User:Farhad Jelani

Duties of a Financial Officer

By Amber Keefer

A chief financial officer (CFO) holds the top financial position in an organization. This person oversees the organization's financial practices, including managing investments and assessing opportunities for growth. The CFO generally reports to the company's chief executive officer (CEO) and is in many cases a member of the Board of Directors.

Background

1. The CFO of a company is often a Certified Public Accountant (CPA); however, that is not necessarily a requirement. Many companies now hire individuals with an MBA in a management, marketing, finance or accounting realm. Candidates for a CFO position are usually required to have broad experience in a senior management role, typically a minimum of 5 to 10 years. The larger the organization, the more years of previous experience required. Knowledge of current financial and computer applications are other requisite qualifications. Primary abilities sought include extensive knowledge about how to raise money, as well as how to put funds to the most effective use.

Qualities

2. The CFO (sometimes known as the finance director) of an organization is expected to have excellent verbal and written communication skills in order to clearly communicate pertinent financial information to other management staff, board members, shareholders and creditors. The person must have high ethical standards and integrity that is beyond reproach. Even if the person is not an accountant, she must have basic accounting knowledge in addition to a general understanding of how the organization operates. She must have the ability to perform under pressure, especially when it comes to recognizing problems and formulating a plan about how to use the organization's resources to the best advantage. In order to accomplish this goal, a CFO must be highly motivated and organized, possessing the ability to interpret the vast amounts of financial materials compiled.

Duties

3. The chief financial officer is more than a bookkeeper who maintains accurate records of an organization's business transactions and accounts. As a corporate officer, the CFO is primarily responsible for managing the financial risks associated with running an organization. Although financial planning and supervision of recordkeeping are among the key duties, a CFO must report an organization's financial performance to the company's chief leadership personnel, along with preparing budgets and financial reports. A CFO also analyzes industry trends, directs a company's strategic financial planning, and is involved in short- and long-term planning.

Workday

4. The typical workday for a person who holds a CFO position can be long. Most of the work that needs to be processed cannot be accomplished in an 8-hour workday. A successful CFO has a strong work ethic and is willing to work as many hours as it requires to bring about results. Many CFOs work an average of 60 to 80 hours each week--all the more reason the person must be extremely reliable and willing to be involved in nearly every aspect of the organization.

Demand

5. The demand for CFOs is growing as more organizations look to CFOs to run things. Very experienced CFOs are being hired as CEOs in some cases; therefore, qualified financial officers may not have to move on to larger companies in order to move up the corporate ladder. Fewer organizations are hiring chief operating officers (COOs), with many qualified CFOs being hired instead. Many organizations are finding that CFOs tend to make good leaders with their ability to do cost analysis, financial planning and forecasting. The job requries that financial officers not be afraid to make decisions, which frequently means relying on making educated guesses. For this reason, confidence and relationship building are crucial characteristics needed for the job.