In any business, a chief financial officer is a vital position. The responsibilities of a chief financial officer, also known as a CFO, have a tremendous impact on a company. Whether you’re looking to hire a CFO or revamp your existing CFO’s job description, having an understanding of their typical responsibilities can strengthen your company’s mandate.
CFO as a Strategic Planner
One of the CFO’s most critical responsibilities is to act as a strategist in terms of planning and forecasting for the company’s next moves. If there are any tactical initiatives, a CFO needs to intervene in order to establish measures in line with the company’s goals. This eventually allows a CFO to direct and monitor the implementation of any strategic plans along the way.
As a strategist, the CFO needs to showcase his or her much-needed critical decision-making skills. With the availability of accurate economic data, CFOs can better provide reliable financial forecasts.
CFO as an Administrator in the Financial Operations
Another primary responsibility of a chief financial officer is to oversee the bookkeeping organization in the company in order to supervise its financial records. Being able to track down compliances for certain regulations is crucial in ensuring that the assets of the company are secured.
Furthermore, a CFO’s responsibilities may include acquisitions, employee benefit plans, operational best practices and transaction processing systems. He or she may also take on the responsibility of managing investor relations, human resources, legal tax accounting and treasury departments.
CFO as a Risk Manager
Chief financial officers must have a thorough understanding of a company’s risk profile as well as any legal issues within the industry. A CFO must also have the ability to maintain appropriate insurance coverage for the company and to make sure that the firm abides by any legal or government regulatory requirements.
CFO as a Company Stimulant
A good chief financial officer can catalyze changes within a company and in a macroeconomic context. His or her decision-making and critical-thinking skills have central effects on a company’s path to growth. Expertise must be at the heart of any chief financial officer’s responsibilities.
As a company stimulant for developments and innovations, one of a CFO’s responsibilities is the capacity to act as a consultant for other departments. CFOs may share their ideas on matters such as procurement and cost reductions, which will often lead to the betterment of the company.
A chief financial officer, who has mastered the array of responsibilities required within the role, is an asset to your executive team. Are you looking for a virtual CFO? Contact NuVest Management Services to see how we can help you.