{"id":27641,"date":"2020-01-03T19:00:59","date_gmt":"2020-01-03T13:30:59","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=27641"},"modified":"2023-07-28T12:45:57","modified_gmt":"2023-07-28T07:15:57","slug":"roles-and-responsibilities-of-a-modern-day-cfo","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/roles-and-responsibilities-of-a-modern-day-cfo\/","title":{"rendered":"Chief Financial Officer (CFO) Defined: Role, Responsibilities and Skills"},"content":{"rendered":"<p>CFO also is known as Chief Financial Officer is the senior executive in the company. The Roles of <a href=\"https:\/\/enterslice.com\/cfo-support-services\">CFO<\/a> is to manage and control the financial activities in a company. A CFO&rsquo;s duty revolves around handling <a href=\"https:\/\/enterslice.com\/cash-flow-management\">cash inflows<\/a> and outflows in a company. A CFO is also responsible for drafting the financial planning as well as analyzing the company&rsquo;s financial strengths and weaknesses and proposing corrective actions.&nbsp; <\/p>\n\n\n\n<p>A CFO is someone who manages the finances and <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Accounting&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Accounting is the language of business, serving as the backbone of financial management and decision-making. It involves the systematic recording, analysis, and reporting of financial(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/accounting\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>accounting<\/a> department of a company. The function of the CFO is relatable to that of the controller. They both make sure that the company&rsquo;s finances are accurate, the financial report is authentic and must be completed in a timely manner.&nbsp;&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Does A CFO Do?<\/h2>\n\n\n\n<p>The work of a CFO is defined under three\nmain categories:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"216\" height=\"292\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/What-CFO-Do.png\" alt=\"CFO Work\" class=\"wp-image-27643\"\/><figcaption class=\"wp-element-caption\">CFO Work<\/figcaption><\/figure><\/div>\n\n\n<ul>\n<li><h3>Reporting<\/h3><\/li>\n<\/ul>\n\n\n\n<p>Reporting consumes a lot of CFOs time and particularly is the responsibility of the Controller&rsquo;s group. <a href=\"https:\/\/enterslice.com\/cfo-support-services\">Financial experts<\/a> of the company sit together and prepare all the financial reports of the company required for shareholders, employees, lenders, governments, regulatory bodies. The job of the reporting team is to make sure that all reports must be prepared on time and are accurate in nature.<\/p>\n\n\n\n<ul>\n<li><h3>Liquidity<\/h3><\/li>\n<\/ul>\n\n\n\n<p>The liquidity department makes sure that the company is meeting its financial requirements effectively and there is enough cash flow in the company. Usually treasury groups lookout for the cash in the company. Treasury group is efficient in handling the company&rsquo;s cash balance and working capital, such as accounts payable, account receivable, and inventory. <\/p>\n\n\n\n<ul>\n<li><h3>Return on\nInvestment<\/h3><\/li>\n<\/ul>\n\n\n\n<p>The third most important thing a CFO does is help the company in meeting its financial goals. With the help of a CFO, a company can earn the highest possible risk-adjusted return on assets and return on capital. A CFO must be wise enough to identify the key areas of the company and how to turn those key factors into monetary factors. And this is when the financial planning and analysis team comes forward to help the CFO.<\/p>\n\n\n\n<p><strong><em>A CFO is\nalso accountable for:<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"269\" height=\"445\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/CFO-Works.png\" alt=\"CFO work\" class=\"wp-image-27644\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/CFO-Works.png 269w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/CFO-Works-181x300.png 181w\" sizes=\"(max-width: 269px) 100vw, 269px\"\/><figcaption class=\"wp-element-caption\">CFO work<\/figcaption><\/figure><\/div>\n\n\n<p>With the evolution of businesses and due to their complex and diffused structure- the CFO functions have become widened and evolved into a multi-focused position with the unprecedented need to become more accurate and responsiveness.<\/p>\n\n\n\n<div class=\"shadow4\">Though the duties and responsibilities of a CFO vary as per the industry they work in, but an effective CFO must excel in each of the following practices. <\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Anticipation<\/h3>\n\n\n\n<p><\/p><div class=\"shadow4\">OfficeMax CFO <em>Bruce Bresanko<\/em> said in a statement given to Ernst &amp; Young, <strong>&ldquo;As CFO, I&rsquo;m in a unique position within the organization, at the absolute center of the universe. The only other executive besides me that has that same presence at the center is the CEO&hellip;and I have a unique perspective because of being at that intersection&hellip;and seeing the numbers coming in at all times.&rdquo;<\/strong> <\/div>\n\n\n\n<p>A CFO is not afraid to play with risks and is\nadaptable to the current scenarios where he must be willing to challenge\nconventional thinking when necessary. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Business Integration<\/h3>\n\n\n\n<p>Often CFOs with other business executives find themselves stuck in unproductive and conflicting goals. This lack of alignment or misalignment leads to inefficiency, lack of productivity, high cost and frustration. CFO is counted as one of those people of the organization who has the broadest view of the organization and is best positioned to ensure that the strategic plan, financial reporting, and budgets are fully blended in all aspects of business operations.&nbsp; <\/p>\n\n\n\n<p>Rigid CFOs cannot be entertained in any organization. They have to be flexible as it is their job to define and implement rules and measures along with taking care of the finances of the company. