“CFO” stands for Chief Financial Officer. A CFO often works closely with a company’s CEO.
A CFO is in charge of a company’s money. He or she oversees all the financial activity. This includes budgeting, planning, spending, investments, earning, and collecting. In large companies, a CFO oversees accountant and finance departments. In smaller companies, a CFO often is the accountant and finance department.
A CFO of a large company will also help with leadership and administration. They may help with business planning. They are often responsible for preparing financial statements, annual reports, and forecasts. They may also help develop company policies and guidelines, especially those involving finances.
Note: There is sometimes some confusion between the job titles “CFO” and “Financial Director.” While these may occasionally be synonymous, they are usually not. A CFO usually has more responsibilities than a financial director. Often, a financial director will be a position that reports to the CFO.
A CFO will need to be skilled in the following areas:
- Financial Reporting
- Financial Analysis
- Budget Management
- Senior Financial Management
- Industry-Specific Technology
Education and Training
A CFO will need at least a bachelor’s degree in accounting, finance, or similar subject. Many CFOs are accountants who have worked their way up to management positions. An expert accountant with a good business sense will make a good CFO candidate. Most Chief Financial Officers have acquired significant corporate experience.
According to PayScale, the median salary for CFOs is $117,815, with a range of $64,803 to $244,212. In general, the larger the business or organization, the higher the salary. Also, positions in metropolitan areas tend to pay more than positions in rural areas.
According to the Bureau of Labor Statistics, the job outlook for top executives is about the same as other careers. Job opportunities are expected to grow by 11 percent from 2012 through 2022.