What does the CFO do?

A chief financial officer or known as the CFO (from English Chief Financial Officer) is an executive who is in charge of monitor cash flow, planning, and other financial activities within an organization. If you want to work in a top management position and have studied accounting or finance, striving to become a CFO could be a possible dream.

The CFO of a company has primary responsibility for planning, implementation, management and execution of all financial activities of a company, including business planning, budgeting, forecasting and negotiations. The CFO job description should also extend to obtaining and maintaining investor relations and partnership compliance.

Another of the main functions of a CFO is perform administrative operations, risk management and financial within an organization. While they answer to the president, they are the executives who have the most say when it comes to the company's investments and how the organization will manage revenue and operating costs.

The ultimate goal is for the CFO develop strategies and different control systems that preserve the assets and income of the company.

Responsibilities of the CFO

As part of an executive management team, the CFO will interact with various members of a company, both senior and junior. The CFO works very long days and performs a wide range of tasks on a daily basis. Depending on the financial condition of the company or the seasona, executives can work all day and into the night.

A job description for these professionals should include:

• Provide leadership, direction and management of the finance and accounting team.
• Provide strategic recommendations to the CEO / president and members of the executive management team.
• Manage the financial forecasting and budgeting processes, and supervise the preparation of all financial reports.
• Advice on long-term business and financial planning.
• Establish and develop relationships with senior management and external partners and stakeholders.
• Review of all formal procedures related to finance, human resources and the technology area.
• Monitoring of strategic business plans.
• Development of financial strategy.
• Development of fiscal strategies to reduce obligations.
• Management of budgets from department to department.
• Meet with managers and executives for decision making.
• Management of the accounting, legal, tax and treasury departments.
• Implementation and supervision of processing systems.
• Oversee the employee benefits system.
• Review of financial reports.
• Report the results to the board.
• Invest.
• Monitoring of legal problems that could affect the company.
• Make sure the company complies with all regulations.
• Maintain insurance to protect the organization against risks.

Differences between CEO and CFO

In general, CEOs are responsible for leading the organization towards success general (including increased revenue, market share, brand awareness, etc.). While, the CFO is responsible for ensuring that the organization has the resources adequate financial resources to achieve your goals.

Both are high-ranking officials who have a significant impact on the overall management and direction of the organization.

Typically, CEOs report to the board of directors, a group of internal and external members who oversee large-scale management and decision-making in the organization. The CEO is generally an internal member (or internal director) and can be the chairman or president of the board.

How to become a CFO

The CFO's role is very importantTherefore, a high level of experience is expected for anyone applying for this role. A bachelor's degree in the following is expected for this role:

• Accounting
• Finance or economics
• An MBA or CPA is also highly desirable.

Is essential have at least 10 years of experience in the financial industry and in managing a team, with examples of when they have demonstrated excellence in the workplace. A finance or finance director must show a cohesive capacity in interpersonal and communication skills, both verbal and written.

They must be able to interact with staff at all levels of the organization and exercise good judgment.

If you believe that you can balance your responsibilities and that you can remain responsible for financial operations, you should take these steps to become a CFO.

1. First, you will need to meet the educational requirements to gain the knowledge and learn the methodologies taught in school.
2. If you don't have a degree, you can start by studying for a bachelor's degree in an area like finance, accounting, or business.
3. After earning your bachelor's degree, you can move on to more advanced studies as getting a master's or MBA is almost a must. You will also need to gain experience in accounting or finance to build your reputation.

While it is not easy get a CFO position, it is better to go first to the openings through a smaller company.