What is the Full Form of CFO?

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. 

What Does a CFO Do?

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

How to Become a CFO?

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:

• Strong communications skills
• Great leadership qualities
• High vision and foresight
• Excellent risk assessment skills
• Strategic mindset
• Business intelligence

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.

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