The full form of the abbreviation CFO is Chief Financial Officer who is posted for the management of financial risk in an organization. It is not possible to execute all the operation of an organization single-handedly. So, the company hire various skilled officials for different sections to operate.
The finance officer oversees the growth of the company financially and will reports generally to CEO and the board of the directors.
It is a very responsible work to control the financial condition of an organization. Account and financial department is under chief financial officer and they take a close observation on it.
They manage the financial crisis if company faces and help the company to survive and overcome such conditions. As this is one of the higher post in an organization, so, it is expected to be more responsible. The similar post in the U.K is known as FD (Finance Director).
Educational Qualification
Candidates who are from the educational background of finance, business management or any other equivalent qualification are preferable for the post of CFO. Other than this, it is also necessary to have a management degree in accounting from the top college.
It is generally found that the business officers are become the CFO after having sufficient experience on that field.
Required skills
This is one of the most responsible post of an organization, so, it requires some specific skills to become successful on their position. We have mention some skills that is very important in their career are.
- Able to tackle difficult situation if appear.
- Must have ability to make strategies for the development of the organization.
- Must have sound knowledge regarding account departments so that they can handle it properly.
- Should possess moral values and ethics that will help them to build a good interpersonal relationship with the other employees.
- Can able to manage financial crisis and overcome this situation with their skills.
Responsibilities
Like every department, financial department also has a chief officer who is known as the chief financial officer and has the authority to take all the important decision regarding finance. They are involved in the certain operation such as purchasing, pricing, investments, tax, debt management, and accounts payable.
Transaction made by the various departments will be under the observation of CFO and they will maintain records of all transaction for further use. They will present these records before the external auditors or to the senior officials.
CFOs take care of the financial compliance management that should be maintain by an organization. They work hard and do research as well as audit in all the departments throughout the organization to make confirmation that they are obeying the local and federal laws, and guidelines.
We divided the tasks of a CFO on daily basis as:
- Manages the financial aspects of the organization.
- Keep a record of all the transactions done by the organization.
- Prepare a forecast of expenditure and investment that the organization is indented to do.
- Make sure that the financial compliance management is maintained.
- Perform internal audits to avoid any kind of difficulties during external audits.
Working function of CFO
CFO reports to its upper management i.e. CEO about company’s investments, capital structure, management process of income and expenses. In company’s long-term success, CFO plays an important role along with other senior officials.
As for example, when the department of marketing is intended to launch any new campaign, CFO will ensure the feasibility and avail the provided for the campaign.
In case of financial industries, a CFO is in the highest position but in other industries, it is the third highest position of that organization. A CFO may be promoted to CEO, chief operating officer, or president after having enough experience.
Benefits of Being a CFO
Initially, role of a CFO was compliance and to control quality. But, now, they take participation in planning business, changes in various process and also plays an active role in to prepare strategies with CEOs.
For this overall advantages of having a CFO, most of the organizations demanded CFOs and the demand of this post has increased.
Salary of CFO
The salary of a CFO depends on the revenue of that organization that happen during their working era. It may also vary with size and success of the organization.
CFO is an executive post of the company and get a decent amount and increases with the growth of the company. In some cases, it is found that a CFO gets more than other executive officials.
An average salary that is offered to a CFO is in the range of INR 2,000,000 and INR 5,000,000 per annum.
Related Full Form:
Conclusion
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CFO Full Form: FAQs
Q1. What is the full form of CFO?
Ans: The full form of CFO is Chief Financial Officer.
Q2. What are the qualification required for a CFO?
Ans: Having background in finance, business management or any other equivalent qualification as well as management degree is very good to get selected as a CFO.
Q3. What is the average salary of a CFO?
Ans: The average salary of a CFO in India is between INR 2,000,000 and INR 5,000,000 per annum.
Q4. What are the responsibilities of a CFO?
Ans: A CFO is responsible for financial activities done in an organization. They play active role in such as purchasing, pricing, investments, tax, etc.
