What is a CFO?

Answer:
A chief financial officer, or CFO, is

an executive officer of a business who is in charge of the financial aspects of the company. CFOs are responsible for keeping records and managing the financial planning and financial risks of the business, and may act as a liaison in financial management matters. CFOs are generally on the board of directors and usually report to the chief executive officer, or CEO, of the business.

CFOs often have an accounting background, and are sometimes CPAs. However, many CFOs do not come from a finance background, which critics say can compromise a company’s financial integrity. In many jurisdictions, CFOs cannot also serve as the CEO, even if the company or organization is very small and the executive officer is performing both sets of duties.

Also referred to as a financial director, a CFO will have different duties depending upon the size and structure of a business. For example, in a small non-profit organization, a CFO may act primarily as an accountant and payroll clerk, taking care of all financial records, taxes, and paychecks himself or herself. At a large corporation, a CFO would likely head up the entire financial and accounting department, taking ultimate responsibility for all recordkeeping, payroll, and taxes, but likely doing little or none of these actual tasks. Instead, the CFO would manage employees who performed these job duties, or even outsource these duties to an outside accountant.


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