What is the Full Form of CFO?

2 minute read

The full form of CFO is Chief Financial Officer. A CFO is responsible for managing the company’s financial operations and strategy. The person directly reports to the CEO of the respective company. 

The CFO is regarded as a top-level executive in a financial company. In other industries, a CFO is considered the second highest-ranking position in the company after the CEO. A CFO may serve on the board of directors, it completely depends on the company. 

Roles and Responsibilities

The duty of a CFO is to create, execute and maintain the financial position of the company. A detailed view of the responsibilities of a CFO is mentioned below:

  • Assessing the financial statements
  • Maintaining the capital structure and carrying out financial operations
  • Providing financial information to the chief executive officer
  • Creating tax and financial planning
  • Submitting the Financial reports to the board of directors
  • Analyzing the company’s economic weaknesses and strengths and taking the necessary actions

Eligibility Criteria

There is no specific qualification for becoming a CFO. But many CFOs often have an MBA in Business, accounting, finance, or a related field, Chartered Accountancy, or a CMA– a popular certified management accountant certification.

Apart from academics, a CFO must have immense experience in management and finances. A CFO is expected to have at least 10 years of relevant experience in Accounting and Finance. Five years of experience must have been in a managerial role. 

Skills Required to Become a CFO

A CFO must have the following skills to run the financial department of a Company efficiently:

CFO Salary

As previously said, the chief financial officer is one of the company’s top jobs. These are highly paid firm employees due to the importance of the position. According to one survey, the average compensation of a chief financial officer in the United States is $3,71,548 as of April 2019. Isn’t it fascinating?

Is a CFO an Accountant?

No, a CFO is not an Accountant. Both positions might have the same niche; finance but serve a totally different purpose An Accountant handles bookkeeping tasks and tax filings. Meanwhile, a CFO focuses on the company’s financial future, creating forecasts and implementing the same.

Also Read: What is the full form of CEO?

Also Read: What is the Full Form of CMO?

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