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sustainable Growth Strategy<\/h3>\n\n\n\n<p>Cut-throat competition plays a major role\nin affecting the growth of the company. Increased competition from existing as\nwell as new entrants in the <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a> has made the target of achieving sustainable\ngrowth most pressing.<\/p>\n\n\n\n<p>Modern CFOs has no qualms in breaking the old paradigm of number-crunching to become a strategic asset, and in the process creating real value in the enterprise. As per Sanjay Uppal, CEO of Straits Bridge Advisors, the CFO in this new role is responsible for developing and managing core elements of the business, acting as &ldquo;deputy CEO&rdquo; and board member, and using financial tools to gain strategic advantage.&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Risk Management<\/h3>\n\n\n\n<p>Risk is something unavoidable. Every now and then organizations have to face it. It becomes CFOs responsibility to manage the monetary risks of the company. <em>Kent Potter<\/em>, former CFO of the multinational chemical company LyondellBasell, is blunt about the importance of the CFO and risk management: <\/p>\n\n\n\n<p><\/p><div class=\"shadow4\"><strong>&ldquo;Every company&rsquo;s experience over the last three years highlights a role of the CFO that needs continually to be emphasized: the identification of risk.&rdquo;<\/strong><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">New Metrics<\/h3>\n\n\n\n<p>A skilled CFO knows that his area of\noperation is wide. A CFO has to be competent enough in scenario analysis and\nprojections, as well as in predictive analytics and stress testing if they want\ntheir organization to stand strong in the global competition. &nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p><\/p><div class=\"shadow4\">In the words of <em>Karen de la Torre<\/em>, vice president of Oracle Corporation, <strong>&ldquo;The embedding of business intelligence and predictive analytics in transaction systems, combined with hardware that is 20 times more powerful than even a year ago, allows the finance function to churn large volumes of data at levels of granularity that were previously unattainable.&rdquo;&nbsp; <\/strong><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Closure<\/h2>\n\n\n\n<p>Today&rsquo;s CFO is not limited to handling the financial aspects of the company. In fact, they are the true renaissances who are experts in managing strategies, operations and people. It has become the need of their job to work across inter- and intra-organizational boundaries. The position of a CFO is equally demanding and encompassing, but can be exceptionally rewarding. No one really knows how the future of a CFO will evolve, but it is more likely to broaden.&nbsp; &nbsp; <\/p>\n\n\n\n<p>A CFO performs multiple functions and\noften it is wise to hire an organization that performs CFO services instead of\nhiring a CFO. Feel free to contact us for CFO services.&nbsp; <\/p>\n\n\n\n<p>Also, Read: <a href=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/ebook\/fintech-report-2020.pdf\"><strong>Fintech Report 2019<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CFO also is known as Chief Financial Officer is the senior executive in the company. The Roles of CFO is to manage and control the financial activities in a company. A CFO&rsquo;s duty revolves around handling cash inflows and outflows in a company. A CFO is also responsible for drafting the financial planning as well [&hellip;]<\/p>\n","protected":false},"author":61,"featured_media":27645,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"acf":{"service_id":"219"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Chief Financial Officer (CFO) Defined: Role, Responsibilities and Skills - Enterslice<\/title>\n<meta name=\"description\" content=\"The CFO role has emerged from focusing on compliance and quality control to business planning and process changes, and they are a strategic partner to the CEO.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/roles-and-responsibilities-of-a-modern-day-cfo\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chief Financial Officer (CFO) Defined: Role, Responsibilities and Skills - Enterslice\" \/>\n<meta property=\"og:description\" content=\"The CFO role has emerged from focusing on compliance and quality control to business planning and process changes, and they are a strategic partner to the CEO.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/roles-and-responsibilities-of-a-modern-day-cfo\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-03T13:30:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-28T07:15:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/the-roles-and-responsibilities-of-CFO.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Monisha Chaudhary","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2022\/04\/Monisha-Chaudhary-150x150-1.jpg","authorDescription":"Monisha Chaudhary is a distinguished partner at Enterslice with 10+ years of relevant industry experience in company incorporation, fintech, regulatory compliance, insurtech consulting, and M&amp;A. Her creative thought process pushes her to draft excellent writeups. Besides effortlessly tackling business challenges, she invests her free time in writing blogs and articles.","postViews":728,"readingTime":4,"nextPost":{"id":27649,"slug":"not-accepting-digital-payments-may-lead-to-penalty-of-rs-5000"},"prevPost":{"id":27624,"slug":"mani-app-rbis-new-years-gift-to-visually-impaired-people"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/the-roles-and-responsibilities-of-CFO.jpg","postTerms":"CFO Service","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/27641"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=27641"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/27641\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/27645"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=27641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=27641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=27641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}