Who your CFO should be working with

Your Chief Financial Officer of CFO usually refers to the person in a corporation who is in charge of the corporate finances.Some other familiar terms for a Chief Financial Officer are treasurer or a financial director.Businesses need CFO's whether they are small or large to handle their in and outflow of cash.Let's look into a CFO's responsibilities and who they should be working with.

What are the responsibilities of a CFO in a small business?
In small businesses Chief Financial Officers will have many different responsibilities.They would be in charge of making financial reports, paying employees, and probably be responsible for filing the company's taxes each year.Keeping finance records and keeping track of how money is being spent and received would be one of the main jobs a CFO would do.Although it is not required of every CFO to have a degree knowledge in business management and accounting come in very handy and look extremely attractive to a business owner.

What are the responsibilities of a CFO in a large business?
Chief Financial Officers may have a somewhat different role when it comes to working with large corporations.They may be hired and put in charge of a large accounting department, or they may be put in charge in evaluating employees to determine a more efficient way to get work done for the least amount of money.

Who should your CFO be working with and what is their Role?
With so many different responsibilities it can sometimes be a little confusing on what a CFO's role is and who they should be working with.Because there are so many critical areas of every business an effective CFO will work to provide financial support for many aspects of one business.

Internal Controls
If your CFO is put in charge of implementing and supervising your internal controls they will be working with many different people.Internal controls includes management responsibilities and cash flow as well as overhead expenses, and also has to do with establishing credit policies for customers and working with different vendors.If this is where you have your CFO working then they will be working with management authority, customers, and various vendors to achieve favorable payment terms.

Outside financing sources
An effective CFO is also good at establishing relationships with banks and other financial institutions that have an impact on the business.If your CFO is working to establish good relationships with other financing sources then they will be working directly with other officer's at the company's bank to review operations, negotiate credit lines, or discuss private investors into the company.

Advisor to Company Management
As previously mentioned an effective CFO plays a key role as a member of the management team of every growing company.In this instance your CFO should be working directly with the business owner and top executives to help them make a connection between what they are doing within the company and the financial performance of it.

So if you're wondering who your CFO should be working with, the answer is fairly simple; wherever you designate your CFO to work.A CFO can play many different roles and carry various responsibilities within a company.Who they work with is ultimately up to you.