Fri Apr 29, 2022 | | CFO Services

8 Common Responsibilities You Can Expect Out Of Your CFO


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What’s the CFO’s (Chief Financial Officer) role in any organization? While it might generally lean towards the financial side of things, their exact role can differ depending on various factors. These factors can spawn from various things, such as the expectations of the board of directors or even from the CEO, or they can also lie in the business’ goals.

 

That said, if you’re looking to understand what you can expect out of your CFO as a small or medium-sized business, here are the general and common responsibilities to consider:

1. Money Management

A good CFO is able to monitor the company’s financial health constantly. They are the ones that watch out for any signs that the business is heading down the wrong path, and they are the ones that keep an eye on profitability, cash flow, and debt limits, making sure that the organization doesn’t reach its threshold.

2. Managing Risk

A good CFO knows how to manage risks to the business in several ways. They can make sure that the company’s assets are properly invested, and they can also make sure that the company’s financial obligations are always in check. They also make sure that the company is adequately covered by insurance, especially when it comes to employee injuries and potential lawsuits.

3. Budgeting the Income

The CFO will also be responsible for budgeting the incoming income in order to make sure that it’s enough to cover the following financial year’s expenses. It’s their responsibility to balance the amounts and make sure that the company’s revenue covers all of its expenses.

4. Tracking the Expenditure

Along with monitoring the incoming cash flow and revenue, the CFO is also responsible for managing the outgoing cash flow as well. The CFO will not only be responsible for the company’s budget and expenses, but they’ll also be responsible for making sure that the expenditures are less than the income.

5. Keeping the Board in the Loop

The CFO is also responsible for keeping the board of directors up to date with all of the financial decisions the company makes. They are responsible for putting together the quarterly and annual reports for the board, detailing the company’s financial standing throughout the year.

6. Overseeing the Company’s Assets

They play a large role in the company’s assets, including the company’s employees and its physical assets. The CFO is responsible for making sure that their employees are happy and that they are using their assets in the best way possible.

7. Reporting to the Manager

The CFO will also be responsible for reporting to the top-level manager of the organization. In this case, the manager will be the CEO, and they’ll also make reports to the board of directors.

8. Working with the Managers

The CFO will work with the managers of the company in order to monitor the company’s overall performance and the progress made by individual departments. The CFO will also work with the managers in order to make sure that the company’s assets are making the most of the company’s income and that their earnings are covering the expenditures and even exceeding it.

Conclusion

While the duties of a CFO might vary from one business to another, the general duties that they have are outlined above. For example, one CFO might execute most of these duties, while another one might be able to delegate some of their duties to other individuals within the organization.

Overall, the main responsibility of a CFO is to ensure that the business organization is being run in the right way and that all financial goals are being met!

CFO Strategies offers financial controller and CFO services as part-time, onsite, or virtual to help businesses stay on top of their finances and maximize income. If you are looking for CFO-as-a-service for your business, check out what we offer!