A chief financial officer, or CFO, is essentially the person holding the purse strings within an organization, overseeing every aspect of its finances. The CFO will provide financial advice to theand board on, for instance, potential mergers and acquisitions, budgeting and obtaining debt and equity financing. There are significant regulatory responsibilities.
The role has always been a central one to large public companies with multi-million revenues, but is becoming increasingly common in medium-sized and even small firms. Many start-ups, indeed, now hire a chief financial officer when they first start raising capital. CFOs are found in every type of industry and organization.
The job also involves handling functions such as capital budgeting, obtaining debt and equity financing, and managing investor relations. When required, the CFO will also advise on potential mergers and acquisitions targets and initial public offerings. There's a strong element of regulatory compliance to the job, with the CFO required to make sure that the company’s financial reports are accurate, comprehensive and submitted on time.
That, though, is changing, with more medium-sized businesses, and start-ups in particular, introducing the role. A CFO can be instrumental in creating a financial plan aligned with business goals, managing risk, controlling costs and improving cashflow. They can also be extremely influential when a business is, for example, going through a merger, acquisition or IPO.
CFOs generally also pick up professional certifications along the way, for example as Certified Public Accountant, Chartered Accountant, Chartered Financial Analyst, Certified Financial Planner or Certified Management Accountant. CFOs will, of course, need to work their way up to the position, and most are appointed internally. Many start out in the accounts or finance departments as staff accountants or tax preparers.