CFO is an abbreviated term that stands for chief financial officer, and it is defined as a corporate officer who is primarily responsible in managing any financial risks of the corporation or company. The two other titles that also refers to a CFO, is FD which stands for finance director, and CFOO which stands for chief financial and operating officer. The different kinds of accounting and financial matters within a corporation or company is being handled by a chief financial officer.
A chief financial officer has a lot of different responsibilities, and that includes cash flow, company liabilities, company performance, department supervision, financial relationships, raising or finance capital, record control, shareholder relations, budgeting and expense control, and financial obligations. In cash flow, it is the responsibility of the CFO to control cash flow position within the company, and that includes understanding the uses and sources of cash, as well as, maintaining the integrity of securities, funds and any other valuable documents. In company liabilities, the CFO is responsible with the act of understanding all of the liabilities of the company or corporation, and that is due to the fact that a company has many statutory and tax obligations, leases, insurance summaries, legal contracts, and hidden liabilities in the form of contingencies. In department supervision, the CFO will serve as the supervisor of IT, HR, finance and accounting department of the company. When it comes to financial relationships, the CFO is basically responsible in establishing and maintaining the lines of communication of the shareholders, investment bankers and financial analysts of the corporation or company. In terms of raising or finance capital, the chief financial officer is the one who establish and execute the programs designed for the provision of capital that is required by the corporation or company. When it comes to record control, the CFO has the responsibility to prepare the required financial reports, to insure that the audits are to be completed in time, to ensure that the maintenance of the appropriate financial records, and to provide insurance coverage. In terms of shareholder relations, the chief financial officer is the one who is responsible in analyzing the corporation shareholder relations procedures, policies and information programs, and that basically includes the annual and the interim reports to the shareholders and the board of directors of the corporation. When it comes to budgeting and expense control, the CFO is responsible in collecting the inputs, comparing the actual performance of the corporation with an estimated budget, and overseeing the budget process. There are definitely a lot of CFOs in every parts of the world, and some of their common services includes business restructuring, financial reporting, strategic planning, and capital planning.