When people think about financial jobs, they may not think of them as very exciting positions. Some may even think that people choose to go into these positions purely for the money. While financial jobs to technically revolve around money, they are not all about making money. Financial analysts, financial controllers, financial advisors and accountants all play an integral role in helping individuals manage their finances and keeping a businesses alive and well. While these are all essential roles, the top of the line when it comes to financial jobs is the Chief Financial Officer, or CFO. This critical position within a business is the backbone of a company’s finances and can even make or break a company’s success. The CFO is undoubtedly an important position, but what exactly do they do?
Chief Financial Officer Job Description
- Controller – One of the main responsibilities of the CFO is to look back on the company’s financial history and report on its past successes and failures. Many people are interested in looking back at a company’s finances over time, including shareholders, creditors and employees and board members. This not only informs people about how the company’s finances have changed over the years, but it also gives them idea of where its finances are headed in the future. This can have a major impact on future investments and financial plans going forward.
- Investments – While it is important to know how the company has performed in the past, the CFO also needs to place emphasis on how the company is performing in the present. A big part of this is deciding where to invest the company’s money and maintaining the company’s corporate structure. The internal debt and equity of the company have a big impact on its future success, and the CFO must decide the most appropriate way to allocate financial resources in order to maintain a healthy mix.
- Strategy – Just as the past and present financial standings of a company are important to its overall functioning, planning for the future is also a critical component. The CFO needs to know which areas the company is doing well in and where they are stressed, and they must use this information to make a plan to help continue the strengths and improve the weaknesses.
Being the CFO of a company is neither easy or uneventful. It takes a great deal of attention to detail and a great deal of experience to be able to manage a company’s finances and ensure its success for years to come.