subject: Tackle Your Business Problems With Tatum [print this page] Are you aware that a Chief Financial Officer can help increase your businesses profits? A chief financial officer (CFO) is a business official mainly responsible for managing the financial goals and clarity of the corporation. Roles and the organizational structures in which CFOs operate vary significantly, but typically their responsibilities can be broken down into three categories.
First category is controllership duties. This duty holds the CFO accountable for presenting and reporting accurate and timely financial information about the company. All stakeholders in the company including, management, shareholders and employees rely on the accuracy and timeliness of this financial information. It is crucial that the information reported by the CFO is correct, because many decisions about the business are based on it.
Next are their treasury duties. They are responsible to the businesses financial situation, so they must make informative decisions on how to invest the businesses money, while considering the risks involved. Also, the Chief Financial Officer manages the capital model of the company, determining what is the best blend of debt, equity and internal financing. Focusing the issues of capital structure is one of the most significant duties of a CFO.
Lastly, is the economic strategy and financial planning for the future. Not only is the Chief Financial Officer responsible for the businesses current financial situation, but also they are an integral part of the company's financial future. They must be able to recognize and record what areas of the company are most efficient and how the company can grow with this information. The CFO of must be able to pinpoint what areas are making the most money for the company and how this information can be used to improve areas of the company in the future. Basically, this aspect of their responsibilities includes economic forecasting and modeling, or trying to predict the best way to secure the company's success in the long term.
The responsibilities of a Chief Financial Officer are very complex and is continually evolving. Selecting the right CFO is a crucial aspect to a businesses success; it can make or break a company. It really pays to know what type of role the company would like the CFO to take. Do your research for a thorough understanding of what you want!
