A chief financial officer — commonly referred to as a “CFO” — may not have been one of the most essential financial management jobs in the corporate world a few decades ago, but these days, CFOs are becoming some of the most important executives in the most successful companies. If you’re a bit unsure why so many companies are willing to invest so much time and energy into finding good CFOs, here are just a few basics about the job:
- A CFO is essentially a company’s financial manager, and usually directly to the company’s CEO and board of directors. Whereas a CEO tends to oversee the company’s general management, a CFO is in charge of every financial aspect of the company, as well as the employees who have financial jobs in the company.
- Although the qualifications for becoming a CFO are different from company to company, it’s expected that someone in a CFO position has had an internet in corporate finance careers and has worked in the financial industry for quite a while. Most CFOs have MBA degrees and/or have a lot of experience in accounting.
- Keeping track of records and numbers is only the first part of the responsibilities of a CFO; these positions also require that the person is capable of managing teams and departments that handle the company’s finances, and has to be flexible and forward-thinking in regards to ways that the company can best use its money in the future.
- As far as corporate finance careers go, a CFO position is definitely one of the highest paying jobs a person can have. That being said, there’s a lot of extra work that goes into being qualified for and successful in the position; as with most financial management jobs, you have to be willing to work long hours and build up a professional reputation before earning a top spot in a major company.
So, are there any important details about CFOs that we happened to leave out? Be sure to add any info you have in the comments section!