May 24, 2024

What is a CFO and what are its Objectives?

The Chief Financial Officer, popularly known as CFO (Chief Financial Officer), is one of the highest managers of an organization. It works closely with the General Management and its main objective is the strategic and financial development of the company.

With the help of the accounting, administrative and financial teams, the CFO guarantee the financial balance of the company and optimize its performance.

The Chief Financial Officer is responsible for managing relationships with banks and investors. It decides which investments should be made and part of its functions is to advise the general management in this regard. The CFO is one of the most important people in the business development process.

Objectives of a CFO

The CFO is the main manager of the company’s financial and administrative department, and has a variety of collaborators. It is your responsibility to divide the different tasks that correspond to your department, assuming, for your part, the following roles:

Responsible for company accounting

The CFO presents the main financial options to the CEO of the company; determines a strategy and supervises the implementation of the required instruments. They include: financing plans, monitoring of their implementation, income tax return filing in india and liquidity management.

You will implement the financial policy of your company, controlling the good management of the treasury, making available funds available and anticipating the financial needs of the company. To do this, it proposes an annual budget, verifies the general accounting, validates the financial options and signs the contracts. He is also in charge of proposing strategies and analyzing their results.

Manager role

The Chief Financial Officer does not work alone. He takes on the role of manager and has a team under his command made up of experts in their fields. These specialists are: Treasury managers, financial analysts, export finance specialists and international credit experts. The CFO divides the various tasks that correspond to each one of its collaborators. Their role is essential for the rest of the company’s top management.

Negotiator role

The Chief Financial Officer must be a good communicator, because it is up to him that the financial information is and is clear, both internally and externally. It is also responsible for negotiating with banks and/or all organizations that may participate in the financing of the organization. It represents the company during meetings and negotiations with various financial partners and with different administrations.

The Financial Plan

The CFO services in India are responsible for supervising the financial and accounting teams. It is your responsibility to prepare the budget, detect financing needs, and validate operations that affect your area. The Chief Financial Officer is primarily responsible for the company’s financial, accounting, and budgetary strategy. As such, he oversees all functions related to treasury, billing, banking relationships, financial audits and also the company’s general investment policy. Investments are always made under your approval. If you are a member of a group of multiple companies or subsidiaries, the Chief Financial Officer is responsible for consolidating the accounts.