CFO is basically an abbreviated term that refers to chief financial officer, and it is described as an individual who acts as a corporate officer with the primary responsibility of managing and directing any financial risks within the company or corporation. A chief financial officer is also called as a chief financial and operating officer, which is abbreviated as CFOO, or FD, which stands for finance director. Specifically speaking, the chief financial officer handles all of the different financial and accounting matters of a company or corporation.
A chief financial officer has a lot of different responsibilities, and that includes cash flow, company liabilities, company performance, department supervision, financial relationships, raising or finance capital, record control, shareholder relations, budgeting and expense control, and financial obligations. When it comes to cash flow, the CFO is the one who controls the cash flow position, and that typically includes maintaining the integrity of other valuable documents, funds and securities, and understanding the sources and uses of cash within the company. In terms of company liabilities, the chief financial officer is the one who understands all of the liabilities owned by the corporation or company, and that is basically due to the fact that a company has a lot of leases, insurance summaries, legal contracts, and statutory and tax obligations which is in the form of contingencies. In terms of department supervision, the chief financial officer will act as the supervisor of the finance, the HR, the accounting, and the IT department of a corporation. When it comes to financial relationships, the CFO is basically responsible in establishing and maintaining the lines of communication of the shareholders, investment bankers and financial analysts of the corporation or company. When it comes to raising or financing capital, the CFO or chief financial officer is the one who will establish and execute the programs typically designed for the provision of capital that is typically required by the corporation. In record control, the CFO is responsible in insuring that audits are to be completed in time, in preparing required financial reports, in providing insurance coverage, and in ensuring the maintenance of the appropriate financial records. In terms of shareholder relations, the chief financial officer is the one who is responsible in analyzing the corporation shareholder relations procedures, policies and information programs, and that basically includes the annual and the interim reports to the shareholders and the board of directors of the corporation. In terms of budgeting and expense control, the chief financial officer is responsible in overseeing the budget process, collecting the inputs, and comparing the actual performance of the corporation with an estimated budget. There are absolutely a lot of professionals who works as chief finance officers, and their common services includes strategic planning, capital planning, business restructuring and financial reporting.