Top Ways a CFO Can Help Grow a Business
A CFO (Chief Financial Officer) of a company is responsible to the Board of Director’s of that company for all financial and accounting matters. They’re liable for establishing key policies, processes, procedures, programs, practices, and objectives to ensure that the company maintains solid financial principles in order to help the business continue to grow.
Here are the primary responsibilities of a CFO and how they help promote business:
1. Ensures Company Responsibilities
Part of a CFO’s responsibilities is to fully understand each aspect of the company’s key liabilities. In general, a company has several statutory and tax obligations, legal contracts, and expectations from the board of directors and/or loan covenants as well as hidden responsibilities in the form of insurance summaries, leases, and contingencies.
2. Oversees Cash Flow
A CFO controls the cash flow throughout the organization in addition to maintaining fund integrity, securities, and valuable documents. They understand both resources and uses of money.
3. Maintains Financial Relationships
CFOs establish and keep open lines of communication with financial analysts, investment bankers, and shareholders along with the company’s president. They administer both loan agreements and banking agreements and also maintain proper resources of capital for the corporation’s current borrowing from various lending institutions and commercial banks.
4. Ensures Company Performance
CFOs understand business models for creating customer value and know how to interpret the working metrics into good company performance.
5. Liable for Shareholder Relations
A CFO is responsible for evaluating company shareholder procedures, policies, and key information programs, such as the yearly and interim reports to the Board of Directors and shareholders.
6. In Charge of Department Supervision
In smaller businesses, the CFO serves as the main overseer of IT, HR, finance, and accounting. In larger companies, their responsibilities may just include finance and accounting functions in general.
7. Supervises Budgeting/Expense Control
Budgets are a natural part of any business and CFOs are liable for overseeing the entire budget process, comparing the organization’s actual performance with budget estimates and collecting the necessary inputs.
8. Raising Capital and Finance
A CFO establishes and implements certain programs in order to provide the necessary capital that the company needs, including handling the procurement of debt along with equity capital and upholding the necessary financial arrangements. A CFO also coordinates the long-term plans of the organization as well.
9. Record Control
The company’s CFO is liable for each financial aspect regarding all company transactions such as leases, contracts, and real estate bids.
These are just some of the key responsibilities of the CFO. They help to ensure the overall success of the company as well as help continue its growth each year.