What is CFO and what benefits can it bring to your company?

Updated: 05/05/22

In this article we are going to show you what a CFO is and what benefits they can bring to a company. This profile is often not known by companies, so they do not enjoy all their skills.

What is CFO?

The acronym stands for Chief Financial Officer. These acronyms are widely used at the professional level.

To give you an idea, the CFO has the following functions objective to plan the company's economy. That person is the responsible for deciding where to invest and where to raise finance for the company.

The CFO aims to create value for the company and make it grow. For this reason, he is in charge of controlling the company's finances and investments. And in order to be successful, he always works from an analytical point of view.

Roles of the CFO

As mentioned above, its main objective is to adding value to the company through financial planning of the company. But as we are going to show you, the professional has many more functions that allow the company to benefit from all these advantages. But if you are wondering what a financial director does, we will show you some of his or her functions below. main functions.

• Analysis: The CFO has the ability to analyse the economic situation of the company in the market. Thanks to this information, he or she can make moves to balance the company in the market and thus achieve higher profits for the company.
• Development of plansis able to create plans for the company. These plans allow to know the main objectives of the company. Not only in terms of sales and costs, but also in terms of financing and investments. This makes it easier to balance the company's accounts in a positive way.
• BudgetsThe CFO is also capable of budgeting for the medium and long term. Sometimes they can even be commissioned to do these budgets for several years. In this way, it is possible to see whether the company has a future or not.
• Directorate Financial DepartmentHe has the ability to directly manage the financial department. Of course, he will not be in charge of everything, but he will manage the employees in that department so that everything runs smoothly.
• Contact with investorsThe professional will also be in charge of finding and contacting investors. The objective is to attract them so that they invest money in the company and therefore make it easier to make it profitable and make it grow.
• Communication: It should also communicate with other managers in the company to make decision-making easier for each of the parties concerned.

Key skills of a CFO

In order to be a good CFO, the professional has to be a good financier. Without that skill, you will never be able to become a CFO.

But also must dominate the sector in which you are going to work. This makes it easier to make good decisions in favour of the company.

Not forgetting that the professional must have a number of skills, such as being a creative person in order to provide opportunities for the future of the company. Of course, the CFO has to be proactive and courageous so that the company can be able to reinvent itself and adapt to changing times.