Jun 20, 2022

What Are the Responsibilities of a Business’s CFO?

What are the CFO Responsibilities

Any business’s chief financial officer (CFO) plays a critical role in the growth and success of an organization.

While most business owners know that a CFO manages financial accounts for a business, the modern CFO has responsibilities that truly steer the direction of a brand’s success.

5 Responsibilities of a Modern CFO

Let’s examine 6 of the most critical responsibilities of a CFO and what your organization can do if it struggles to fill this necessary position.

Cash Flow Control

A CFO’s primary responsibility is to know the ins and outs of a business’s cash flow. This knowledge, accompanied by qualified experience, allows a CFO to maintain the financial authority of an organization and ensure all purchases, payments, and credits are accounted for as daily operations ensue.

Accurate Financial Reports

Budgeting and expense control is essential, but a CFO must be able to organize finances in a presentable report at a given time.

Financial reporting gives a snapshot of a business’s financial health at any specific time. The CFO is responsible for creating accurate quarterly and annual financial statements that provide a reliable paper trail that owners can provide to shareholders and the government when necessary.

Understand Your Company’s Liabilities

Contracts, business tax obligations, leases, and insurance policies are all liabilities that a CFO needs to be on top of. These types of liabilities are why no business should ever be without a qualified CFO on its side.

Financial and legal disasters can strike unexpectedly, and your CFO must understand how to approach a given situation and help your organization come out of it unscathed.

Drive Your Company Beyond Books and Records

Accounting is a critical responsibility for a CFO. Still, the modern CFO takes an organization’s knowledge and uses it to become a strategist who aids in making long-term decisions that map out the company’s future.

A great CFO uses company knowledge to help raise capital for expansion, establish strategic benchmarks, and maintain essential shareholder relations that impact a company’s growth.

Establish Financial Relationships

Communication between investors and financial institutions is vital for any CFO. A CFO is responsible for loan applications and ensuring that a business has adequate funds to borrow when it wants to.

A solid line of communication between a CFO and the financial powers that fund the business builds rapport and helps speed up important financial decisions.

How Can a Fractional CFO Help Your Company?

Whether your business is a startup with limited funds or in-between CFOs, you cannot afford to let this position remain unfilled. A company without a CFO is a ship without a rudder, and it won’t take long to run aground and stall out.

OSMEAC Solutions’ fractional CFO services ensure your business stays afloat without the hiring process’s inflated costs and time consumption.

Our contract services give you a CFO when you need one and help you save money while experiencing success.

Push Forward in Your Industry With OSMEAC Solutions

Contact OSMEAC Solutions today to learn more about our fractional CFO services and how we can bring financial stability to your brand. We’re ready to help you gain your financial footing.