CFO stands for the chief financial officer, who is a c-level executive. CFOs are responsible for managing the financial actions of the organization.
What is the CFO position?
Similar to other c-level positions, CFO is one of the highest positions in a company anyone can achieve. It is the highest financial position in an organization. The position was defined by large organizations, however nowadays medium and even small-sized organizations are looking for CFOs.
What does a CFO do?
CFOs responsible for planning, implementing, managing, and running all the finance activities of an organization. CFOs oversee all the financial activities while leading the finance and accounting teams. CFOs should also work closely with the CEO and other C-suite peers to understand and shape the organization’s short and long-term plans.
In the short term, a CFO makes sure that the organization can pay off its short-term liabilities. For a longer period, CFOs should ensure to maximize the return on investment. For the long term, a CFO should be able to forecast the organization’s future outcomes. To be able to make accurate forecasts, a CFO should work with other c-level executives and also have extensive knowledge of the market.
What qualifies a CFO?
Similar to other c-level positions, most companies are looking for at least a bachelor’s degree for their CFO candidates. A bachelor’s degree in business administration, business development, finance, accounting, or a related field is required at least. Most CFOs also have an MBA degree in related fields. Experience is also very important for CFOs.
Most job descriptions for CFOs generally require candidates to have more than 10 years of experience in finance departments. Organizations also mostly prefer professionals experienced in the field that the organization’s market. A technical skill set is also important for CFOs, including accounting software, financial data analysis, financial systems, and sales management solutions. And finally, just like other managerial positions, communication and leadership skills are essential since the position includes leading teams.
Who is higher than a CFO?
That depends on the company structure, but generally, the CEO is higher than the CFO.
Who does a CFO report to?
In most situations, CFOs report directly to CEOs.
What is the average base salary of a CFO?
The average salary for CFOs in the U.S. is slightly above $400,000. Most CFOs earn between $313,000 to $527,000.
Is the COO higher than CFO?
Both COOs and CFOs report directly to CEOs, thus they are both considered equal in most organizations’ structures.
Is the CEO higher than the CFO?
CEO is the highest position in the leadership thus, thus it is higher than CFOs.
Is VP of finance higher than CFO?
CFO is higher than the VP of finance.
Is the director of finance higher than the CFO?
CFO is higher than the director of finance role.
Is CFO a stressful job?
A lot of CFOs state that their job is very stressful for various reasons. A CFO believes that their role requires handling too many responsibilities makes it more difficult. Also, managing the cash flow in today’s world is a challenge where everything can change suddenly. CFOs also state that developing financial scenarios, producing various and accurate reports in a short time, and implementing tech for finance make the job more stressful.