The Chief Financial Officer (CFO) and the Chief Executive Officer (CEO) will often consult with each other on various business matters. Neither can do their job without the other. However, when it comes to CFO responsibility, it does have distinctions from that of the CEO. What do CEOs really need from their CFOs and how can your company fulfill those requirements? Find out through breaking down what CFO responsibility entails and whether you can outsource this task for the greatest benefit to your operations.
CFO Responsibility and Skills
CFOs have several responsibilities and require hard and soft skills to fulfill their duties. For instance, a CFO must have the analytical ability to examine accounts, budgets, and cash flow to determine the financial health of a company. They should also be able to identify and mitigate financial risk for the company.
Modern CFO responsibilities may also include knowing the tech the company needs to accomplish its financial goals and which traits HR needs to look for when hiring personnel.
Due to the way that decisions made by the CFO can affect the company, the person in this role must have good communication skills to work with the CEO and convey the direction the company’s finances need to take.
Why You May Want to Outsource CFO Responsibility
Outsourcing CFO responsibility can be advantageous for your company because you cut costs compared to paying full-time benefits and salary to an employee. Additionally, an outsourced CFO will have an impartial perspective of your company, allowing for a neutral viewpoint when you need oversight and delicate financial decisions made.
What CEOs Want from Their CFOs
CEOs often have certain requirements or expectations for their CFOs. For instance, they need the CFO to effectively communicate the company’s financial situation and to make decisions without wavering. Plus, a CEO needs to feel assured that the CFO will provide the whole truth, regardless of emotions that the news may elicit.
Rather than spending time and money to find the ideal CFO, many companies choose to outsource CFO responsibility to a vetted individual who has already proven their mettle to help businesses with their financial needs and meet the expectations of exacting CEOs.