How Many Hats Does Your CFO Wear?
Being a company’s CFO might come with the flashy title, but it also comes with significant responsibilities. Sure, every employee has their own key responsibilities (if they didn’t, there wouldn’t be a reason to have them on payroll), but CFO responsibilities directly impact the success and continued success of a company.
Without a skilled CFO steering the helm of the company’s financial ship, there’s a good chance that company will go the way of the Titanic. Learn about four key CFO responsibilities to get a better idea of just how integral these individuals are to their company’s success.
A CFO has a great deal of accountability that rests on their shoulders. Many CFOs are responsible for some or all of their company’s controller duties. These chief accounting duties can include any or all of the following:
- Accurate reporting
- Financial statements
- General ledger
- Cost accounting
- Accounts payable and receivable
- Tax compliance
- Various analyses
The CFO is responsible for relaying all accounting and financial matters to the company’s board of directors. A CFO is the key financial advisor in company management, and their knowledge and acumen influences key business decisions.
Plans For The Company’s Future
In companies big and small, CFOs help shape the strategic vision for a company’s long-term success. Because CFOs have an intimate look into a company’s finances, they are an integral part of developing long-term strategies for growth. They can help spot areas of efficiency and, more importantly, inefficiency that can be improved upon for increased profit and revenue. CFOs have a strong background in markets and general economic outlook, which can help them forecast for a company’s future, which is one of the key CFO responsibilities.
Manages Projects That Can Make A Significant Financial Impact
Because the CFO holds the top spot in the accounting department’s hierarchy, they oversee and manage those projects that net the most significant financial impact for the company. With their background in qualitative and quantitative analyses, they have keen insight and knowledge into matters such as the ins and outs of a company’s overall budget. And again, because they have the most intimate look into a company’s finances, they are able to astutely provide recommendations that will give their employer the best and most competitive financial edge, leading to long-term financial success.
Relationships with Outside Financial Resources
A CFO’s job is not only internal. They must also leave the four walls of their office in order to cultivate relationships with outside financial resources. They are the primary point of contact for a company’s bank and other financial outlets that could have a resounding effect on the company’s financial health and future.
Burchard & Associates is an executive search firm specialized in accounting and finance recruiting across all business sectors, including manufacturing, retail, wholesale/distribution, healthcare, financial services, and more.