Functions of The Chief Financial Officer an Organisation
The CFO of a company is a person who is responsible for managing the company’s finances Financial Planning managing of financial risk keeping records and also providing Financial Reporting.
One of the roles of the chief financial officer or CFO that’s how he makes a capital structure decision of the organization. The capital structure of an organization allows the management to understand the kind of funding’s the company uses to finance its overall activities undergrowth. In a company, the debt and equity distribution are what make up the finances of the company. The chief financial officer is in charge of balancing the Equity and debt carefully that a business uses to finance its assets the day-to-day operations and also for future growth. The CFO ensures capital plans and capital investments are in place for strategic growth and fundamental investment models are from year-to-year to ensure that the company is in a good state of stability and is growing.
Risk management is also the work of the CFO and he is in charge. When we talk of risk management it is where there are the focus of financial risks and the CFO ensures that there are procedures that are put in place to avoid or minimize the impact of those risk in an organization. The CFO is in charge of executing strategies in an organization’s they are the ones that can identify risks are system manage and integrate them into the corporate strategy. It is the work of the CFL to ensure that risks such as liquidity debt compliance financial and operational risks and many other risks are mitigated to ensure that the bottom line of the organization is secured.
The CFO and ensures that audits and reporting is done correctly in an organization. The importance of auditing is to ensure that the company complies with the laws and regulations and also ensures that there are accurate and timely Financial Reporting and data collection for the CFO to come up with reports that show the financial status of the organization. Auditing is very important because it helps an organization to show and ensure that it complies with the rules and regulations and also ensures there is timely and accurate Financial Reporting and data collection which helps the CFO to come up with reports are to show the financial status of their organization. The CFO is expected to manage the avoidable circumstances and inform the board in time so that measures can be put to mitigate any issue.
Another role of the CFO is that he ensures that there is investor relationship. The CFO needs to understand that there are different kinds of investors that is the sell-side analyst and also the buy-side analyst he should ensure that??allocated ?time effectively for both of the analysts so that he may be able to balance and ensure that they are in the business wholeheartedly. The CFO should also ensure that he shares his milestones with the investors and also the potential investors of the company so that they may know are the Milestone you are at and keep a track on it.