Top 10 responsibilities of a Financial Director (CFO)? – 2B TALENT SERVICES TRADING COMPANY LIMITED

Top 10 responsibilities of a Financial Director (CFO)?

Top 10 responsibilities of a Financial Director (CFO)?

The Chief Financial Officer (CFO) is responsible to the Board of Directors for all matters relating to accounting and finance. CFOs must set goals, policies, procedures, plans and implement policies, plans that ensure the company’s financial accounting structure is stable. Let’s look at the role of CFO and the top 10 responsibilities that each CFO must grasp:

1. Manage the flow of cash flow

CFO’s job is to control the flow of cash flows in the company, understand the cash resources, as well as know how to use cash, maintain the integrity of capital, vouchers and other valuable documents. CFOs are entitled to withhold or pay money according to company documents. CFO’s responsibilities include the authority to establish accounting policies and procedures for credit and purchasing, bill payment and other financial obligations. Cash is the “king” and controlling cash flow is the most important CFO work in the company.

2. Debt management

After the cash flow problem, knowing & understanding all of the company’s debts is part of the CFO’s responsibility. A company will have many legal contracts, statutory and tax obligations, contingent liabilities in the form of contingencies, leases, or insurance summaries, and profits from loans or expectations from the board. Within the company, is there anyone other than CFO capable of taking on this legal responsibility?

3. Business efficiency

CFOs must understand the company’s business model in order to create customer value and find ways to convert performance indicators into performance measures. CFO will evaluate the business performance of the company through the development and implementation of a strategic management and planning system using the Balanced Scorecard and report the results of the financial statements to evaluate the actual financial performance. and financial planning of the company.

4. Monitoring the activities of the departments

For small and medium-sized businesses, CFO is the supervisor of Accounting, Finance, Human Resources and IT. For large-scale businesses, the CFO’s responsibility can only cover Accounting and Finance. Regardless of the responsibilities, the CFO will oversee and strongly support the company’s accounting and financial functions through the use of job descriptions, policies and procedures, and methods. automatically control documents according to their profession.

5. Building financial “relationships”

CFOs need to establish and maintain close relationships with investment banks, financial analysts and shareholders and the Chief Executive Officer. CFOs must manage bank arrangements and loan agreements and maintain appropriate funds for the company’s existing loans from commercial banks and other lenders. In addition, the CFO manages the company’s investment capital and plans to select preferred stocks.

6. Working capital management & Capital mobilization

We often assume that finance is one of the Chief Financial Officer’s responsibilities. As expected. The CFO will establish and implement strategies for managing the capital required by the company, including negotiation, administration & debt collection, and maintenance of financial arrangements to ensure the required working capital. CFOs need to understand the company’s long-term plans, evaluate the underlying financial requirements of these plans, and develop financial requirements in different ways.

7. Fulfill financial obligations

CFOs must ratify and enforce agreements relating to financial obligations such as contracts for materials, assets and IT services, or financial commitment requirements.

8. Financial control

CFOs are responsible for the financial aspects of all company transactions including real estate bidding, leases & sales. The CFO also ensures the maintenance of appropriate financial records, prepares necessary financial statements, ensures that audits are completed on time and closed in accordance with applicable laws. One of the Chief Financial Officer’s responsibilities is to ensure compliance with financial regulations and standards such as Sarbanes-Oxley, IRS Tax Code, and GAAP (and shortly thereafter IFRS).

9. Shareholders relations

A CFO must analyze the company’s shareholder policies, procedures, and information programs, including annual and temporary reports for shareholders and the Board of Directors, as well as proposals to the Chairman. regarding new financial policies, procedures or planning as needed.

10. Budget management & cost control

The budget is vital for the business, and the CFO is responsible for monitoring the entire budget, collecting financial ratios, and comparing the actual performance of the company to the budget. This is a difficult financial control process of CFO.

(Source: Bizmanualz)