CFO Full Form | What is the Full Form of CFO
CFO Full Form - Chief Financial Officer
Chief Financial Officer
- CFO stands for Chief financial officer.
- It is the designation of a senior finance manager in a company who monitors and manages all financial activities in a company.
- He's the head of finance and accounting department and is responsible for financial and risk management operations of the company.
- Generally, rich experience in finance or related fields together with an education background in finance, business or similar field is required to become a CFO.
- CFO reports to the Chief executive officer (CEO) and board of directors. A finance manager must have a management degree or strong accounting background to be promoted to the position of CFO.
- Some of the key responsibilities of a CFO:
- Plan and execute the financial strategy of the company
- Verifying the financial statements
- Overseeing the capital structure and financial operations
- Financial reporting to CEO
- Planning financial and tax strategies
- Reporting financial information to the board of directors
- Managing accounting, legal, tax, investor relations and treasury departments
- Analyze the financial strengths and weaknesses of company and suggest corrective actions accordingly.
Eligibility criteria to become CFO
- Many big enterprises cfos have professional credentials like an MBA (Master in Business Administration), a Master of Science in Finance or Accounting, or a certified Public Accountant with an accounting background or CFA.
- A finance unit usually includes professional accountants like Certified Public Accountant, CA (Chartered Accountant), Chartered Certified Accountant & Certified Management Accountant.
- This is not limited to maintaining the accounts or reviewing the financial numbers. Instead, over the past years, the chief financial officer’s role has diversified, and a CFO is expected to utilize his financial knowledge and knowledge to drive the company towards growth and success. As a result, this can be seen playing the following roles during a company.
- Planning strategies for the growth of the company by making important and relevant financial decisions. The decisions should be in line with the long-term goals of the company.
- Acting as a leader and taking ownership of the company’s financial results and planning the future course of action.
- Identifying the strengths of the team and utilizing those strengths for the higher financial performance of the company.
- Being the face of the company for dealings with the banks, investors, customers, and suppliers as chief financial officers is one of the company’s senior-most persons.