The CFO or the Chief Financial Officer of any organization is responsible for financial issues of the concern. It may be related to managing the day to day financial situation or taking any strategic decision. They are considered as the most reliable source in a company from where the right information about the finances of the company can be gathered.
The duties of CFO have evolved over the last 20 years. Earlier everything was not computerized and hence after the computer has taken up the place of merely recording daily accounts, there is a change in duties of the CFO.
Right-hand executive of the CEO
The CEO remains in the charge of running the organization smoothly and the CFO is there to support him doing that successfully. The CFO is not merely a guardian of the financial health of the organization but something beyond that. They are to formulate strategies along with the CEO and implement them successfully for the growth of the concern. they are to share the values and ideas for running the business but must have an alternative perspective to view things in a different way.
A modern day CFO is no more an executive liable for implementing the financial decisions of the board of Directors. They work beyond that scope also. They are the part of the strategic management team of the company and one primary duty of the CFO is to be the strategic advisor mainly because they have the best clear picture of the financial aspects of the business. In order to play the advisory role, they have to be a business executive along with being a financial executive.
The modern day CFO also needs to be a facilitator in the sense that they must be able to facilitate the management with necessary information when required. It is their duty to increase communication and enhance the flow of information in the top management of the business. Their duty no more remains limited to funding and managing the funds of the company.
A CFO is also responsible for balancing the short term pressures while managing company’s cash and profitability position. It is their duty to comply with the regulatory developments like the corporate responsibility, financial reporting, and communication among investors. The duty of a CFO is to manage the financial aspect of the business and ensure that it is undergoing profitability.