The role of the chief financial officer. What do they do and what are their duties?

The Chief Financial Officer is one of the most important members of the management team in every company. Among other things, they are responsible for ensuring the proper functioning of the financial department, analysing and recommending solutions in the financial area or effective data management. A CFO may be permanently employed by one company or they may cooperate with a company on an outsourcing basis. What else is worth knowing about the position of the CFO?

A Chief Financial Officer (CFO) plays crucial role in supporting the operation of companies on various levels. Except for supervising the finances, their duties also cover providing strategic direction, development possibilities and stability of the company.

The CFO manages the company’s finances by monitoring the flow of money, preparing both budgets and financial forecast, and analysing costs and profits. This way they can provide key information and guidance for strategic financial decision-making.

As a key member of the management team, the CFO brings valuable financial insight into the strategic planning process. They are responsible for the investment evaluation, financial risk analysis and identification of growth opportunities. Their knowledge lets the company adapt to the changing business environment and make effective decisions.

The CFO plays a role in risk management as well. Taking care of minimising the financial risk, they apply relevant procedures or controls. They also monitor financial processes, identify potential risks and propose risk management strategies. This enables the company to work effectively and avoid major loses.

Financial performance analysis is another area where the CFO plays an important role. They analyse financial performance of the company, identify unprofitable areas and points potential savings. They prepare reports and analyses that help the board of directors make optimising costs and increasing profitability decisions.

Collaboration with other departments within the company is crucial for the chief financial officer. The CFO cooperates with sales, marketing, operations and others to provide harmony in financial management and achievement of the company’s goals.

The CFO is also responsible for keeping proper relations with investors, banks and other financial partners. They build trust and represent a sound strategy that attracts investors and enables the company to raise the capital required for the company’s development.

Moreover, the CFO plays an important role in merger and acquisition processes. They run financial analyses, assess the value of potential transactions and negotiate the terms of contracts.  Their knowledge and experience are irreplaceable in making strategic decisions related to the company’s development through market consolidation.

One should not forget about the role the CFO plays in ensuring compliance with financial laws and regulations. They monitor and report changes within the law, ensure compliance with accounting standards and conducts audits to warrant that the company is working in accordance with the legal and ethical requirements.

To sum it up, the CFO plays a key role in supporting the companies’ activity. Their duty is not limited to only managing finances – they also provide strategic guidance, minimise risks, conduct financial performance analysis and build relations with business partners. Thanks to their dedication and professionalism, the company can achieve stability, growth and success on the market.

Main duties of the CFO:

• Ensuring the proper functioning of the financial department,
• Analysis and recommendation of the solutions within the area of finance,
• Effective data management,
• Working on a financial budget,
• Analysis of the company’s current results,
• Taking care of procedures, new solutions implementation and team management,
• Reporting.

Are you looking for a job as a CFO?
Check our job advertisement: https://accrowell.com/praca/dyrektor-finansowy/