CFO is an abbreviated term that stands for chief financial officer, and it is defined as a corporate officer who is primarily responsible in managing any financial risks of the corporation or company. A chief financial officer can also be called as a finance director or FD, or a chief financial and operating officer or CFOO. To be more specific, a CFO handles the different types of accounting and financial matters of a corporation or company.
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. In terms of cash flow, it is basically the responsibility of the chief financial officer to control the cash flow position of the corporation, including maintaining the integrity of securities, funds and any other valuable documents; and understanding the uses and sources of cash. When it comes to company liabilities, the CFO is typically responsible with the process of understanding all the different kinds of liabilities within the corporation or company. 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. When it comes to financial relationships, the CFO is basically responsible in establishing and maintaining the lines of communication of the shareholders, investment bankers and financial analysts of the corporation or company. 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. In terms of record control, the chief financial officer is basically the one who is responsible in in preparing the required financial reports, in providing insurance coverage, in ensuring the maintenance of the appropriate financial records, and in insuring that audits are to be completed in time. When it comes to the corporation shareholder relations, the CFO is responsible in analyzing the procedures, information programs and policies in the corporation shareholder relations, and that typically includes the interim and the annual reports of the corporation’s board of directors and shareholders. 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 definitely a lot of CFOs in every parts of the world, and some of their common services includes business restructuring, financial reporting, strategic planning, and capital planning.