Full form of CFO
The full form of a CFO is a Chief Financial Officer. A CFO is a business executive primarily responsible for managing an organization's finances, such as financial risk management, financial planning, financial analysis, and record keeping. The CFO is also responsible for data oversight in other areas.
In the UK, the standard name for a finance director is FD (Financial Director). The CFO generally reports to the CEO (Chief Executive Officer) and the board of directors and may have a seat on the board. The CFO leads the finance department and is the company's chief financial officer.
Eligibility criteria to become CFO
- Various big enterprise's CFOs have professional credentials such as a Master of Science in Accounting or Finance, an MBA (Master in Business Administration), or a Certified Public Accountant with a CFA or accounting background.
- A finance unit usually includes professional accountants such as Certified Public Accountants, CA (Chartered Accountants), Chartered Certified Accountants & Certified Management Accountants.
Primary duties of CFO
- Execute and design the company’s financial strategy
- Review the economic strengths and weaknesses of the company and properly execute the appropriate actions.
- Capital structure & financial operations responsibilities
- Analyze the financial reports
- Tax & financial planning approaches
- Reporting financial information to the chief executive officer
- Submit financial reports to the board of directors.
Key Responsibilities of a CFO
As a member of an executive management team, the chief financial officer interacts with all the organization's officials. The primary responsibilities of a CFO are listed below.
- A sincere CFO provides the accounting team with direction, management, and leadership.
- The chief financial officer provides financial strategies to the company's board of directors.
- A CFO monitors the financial reports and reviews IT and HR-related procedures.
- CFO remains responsible for establishing a healthy corporate relationship with the stakeholders, senior management, and external partners.
Working Area of a CFO
The main work of a CFO in a company is to handle all financial matters. Monitors financial growth and creates new strategies to increase profit rates. It organizes the relevant information and plans the next course of action according to the current result. Since the full meaning of CFO speaks of the top financial designation of the company, the person has to handle heavy financial ups and downs.
Finally, there is no doubt that the job of a CFO is demanding and only people with excellent skills and appropriate education can opt for the position of CFO. Without proper foresight and experience, the CFO can experience unavoidable danger to the company.