Chief Financial Officer (CFO) Job Description

Posted by Fed Finance Canada in Our employment advice
Posted at 26/07/2023
Chief Financial Officer (CFO) Job Description
The CFO – or Chief Financial Officer –, being a prominent figure within the finance team, assumes a pivotal position in attaining the company's financial goals while actively fostering its financial stability and facilitating growth. 

Fed Finance, our finance recruitment agency, provides further insights into the job.

Chief financial officer duties and responsibilities

The CFO, a high-ranking executive typically part of the Executive Committee, holds a central position in a company, responsible for overseeing and managing its financial and administrative operations to ensure both stability and growth.

Financial management

As the head of financial management, the CFO takes charge of financial planning, budgeting, forecasting, and reporting. Implementing strategies to enhance profitability and mitigate financial risks, they ensure efficient management of the company's finances.

 Financial reporting

The chief financial officer diligently prepares accurate and relevant financial reports for various stakeholders, including management, shareholders, financial partners, and regulatory bodies. Through in-depth analysis of financial performance, they offer valuable recommendations for improvements.

Cash management

Overseeing cash and liquidity management, they ensures sufficient funds for day-to-day operations while optimizing investments and managing liquidity risks effectively.

Internal control and auditing

The CFO plays a pivotal role in establishing and monitoring internal control procedures to safeguard against fraud and financial errors. They collaborate with external auditors to ensure adherence to accounting and legal standards.

Administrative management

 Apart from financial matters, the chief financial officer often takes charge of administrative management, supervising departments such as human resources, purchasing, insurance, and contracts.

 Strategic decision-making

The CFO assumes a key role in strategic decision-making by providing financial analyses and projections. These insights aid management in identifying growth opportunities and making well-informed decisions.

Where do CFOs work?

Typically stationed at the company's headquarters, the CFO collaborates closely with members of the management committee, including the CEO and Managing Director. Furthermore, they engage with external auditors, bankers, financial partners, and regulatory bodies.

The chief financial officer’s role holds utmost importance in securing the company's financial stability and long-term prosperity. With their proficiency in financial management and strategic decision-making, these finance jobs become a crucial pillar in attaining the company's financial objectives.

Who do they work with?

The Chief Financial Officer (CFO) occupies a prominent and influential role within the company, providing oversight to various key departments. In the realm of accounting and finance, the CFO takes charge of managing the accounting team, overseeing general accounting operations, cost accounting, accounts payable, and accounts receivable. Additionally, they are responsible for handling financial statements, monitoring budgets, and preparing comprehensive financial reports, collaborating closely with financial analysts.

Beyond accounting and finance, the CFO also assumes the role of overseeing management control. This involves analyzing company performance, evaluating deviations from set objectives, and proposing corrective measures to enhance both profitability and operational efficiency. Furthermore, the CFO is accountable for cash management, making strategic investments, and effectively managing financial risks associated with liquidity.

Chief financial officer required skills

The CFO holds a position of significant responsibility within the company, and it is undoubtedly a challenging role. To effectively fulfill these responsibilities, they must possess a set of essential key competencies, particularly with a strong emphasis on hard skills in finance.

Financial expertise

As a prerequisite, the CFO must possess a robust background in finance, encompassing accounting, financial analysis, and a comprehensive understanding of accounting principles. Their ability to comprehend and interpret financial statements, analyze intricate financial data, and derive informed decisions from this information is crucial.

Financial planning and budgeting

A core competency for the CFO is proficiently planning and managing the company's financial resources. This entails formulating realistic budgets, vigilantly monitoring their execution, and deploying strategies to attain the company's financial objectives.

Cash management

The CFO shoulders the responsibility of effectively managing the company's cash flow and liquidity. Ensuring ample liquidity to meet financial obligations and diligently handling cash-related risks is of utmost importance.

Strategic decision-making

In strategic decision-making processes, the CFO plays a pivotal role by offering financial analysis and projections. This involvement helps assess growth opportunities, investment options, and financial risks prudently.

Leadership skills

The CFO must display adept leadership skills, effectively guiding and motivating their finance team. Making tough decisions and providing clear direction to achieve the company's financial goals are part of their leadership responsibilities.

Communication skills

Effective communication is paramount for the CFO, as they must present complex financial information in a clear and understandable manner for both internal and external stakeholders. This includes seamless communication with other members of the management committee, investors, financial partners, and auditors.

Financial risk management

The CFO must exhibit adeptness in managing the company's financial risks, which includes handling fluctuations in exchange rates, interest rates, and raw materials. To mitigate these risks, the CFO must implement prudent policies and strategies.

Customer orientation and results

Having a customer-oriented approach, the CFO seeks to comprehend the diverse needs of stakeholders and strives to provide tailored financial solutions to meet those requirements. Being results-driven, the CFO continuously seeks to maximize the company's profitability.

How do you become a chief financial officer

Extensive professional experience and specific skills are crucial prerequisites for this position, both of which can only be attained through years of dedicated effort and rigorous studies. Companies typically seek candidates with 5 to 10 years of experience, making this the foremost requirement for aspiring CFOs.

In Quebec, the path to becoming a CFO necessitates a Bachelor's degree in accounting or business administration, along with a recognized accounting designation like Chartered Professionnal Accountant.

Financial director job opportunities remain promising, as their pivotal role is indispensable across various industries. Candidates with substantial experience and advanced financial management skills are particularly in high demand for these top-tier positions.

Chief financial officer salary

The CFO's salary is generally in six figures. According to our study of compensation in finance, it's estimated at between $120,000 and $250,000, depending on the company they work for.

Upgrade with Fed Finance

Fed Finance is interested in all types of profiles in the finance and accounting sectors. Are you looking for a position of responsibility? We've got just what you're looking for. Send us your unsolicited application so that we can help you find that rare position.