Chief financial officer

A chief financial officer (CFO in short) is a top leader in a company who is in charge of all of its money and finances. The CFO reports directly to the chief executive officer (CEO). The CFO is typically the third-highest-ranking executive in a company.^[1]

Chief Financial Officer (CFO)

Occupation
Occupation type	Executive position
Activity sectors	Finance, Management
Description
Competencies	Financial planning, Accounting, Risk management, Leadership
Education required	Bachelor's degree in Finance, Accounting, or a related field.
Related jobs	Chief executive officer (CEO) Chief operating officer (COO) Treasurer Controller

The CFO is responsible for the financial management of a company. For example, they are responsible for accounting and financial reporting. The CFO also ensures that the company has sufficient cash in its bank accounts, allowing it to pay all its bills to suppliers, salaries to workers, and taxes to the government.

What a CFO does

The job of a CFO is more than just paying bills. Their main duties often include:^[2]

Financial Planning: Helping the company decide how to spend its money in the future. This includes making a budget.

Managing Money: Watching the company's money to make sure it is not being wasted. They make sure there is enough cash to run the business day-to-day.

Financial Reporting: Preparing reports about the company's financial health. These reports are for the CEO, the board of directors, investors, and the government. The reports must be honest and correct.

Finding Money: If the company wants to grow, build a new factory, or buy another company, the CFO must find the money to do it. This might mean getting a loan from a bank or finding investors to put money into the company.

Managing Risk: Looking for financial risks that could hurt the company. A risk is something bad that could happen, like if sales go down or if the cost of materials goes up. The CFO makes plans to protect the company from these risks.

Role in the Company

The CFO works very closely with the CEO. The CEO might have a big idea for the company, and the CFO figures out if the company can afford it and how to pay for it. Because they are in charge of the company's money, their opinion is very important for any big decision.

How to become a CFO

To become a CFO, a person usually needs a lot of experience in finance or accounting. Most CFOs have a degree from a university in a subject like business, finance, or accounting. Many years of work are needed (around 10-15 years) to get the skills for this top job.^[3]