With some CFOs receiving over 100 million dollars in 2018 alone, it is no wonder it is a sought-after career in the USA. But do you understand what the role of a CFO is in a modern business?
This article will help explain what part the CFO role plays in a modern company. By the end, you should have a list of chief financial officer responsibilities and how they fit in a company.
What Is the Role of a CFO?
A CFO is a member of the executive team of a company. They are responsible for the company’s financial situation and should be able to both manage and report on its status at all times.
You can break down the CFO’s role into three essential components that they focus on while acting out their role. You can summarize these components as involving the company’s past, present, and future:
Controllership (Past): This part of the CFO’s job involves reporting on past financial history. They are responsible for researching and presenting the financial information of the company. They do this both within the company as well as out with to external individuals.
Shareholders tend to make use of the CFO in this position to get a good idea of how the company has trended on a financial level.
Treasury (Present): The CFO handles the company’s wealth as it currently stands. They are able to sign off or veto expenditures and use the company’s wealth to invest in specific projects as they see fit.
If the company needs some level of financing or is in debt, the CFO is the person who manages this. They should be able to answer questions on this at any time.
Economic Strategy (Future): The CFO must look at the future of their industry, the company, and the world. Using this information, they are responsible for planning the company’s financial strategy. They do this to attempt to enable the greatest amount of financial growth for the company and to benefit the company’s shareholders.
Do Any Companies Offer CFO Services?
Several accounting companies can offer services that relate to a CFO’s duty. They can either act as a stopgap for a full-time CFO by performing many of their duties, or they can assist a company in hiring a CFO as needed.
Companies that offer CFO solutions such as this are usually very well-connected. They can even act as emergency financial advisors or accountants if a previous CFO is all-of-a-sudden not available for any reason.
Where Can I Find Out More?
Now that you understand more about the role of a CFO, you should be able to move forward and hire for the CFO role in your company. If you still have questions, though, we would be happy to answer them.
Our specialists are available to talk to you about your accounting needs and provide CFO solutions that match your needs. So, please schedule a consultation and chat with us to get started.