What is a CFO?
This post may sounds basic, but it is an answer to a question I received by email.
CFO means Chief Financial Officer. Officer is the denomination in U.S. to certain Managers like CEO (Chief Executive Officer), CIO (Chief Information Officer), CMO (Marketing), etc.
But I would use this post to explain, my opinion about the real and current role of CFO.
In past years (decades), the CFO was the “Money man”, the executive in charge of money, for cutting costs and enhance profits. The man in charge of accounting and taxes.
These tasks are still part of the CFO role, but I want to clarify that a CFO is a business man, and in this dimension, the most important function of CFO is to add value to company, and I’m not talking about stockholders only, I’m talking about value for Stakeholders.
Generating current and exact financial information, must be part of CFO duties too.
To invest and to finance, to use and to obtain financial resources with criteria and accountability, according to company standards and policies is a fundamental part of a CFO functions too.
Al last, but not least, the role of advisor of CEO in strategic affairs will be one of the most important activities too. The CFO is the navigator of rally pilot, who knows the map, who knows how to read it, and iluminates the road to follow for CEO, who contributes with the neccesary Leadership and knowledge of industry and market.
That is a CFO, much more than three letters together.
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