Based upon a bit of research, what you've learned in your prior coursework, or any observations...

90.2K

Verified Solution

Question

Finance

Based upon a bit of research, what you've learned in your priorcoursework, or any observations from your industry experiences,what are some of the key strategic functions of the CFO in thecurrent world of business? How does the role of the CFO differ fromthat of a company controller? Does every company require afull-time CFO? Be sure to include support or examples in yourcomments.

Answer & Explanation Solved by verified expert

4.4 Ratings (791 Votes)

Significance of a CFO A chief financial officer CFO is the senior executive in a company responsible for managing its financial actions The CFOs duties include tracking cash flows and financial planning as well as analyzing the companys financial strengths and weaknesses and proposing corrective actions The CFO reports to the chief executive officer CEO but has significant input in the companys investments capital structure and how the company manages its income and expenses The CFO works with other senior managers and plays a key role in a companys overall success in the long run For example when the marketing department wants to launch a new product or advertisement campaign the CFO may help to ensure the campaign is economically feasible or give input on the funds available for the campaign In the financial industry a CFO is the highestranking financial position within a company and in other industries it is usually the thirdhighest position in a company A CFO can become a CEO chief operating officer or president of a company The CFO role has emerged from focusing on financial compliance and quality control to business planning and process changes and now they are a strategic partner to the CEO The CFO plays a vital role in influencing the company strategy The United States is an international financial hub and global economic growth increases the employment growth in the US financial industry Hence there is an increasing demand for CFOs The US Bureau of Labor Statistics predicts the job outlook for financial managers to grow 7 between 2014 and 2024 The CFO is responsible for managing the financial activities of a company and adhering to generally accepted accounting principles GAAP established by the Securities and Exchange Commission SEC and other regulatory entities CFOs must also adhere to regulations such as the SarbanesOxley Act that include provisions such as fraud prevention and disclosing financial information Local state and federal governments hire CFOs to oversee taxation issues The CFO is the liaison between local residents and elected officials on accounting and other spending matters The CFO sets financial policy and is responsible for managing government funds Key Strategic Functions of a CFO in the current world of business Earlier people used to think that a CFO is only there to tell the co executive that there isnt enough budget when he she needed something or report only the financial results to the co board of directors But todays CFO must break away from the number cruncher stereotype think of himselfherself as a key strategic player in the co CFOs today need to be creative understand the best practices and know how to create more value for the company There will always be a need for someone to balance the books crunch the numbers and perform critical routine tasks but the CFO role is much more dynamic today Theres no doubt that the primary tasks of the finance function such as books and records financial reporting and statutory compliance are still of fundamental importance they continue to the responsibility of the finance team and consequently of the CFO that leads the team But the CFO has to now emerge over above See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member