What Does a CFO Do?
Chief financial officers (CFOs) do various tasks, such as acting as financial advisors for CEOs and outlining high-level plans and roadmaps to help your organization achieve financial goals.
But what do CFOs do? While it varies between industries, the top two priorities of CFOs include:
- Finding blind spots in an organization’s financials. This includes addressing the financial implications and requirements of new business initiatives and revenue goals.
- Improving capital planning and acquisition strategies. CFOs are future-oriented. If the current cash flow doesn’t allow for the desired growth of a company, CFOs work to improve efficiencies and develop new revenue opportunities.
What Are the Responsibilities of a CFO?
CFO responsibilities may include any of the following duties:
- Advising the CEO and other executives about the financial implications of business decisions.
- Helping organizations develop an ROI mindset
- Analyzing company financials
- Recommending new considerations for financial opportunities
- Communicating with shareholders and establishing realistic expectations for the company’s financial performance
- Managing account teams, including accountants, controllers, tax professionals, and others
- Overseeing updates to financial systems
- Participating in the hiring process for new finance employees
Have CFO Responsibilities Changed Over the Years?
Yes, CFO responsibilities have changed a lot over the past few years. Many industries struggle with consistent financial performance because of dynamic markets, meaning CFOs are on the frontlines to ensure those financials stay intact.
New technologies, such as payroll automation and automatic reporting, have also helped CFOs become more efficient in their roles, leaving more time for financial strategy and collaboration with other finance employees.