What is the full form of CFO?
The full form of CFO is Chief Financial Officer. CFO is the officer of a firm primarily responsible for managing the organization’s finances, such as financial risk management, financial planning, financial analyzing and record-keeping. The CFO is also responsible for the supervision of data in other fields.
In the UK, a standard name for a CFO is FD (Finance Director). The CFO generally reports to the CEO (Chief Executive Officer) and the Board of Directors, and may also have a board seat. The CFO leads the finance department and is the chief financial officer of the company.
Eligibility criteria to become CFO
- Many big enterprises CFOs have professional credentials such as 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 such as Certified Public Accountant, CA (Chartered Accountant), Chartered Certified Accountant & Certified Management Accountant.
Primary duties of CFO
- Design and execute the company’s financial strategy
- Analyze the financial reports
- Capital structure & financial operations responsibilities
- reporting financial information to the chief executive officer
- Tax & financial planning approaches
- Submit financial reports to the board of directors.
- Review the economic weakness & strengths of the company and properly execute the appropriate actions.