The Chief Financial Officer (CFO) is in charge of wisely investing the firm’s funds, in addition to fostering strong relationships with investors, bankers, and auditors. She or he also oversees the company budget.
CFOs are in a managerial role and oversee more than just the financial progress of an organization and its subsidiaries. For example, they may work with the human resources department to help create cost-effective employee benefit plans. Like the higher-ranking chief executive officer, the CFO reports to the board of directors and might sit on the board as well. Most aspects of the job require traditionally financial tasks, yet the role has transformed to include aspects of overall leadership.
The Evolving Role of the CFO
Today's Chief Financial Officers enjoy different responsibilities than those of days past. In the past, the CFO was expected to only pay attention to financial strategy. Today the role has expanded beyond that of a number-cruncher. The CFO often collaborates with the CEO and other management executives in making big decisions for the company. Recently, there has been less of a focus on solely financial responsibility.
Thanks to advances in technology, the CFO doesn’t need to spend the bulk of her or his time crunching numbers. The modern CFO might dabble in the IT department and could have a say in the marketing process. Budding startups and small businesses may hire a part-time “virtual CFO”, as their workload may not demand a thoroughly fleshed out position. These CFOs are typically outsourced from financial firms located all over the world.
How to be a CFO
Some business executives are able to achieve success through hard work and networking. For those who aren’t interested in pursuing higher education, this career choice won’t work for you; when companies are looking for potential CFOs, they expect you to have a Master's degree in a field such as Finance or Accounting. It also helps if you’re a Certified Public (or Management) Accountant with years of experience under your belt. A virtual CFO’s requirements are less demanding but the position still requires financial expertise, and a bachelor’s degree would give an applicant an edge. The college dropout success story is befitting of entrepreneurs—future CFOs, stay in school.
Do you dream of climbing the corporate ladder? If so, this might be a good job for you. There’s a trend of CFOs advancing to the ever-desired position of chief executive officer. A CEO works with the CFO, other chief executives, and the board of directors. With the broadened scope of the CFO, you’d gain plenty of beneficial skills to ready you for a promotion.
