Even if you’re considering interviewing for a CFO position yourself, simply regardless of what you’re interested in, CFO Advisory There are things you can do within your company, but it’s important to know what their duties and responsibilities are. Knowing where they stand within the company hierarchy also gives you an idea of what they are responsible for and who they report to.
This guide has it all Duties of the CFO Position It also shows their position within the company hierarchy to better understand who they are and what they do.
What is a Chief Financial Officer?
A company’s CFO is the senior manager who controls all financial aspects of the company. They mainly focus on financial planning and cash flow. They also look at the strengths and weaknesses of the company financially and try to come up with an action plan that the company can improve.
I am also in charge of the accounting department, and the employees in the accounting department report directly to the CFO. They are also tasked with ensuring that all financial reports are accurate and produced on time.
In a company, the CFO is the highest financial position an individual can hold and the third highest position within a company. This means they are a vital part of the company in most departments, not just finance.
Company Hierarchy and CFO
If you’ve heard the term “executive management,” this time it’s the chief financial officer. In addition to the CFO, executive management members include the Chief Executive Officer (CEO), Chief Operating Officer (COO) and Chief Information Officer (CIO).
Before becoming a CFO, you should have extensive experience in the financial sector. You should also have experience leading a team of people. In most cases, CFOs have master’s degrees and have studied extensively in economics or finance.
They often have different financial backgrounds, such as investment banking, statistics, and accounting.
Although the CFO is the primary leader of the company, he must report to everyone in the company and the CEO who heads everything. If the CFO works for a financial company, he may be the highest-ranking person, but in a company that only deals with finance, the CFO is the CEO, and he is the third highest-ranking person in the company, after the COO. .
The CFO also liaises with all senior managers, but does not need to report to them. Teamwork is still important, though, so you’ll need to get along with all the top managers to keep the company running smoothly.
The CFO also works closely with other departments such as marketing. Sometimes I work with my team to work on campaigns and make sure the budget is okay.
CFO VS Accountant
It’s important to remember that a CFO and an accountant are not the same thing. Accountants are only responsible for tax returns and bookkeeping. The CFO is responsible for the overall financial affairs of the company, including the company’s financial future, budgets and financial projections for other parts of the company.
become CFO
Before becoming a CFO, you need to be an experienced manager who can demonstrate experience in a variety of finance-related areas and functions. You must also have a graduate degree in finance or be a certified financial analyst.
Because CFOs are one of the chief executive officers of a company, the position often requires years of experience. This is a prestigious position and often there are many people applying for the position believing they are qualified for it.
CEO and CFO
I mentioned earlier that the CFO reports directly to the CEO. It’s not the same for a CEO to be at the top of a company. However, both positions involve high-level decision-making.
The CFO is usually the sole financial decision maker, but if the decision could affect the entire company, you should discuss everything with the CEO before making a big leap.
Who is under the CFO?
The company reports to the CFO and has many employees who need to report to the CFO. These include positions such as:
- CFO
- Finance manager
- Vice President of Finance
- controller
- accountant
- payroll administrator
- FP&A Manager
- billing specialist
- accountant
- accountant
Essentially, everyone on the finance team reports to the CFO, who leads the finance function.
CFO and Vice President of Finance
The VP of Finance reports to the CFO, but many people mistakenly believe that the CFO is in the same position. The CFO is the highest-ranking member of the finance team, so everyone in the finance department reports to her, including the VP of Finance.
However, in a smaller company, the CFO may be more hands-on and perform more of the tasks that seem to fall under the CFO. But in a large company, the CFO will only be doing administrative work, hosting networking conferences and speaking at events to raise awareness within the company.
The VP of Finance still leads many people in the finance department, but typically leads a small team of just auditors, accountants and financial analysts.
In most cases, a company will only have a VP of Finance if there is a VP of Marketing, VP of Human Resources, or some other VP title.
final thoughts
In the corporate hierarchy, the CFO is usually the third highest overall and the highest when it comes to finance. They are responsible for all aspects of the company’s finances, including budgeting and making sure the company is making the best use of the funds and resources it has.
The CFO is a very important position and it takes hard work to earn this prestigious title.
