What is a Chief Financial Officer? The Chief Financial Officer is the person who is in charge of developing fiscal policies that adhere to both company goals as well as applicable state and federal laws. This person will head up the accounting department throughout the company to ensure that there is always enough money on hand to keep the company running and money available for expansion and other projects.
The CFO Plans For The Future
It is no secret that the business world changes rapidly. One bad product or one expensive lawsuit could cripple even the largest of companies. Therefore, the Chief Financial Officer is expected to take into account the potential cost of a litigation or the cost of scrapping a product if something should occur during production that would put customers or anyone else at jeopardy. A Chief Financial Officer may also look at the way that the business operates currently and suggest ways where money could be saved or where money may be better spent.
The CFO Acts As A Treasurer
According to Investopedia, the Chief Financial Officer may act as the company treasurer and make sure that all of the company’s money is accounted for. He or she will supervise the creation of and verify the accuracy of any financial statements that the company sends to the government or releases to the public. If a financial statement is incorrect, it may be assumed that the someone is stealing. That could lead to a government investigation and other unwanted attention that could harm the company. Therefore, the Chief Financial Officer must be detail oriented and have a strong eye when it comes to finding and correcting discrepancies on long and complicated documents.
What Does It Take To Become A CFO?
A Chief Financial Officer will have completed an undergraduate degree program and will either have a graduate degree or be in the process of completing that degree before ascending to the position. It may be easier for those who are good with numbers to take on such a role in a smaller company where the management structure may not be as defined. However, someone who is named to the top financial management position in a company is going to have several years of experience as an accountant or in a related financial field.
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Where Can A CFO Find Work?
A Chief Financial Officer can find work in just about any sector of the economy. In recent years, the federal government has created CFO positions in each government agency in an effort to increase financial oversight of how public funds are used. This provides those who are interested in numbers and public service to combine their two passions and have a fulfilling career.
What is a Chief Financial Officer? Ultimately, this is the person who is responsible for making sure that the financial future of the company is secure. While it may take many years to attain the position, it is a job that will always be in demand, due to corporate governance laws and other oversight measures that are designed to protect consumers and shareholders.