A chief financial officer can also be known as the vice president of finance, sometimes even the senior vice president or executive vice president of finance in the company. A CFO is accountable for all the accounting and finance operations of an agency or business. The job may include duties like financial reporting and complying with the accepted accounting and finance standards and the various regulatory requirements.
The CFO of a public company ensures that the company’s reported financial statements are accurate and free from any errors, and that they are in perfect agreement with all the standards and regulatory requirements. A CFO can get penalized for delivering wrong, incorrect, or misleading financial data.
CFO Job Duties
The job duties of a CFO can differ depending on whether the position is in a private or public company. Overall responsibilities include taking part in the strategic business and financial planning processes of the organization, keeping a constant check on various financial processes, systems, personnel as well as policies, and assuring agreement with the SEC regulations and the recently enacted Sarbanes-Oxley legislation if working in a public company. Depending on the structure of the business, the CFO may also other responsibilities like information technology responsibility, legal responsibilities etc.
CFO jobs can be very demanding and so expect long hours at work, which may sometimes even include evenings and weekends. Frequent travel can also be a part of the job.
Skills Needed for CFO Jobs
To become a chief financial officer your skill set needs to include but not be limited to: understanding complicated financial concepts, attention to detail and have a flair for numbers, planning skills and strategic thinking, have a know-how of market forces and various industry trends, understanding business strategy, various business operations and processes, have knowledge of non-financial areas of the business,
Income
The pay will differ depending on the type and size of the corporation. Compensation of a CFO can contain a base income, stock options, stock grants, bonus, long-term incentives and other rewards. Other perks may include use of company transport, memberships etc.
Training and Education Qualifications
The formal education of every CFO can be different. Even though there is no need for a specific degree to become a CFO, financially oriented degrees are preferred. A CFO generally has a background of accounting or finance. Most CFO’s would without a doubt have at least a bachelor’s degree in accounting or finance.
Many CFOs have MBAs and other degrees to their name as well. Usually, it is seen that CFOs attend various executive education programs to sharpen their skills and to have a better understanding of the issues that concern CFO jobs.
Job Outlook for CFOs
There is a lot of competition for the position of the CFO, and why not? High pay and the status of top management position draws the attention of one and all. While on one hand, numerous openings can be expected as many executives shift to other positions, start their very own venture or retire, many new individuals are eager to sign up.
Due to the Sarbanes-Oxley legislation, many CFOS are being forced out or leaving on their own account because of the increased knowledge and responsibilities of the CFO in the present regulatory climate. Some CFOs are making the shift from public to private companies where there is less regulatory burden. This should increase the competition in the private companies.
CFO employment growth is very similar to the growth for all the top executives; it can be expected to be as fast as the average for all jobs. However, in certain industries like professional services, technical services, support services, scientific services and administrative services, growth can be expected at a faster rate than average employment growth. Some industries such as manufacturing industries can expect downward employment growth.
Remember that there are many strict legal penalties and more rigid regulatory mandates for CFOs; hence it is wise for any individual considering CFO jobs to carefully analyze the various requirements and duties of this position before signing the papers.
