A chief financial officer or CFO is a term that refers to the corporate officer whose primary responsibility is to direct and manage any financial risks of the company or corporation that hires them. The two other titles that also refers to a CFO, is FD which stands for finance director, and CFOO which stands for chief financial and operating officer. Specifically speaking, the chief financial officer handles all of the different financial and accounting matters of a company or corporation.
A chief financial officer has a lot of different responsibilities, and that includes cash flow, company liabilities, company performance, department supervision, financial relationships, raising or finance capital, record control, shareholder relations, budgeting and expense control, and financial obligations. When it comes to cash flow, the CFO is the one who controls the cash flow position, and that typically includes maintaining the integrity of other valuable documents, funds and securities, and understanding the sources and uses of cash within the company. In company liabilities, the CFO is responsible with the act of understanding all of the liabilities of the company or corporation, and that is due to the fact that a company has many statutory and tax obligations, leases, insurance summaries, legal contracts, and hidden liabilities in the form of contingencies. When it comes to department supervision, a CFO is the one who will serve as the supervisor of the various departments within the company, such as the HR, accounting, IT and finance department. In financial relationships, the CFO is the one who maintains and establishes lines of communication with shareholders, financial analysts, and investment bankers. In terms of raising or finance capital, the chief financial officer is the one who establish and execute the programs designed for the provision of capital that is required by the corporation or company. When it comes to record control, the CFO has the responsibility to prepare the required financial reports, to insure that the audits are to be completed in time, to ensure that the maintenance of the appropriate financial records, and to provide insurance coverage. In terms of shareholder relations, the chief financial officer is the one who is responsible in analyzing the corporation shareholder relations procedures, policies and information programs, and that basically includes the annual and the interim reports to the shareholders and the board of directors of the corporation. When it comes to budgeting and expense control, the CFO is responsible in collecting the inputs, comparing the actual performance of the corporation with an estimated budget, and overseeing the budget process. There are absolutely a lot of professionals who works as chief finance officers, and their common services includes strategic planning, capital planning, business restructuring and financial reporting.