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. To be more specific, a CFO handles the different types of accounting and financial matters of a corporation or company.
A CFO has basically a lot of various responsibilities within the company or corporation that hires him or her, and that typically includes company liabilities, company performance, department supervision, financial relationships, raising or finance capital, record control, shareholder relations, budgeting and expense control, financial obligations and cash flow. In terms of cash flow, it is basically the responsibility of the chief financial officer to control the cash flow position of the corporation, including maintaining the integrity of securities, funds and any other valuable documents; and understanding the uses and sources of cash. 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. When it comes to department supervision, a CFO is the one who will serve as the supervisor of the various departments within the company, such as the HR, accounting, IT and finance department. In financial relationships, the CFO is the one who maintains and establishes lines of communication with shareholders, financial analysts, and investment bankers. 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 terms of record control, the chief financial officer is basically the one who is responsible in in preparing the required financial reports, in providing insurance coverage, in ensuring the maintenance of the appropriate financial records, and in insuring that audits are to be completed in time. In shareholder relations, the CFO is the one who analyzes the company shareholder relations information programs, policies and procedures, and that includes the interim and annual reports to the Board of directors and the shareholders of the company. In budgeting and expense control, the CFO is the one who oversees the budget process, the one who compares the actual performance of the company with an estimated budget, and the one who collects the inputs. 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.