The senior executive of the company is the CFO or chief financial officer. The CFO's responsibility is overseeing and managing the business's financial operations. A CFO's primary responsibility is managing a company's cash inflows and outflows. The financial planning must also be written by a CFO, who is also incharge of identifying the company's financial strengths and shortcomings and making recommendations for improvement.
A CFO is someone who oversees a company's accounting and financial operations. The controller's role is comparable to that of the CFO. They both ensure that the company's financial records are accurate, that the financial report is actual, and that it must be finished on time.
There are 3 important areas that indicate what a CFO does.
- Regulation observance.
- Company Financial report.
- Maintain the book report of the company.
Do you know who won the best CFOs In India 2022?
Reliance Industries Limited's Shrikanth Venkatachari, Joint CFO, earned the FE CFO of the Year award for 2022. He was honoured for his practical ideas, business skill, and full growth of RIL. We can say that reliance industry CFO is the best CFOs in India in 2022.
Wipro, Bajaj, ICICI and HCL were nominated for the CFO's award.
What is different between CFO and CEO?
CFO (Chief Financial Officer)-
The most senior financial officials in a company are the CFOs. They collaborate closely with the board of directors and answer directly to the CEO. Despite the fact that the CEO holds a higher-level position on the organisational chart, the CFO and CEO collaborate closely in high-functioning businesses, with the CFO acting as a sounding board, strategist, and risk manager.
CEO (Chief Executive Officer)-
The highest-ranking executive in a corporation is the chief executive officer. Depending on the corporate structure, the CEO may be in charge of every area of the operational and financial well-being of a company, or a president may share some responsibilities. The CEO serves as the organization's official spokesperson and faces the media, analysts, the general public, and, if necessary, the board members.
Why Should hire a CFO in your Company?
Use the proper financial model in your business operations to be successful. Your CFO can assist you in achieving this by reviewing important financial procedures including budgeting, strategic planning, and more. Building a plan for the future of the company is easier when you have the correct financial model.
When the CEO and less senior financial employees are unable to accurately assess the organization's financial condition, evaluate cash flow, estimate future financial needs, and inform business strategy, organisations should think about appointing a CFO. Some experts suggest that millions in annual revenue serve as a sign that a full-time CFO should be hired. But keep in mind that there are also virtual CFO-as-a-service and part-time/fractional options available.
While many companies would wait to establish this position until they start to face financial difficulties, we advise taking a more proactive approach.