When you hear the term chief financial officer (CFO), the first thing you may probably think about is corporate finances. But, there's more to a CFO's job than just dollars and cents. If you asked any company's CFO about what they do, you would probably be in for a three-hour conversation. But, the core duties can be summarized in just a few paragraphs.

Controllership Duties

Controllership duties make up the backward-looking part of a CFO's job. They hold the CFO responsible for presenting and repo🌊rting accurate and timely historical financial information of the company. Undertaking controllership duties include (but aren't limiಌted to):

• Internal oversight
• Preparing financial statements
• 澳洲幸运5官方开奖结果体彩网:Budgeting and forecasting
• Supervising the accounting department
• Coordinating audits
  

All 澳洲幸运5官方开奖结果体彩网:stakeholders in the company, including shareholders, analysts, creditors, employees, and other members of management, rely on the accuracy and timeliness of this information. The information reported by the CFO must be accurᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚate because many decisions are based on these details.

Treasury Duties

The CFO is also responsible for the company's present financial condition, so they must be able to handle the company's cash flow and decide how to invest the company's money. This means they have to consider the 澳洲幸运5官方开奖结果体彩网:liquidity and risks associated with the decisions they make. This requires a deep﷽ understanding of risk assessment, financial management, and analytical skills.

They also oversee the 澳洲幸运5官方开奖结果体彩网:capital structure of the company. As such, they determ൲ine the best mix of debt, equity, and internal financing. Addressing the issues surrounding a company's capitaꦛl structure is one of the most important duties of a CFO.

Economic Strategy and Forecasting

Not only is a CFO responsible for a company's past and present financial situation, but they are also a key player in a company's future growth potential. A CFO must be able to identify and report what areas of a company are most efficient and how the company can capitalize on this information.

This aspect of a CFO's duties also includes economic forecasting and 💧modeling. In other words, the CFO must try to predict the best way to ensure the company's success in the future♏ given multiple scenarios.

For example, the CFO of an auto manufacturer must be able to pinpoint which models make the most money for the company and how this information be used to help improve the company's financial position in the market in the future.

How Much Does a Chief Financial Of🌳ficer (CFO) Earn?

A CFO is part of a company's C-suite. This term is used to describe a corporation's top senior executives, including the chief executive officer (CEO), chief operating officer (COO), 澳洲幸运5官方开奖结果体彩网:chief information officer (CIO), and CFO.

Given their job duties and the experience they bring to the table, it should come as no surprise that CFOs often earn top dollar. The 澳洲幸运5官方开奖结果体彩网:Bureau of Labor Statistics (BLS) groups all executive positions in the same category. The agency reported an annual median salary of $103,840 for 2023. Keep in mind that this average doesn't include any incentives like 澳洲幸运5官方开奖结果体彩网:stock options and bonuses, so their salaries can get even higher as shown in the table below for the highest-paid CFOs in 2024.

The Bottom Line

The CFO's job is a very complex one. We have only scratched the surface of the many things this corporate executive is responsible for. One thing is certain: The way a great CFO differs from a good CFO is in the way they are able to project the long-term financial picture of the company and by how the company thrives based on metrics such as multiple analyses.