure budgets are in order.
CFOs VS Accountants
It is important to remember that CFOs and accountants are not the same thing. Accountants only perform tasks such as filing taxes and bookkeeping. The CFO oversees the company’s overall finances, including the company’s financial future and financial forecasts for the budget and other aspects of the company.
Being a CFO
Before you can become a CFO, you must be a manager with knowledge that will ensure that you have a wide range of financial and operational activities. You also need a graduate degree in finance, or you must be a Chartered Financial Analyst.
A CFO is one of the company’s top managers, so getting to that position often takes years. It is a prestigious position, and there are usually many applicants for the job, all of whom believe they are qualified for the job.
CEOs and CFOs
We have already mentioned that the CFO reports to the CEO. It’s not the same thing as the CEO at the top of the company. However, all these positions are involved in high-level decisions.
The CFO usually makes financial decisions on his own, but when a decision affects the entire company, he must discuss everything with the CEO before taking the plunge.
Who is Under the CFO?
There are many employees in the company under the CFO who have to report to them. This includes roles such as:
- Financial Officers
- Director of Finance
- Vice President of Finance
- The rulers
- Treasurers
- Paymasters
- FP&A managers
- Paying experts
- Accountants
- Treasurers
Basically, everyone in the finance team goes to the CFO since he is the head of the finance department.
CFO and VP of Finance
The Vice President of Finance is subordinate to the CFO, although many people mistakenly believe that they have the same role. Since the CFO is the most senior member of the finance team, everyone in the finance department is under them, including the VP of Finance.
In smaller companies, however, the CFO can be very helpful, and can perform many of the duties that would otherwise appear under them. However, in large companies, the CFO only performs administrative tasks, and will conduct many communication meetings and speaking engagements to inform the company.
The VP of Finance still leads most of the people in the finance department, but leads a smaller team of accountants, bookkeepers, and financial professionals.
Often, a company only has a VP of Finance if it also has a VP of Marketing, VP of Human Resources, or other VP positions.
Final Thoughts
In corporate governance, the CFO is often the third-highest position, the highest position in finance. They oversee all aspects of the company’s finances, including budgeting and making sure the company is doing the best it can with its money and resources.
CFO is a very important position, and one should strive to get this high position.