All About the Services and Responsibilities Offered by a Chief Financial Officer 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. 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. To be more specific, a CFO handles the different types of accounting and financial matters of a corporation or company. The common responsibilities of a chief financial officer or CFO to the corporations or companies that hires their services includes financial obligations, cash flow, company liabilities, company performance, department supervision, financial relationships, raising or finance capital, record control, shareholder relations, and budgeting and expense control. 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. In department supervision, the CFO will serve as the supervisor of IT, HR, finance and accounting department of the company. In terms of financial relationships, the chief financial officer is responsible in maintaining and establishing the lines of communication with financial analysts, investment bankers, and shareholders. 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 record control, the CFO is responsible in insuring that audits are to be completed in time, in preparing required financial reports, in providing insurance coverage, and in ensuring the maintenance of the appropriate financial records. 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. In budgeting and expense control, the CFO is the one who oversees the budget process, the one who compares the actual performance of the company with an estimated budget, and the one who collects the inputs. There are a lot of chief finance officers all over the world, and the common services they tend to offer to their clients includes capital planning, business restructuring, financial reporting and strategic planning.
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