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What Does a CFO Do?

There are many benefits a CFO brings

If you ask any CFO this question, you could be in for a three-hour conversation.  In a nutshell, a CFO is responsible for ALL financial results of a company. 

The core duties of a CFO can be broken down into three major components:

  1. Controllership duties – These make up the backward looking part of a CFO’s job.  Controllership duties hold the CFO responsible for presenting and reporting accurate and timely historical financial information.  Every stakeholder in the company including shareholders, analysts, creditors, employees and other members of management rely on the accuracy and timeliness of this information because many decisions are based on it.
  1. Treasury duties.  The CFO is also responsible for the company’s present financial condition.  They must decide how to invest the company’s money taking into consideration risk and liquidity.  In addition the CFO oversees the capital structure of the company, determining the best mix of debt, equity and internal financing. The capital structure is how a firm finances its overall operations and growth by using different sources of funds.
  1. Strategy and forecasting.  Not only is a CFO responsible for a company’s past and present financial situation, he or she is also an integral part of a company’s financial future.  A CFO must be able to identify and report what areas of a company are most efficient and strategize on how the company can capitalize on this.  For example, the CFO of a retailer must be able to pinpoint the products that are making the most money then use this information to devise strategies on how to improve this in the future.  (see case study) This is the most important aspect of a CFO’s duties because it ensurings the company’s success into the future.
Interested in learning about how CFO Service can drive your business forward? Give us a call at 248.563.7996 or contact us to schedule your complimentary consultation.