Roles and Responsibilities of a CFO

1617074_steveshamrock.com_Roles and Responsibilities of a CFO

The roles and responsibilities of the Chief Financial Officer have changed considerably in the last few decades. These charges are partially due to advances in accounting and information technology as well as changes in global accounting practices and legislation. Despite these changes, a CFO is still essential to help businesses accurately interpret financial information and predict financial outcomes. Since 2013, Steve Shamrock and the experts at Shamrock vCFO Services have been providing vital financial services to businesses both large and small through a virtual CFO firm. How can a vCFO help your business stay on track?

One very important role of a CFO is controllership duties. These duties primarily involve the timely and accurate reporting of historical financial information. This information is vital to stakeholders, shareholders, and other entities that are financially invested in your company. These reports help stakeholders evaluate business performance and predict future ROI. Financial data is usually compiled on a regular basis, either monthly, annually or quarterly, depending on the company.

Treasury duties involve monitoring a company’s current financial condition. When investments are proposed, it’s the CFO’s responsibility to evaluate the risk associated with each investment and whether or not the company has the capital or should seek the capital to invest. The CFO manages the company’s capital structure and determines how capital will be financed. Capital structuring is a delicate balance of debt, equity, and internal financing, and maintaining that balance is one of the CFOs more important responsibilities.

Forecasting and strategy go hand-in-hand when it comes to determining the best course of action for the future of any company. The CFO must be able to identify areas within the company that are performing well and help the CEO make decisions about poorly-performing areas. This information can help decision makers determine what areas of the company to focus on and what areas need to change. Forecasting is a unique skill that uses economic modeling to help the CEO predict the financial future of the company and how their decisions will affect future outcomes.