What Is a Chief Financial Officer (CFO)?
Every company needs to deal with the challenges of finance if they want to succeed. The Chief Financial Officer or CFO is the executive who is in charge of handling this aspect of the organisation.
In short, the CFO oversees all the company’s financial dealings and works with other executives to plan future policy.
A CFO is similar to a treasurer but not quite the same. Typically, a CFO is a position in larger companies, and so has more responsibilities than just managing cash flow. We’ve put together a guide to the role of the CFO:
What Are The Responsibilities of the CFO?
A CFO is a member of the C-Suite and so one of the most high-ranking members of the company. For most organisations, the CFO will be one of the top three most important executives.
In the financial sector, their role is even more significant. They have various duties which involve managing the budget and developing the organisation’s financial strategy.
The CFO plays a central role in planning how the company will move forward with their endeavours by analysing the strengths and weaknesses of the company. They work with the rest of the senior executive team to ensure the day-to-day running of the company matches the guidelines set out by the Board.
A CFO is also responsible for making sure any reports completed meet compliance standards including the expectations of the 2006 Companies Act. The CFO’s reports influence many decisions in the organisation and so it is essential that they are accurate.
The role of the CFO has evolved over time. Years ago, it was more about balancing the books and calculating whether financial actions were possible. Now, there is more emphasis on working with other members of the leadership team to decide which actions would be best for the company.
What Makes A Good CFO?
First and foremost, the CFO must be an expert in financial matters. They should have a background in finance or economics which will allow them to understand the complicated data involved in financial planning. Most CFOS will have advanced certification such as the Chartered Financial Analyst (CFA) which demonstrates their expertise.
The scale of the CFO means they must have strong leadership skills and be an expert in delegation. Although the CFO takes the credit and responsibility, any success is a combined effort. Many novice executives attempt to ‘do it all’ by themselves, but this only shows inexperience. A good CFO will work with various teams to create a strong financial framework for the organisation.
As a result, the CFO must also be able to communicate their ideas. They work closely with the CEO and COO to develop an organisational strategy so they must convey complex information with ease. It is no good having great financial ideas if they are unable to make it a functioning part of the organisation!
How Can Convene Support Your Financial Framework?
To be a good leader, the CFO has to share their ideas with the whole team. They need to make sure everyone is on the same page. Promoting effective financial policies is a serious long-term commitment that requires efficient communication.
A Board Portal like Convene can improve collaboration within your company. Whatever industry you work in, our all-in-one meeting management software is designed to help managers deliver effective strategies.
From creating an agenda to establishing a strong admin trail, every step of the process should be as smooth as possible. With the right software, the complex task of sustainability planning can be much easier! Our comprehensive features include:
- A Document Library with role-based access to ensure your sensitive documents are protected.
- A built-in Audit Trail, so you can be sure you are compliant with all regulations.
- Integrated Video Conferencing, so you can make the switch from remote to hybrid working seamlessly, whilst still viewing your Board Pack all on one screen.
- Surveys, with the option for anonymity, so you can be sure you are aware of your employees' opinions.
- Accessibility Features, including text-to-voice, which makes us the leading accessible Board Portal.
- Fully GDPR-compliant security including AES 256-bit encryption and ISO 27001 accreditation.