Shane Smith: The Role of a Chief Financial Officer

Have you ever wondered whether or not your business needs a CFO?

Shane Smith explains the role of a CFO executive, and how your business can benefit from hiring one today.

What is a CFO?

A chief financial officer (CFO) is the executive in charge of optimizing the financial performance of a business. They do this by monitoring cash flow and return on investment as well as creating financial reports.

It is the CFO’s responsibility to ensure that the business manages cash flow efficiently and is ultimately able to meet all of its financial commitments. Through leadership, communication, and strategy development and implementation, this executive is essentially like a financial safety net for any company.

The Role of a CFO

What is the exact role of the CFO within a company?

Tasks and Responsibilities

Shane Smith describes the following as common responsibilities a CFO can be expected to have:

  • Developing financial strategies
  • Working with tax accountants to develop tax saving strategies
  • Managing budgets
  • Monitoring business plans
  • Communication with the board
  • Negotiating with suppliers and vendors
  • Managing accounting, legal, tax and treasury departments
  • Meeting with executives for developing strategies and making decisions
  • Developing, implementing, and overseeing processing systems
  • Reviewing financial reports
  • Looking into legal issues that could affect the business and ensuring they are in compliance with regulations
  • Choosing and maintaining insurance to protect the company
  • Supporting the company’s mission and culture
Shane Smith, Lubbock Texas Financial Expert — CFO’s have an integrative role in a business, bringing together multiple departmental functions and operations to positively impact the company’s bottom line.

Relationship with Other Employees and Executives

It’s not unusual for the following groups to report to the CFO:

  • Supply chain
  • Procurement
  • IT
  • Treasury

However, this depends largely on the company’s structure as well as the skill set of the CFO. In some companies, every department may report in some way or another to the CFO, especially if he or she is more hands on.

How a CFO Can Help Your Business

According to Shane Smith, a talented chief financial officer will have the skills and knowledge necessary to benefit any business.

More Efficient Workflow

If there is a part of a company’s pipeline that is inefficient, thus costing valuable time and money, a CFO will be able to spot these problems and find solutions that will make the workflow more efficient.

Better Return on Investment

Because CFOs know how to perform proper risk analysis, Shane Smith states that they understand which risks to take and which not to take for the best possible return on investment. Whether this is done by changing suppliers, updating regulations, or cutting/raising budgets, it is the CFO’s job to get this done to benefit your business.

Financial Safety

Many laws and regulations apply that your company needs to be respected — this can sometimes be difficult to keep track of in a large company. A CFO will be an expert in these regulations and will understand how your company should operate to both respects and optimize their processes to maximize profits.

A talented chief financial officer is a key part of any successful company and can save millions of dollars in the long run when they understand the business.