The chief financial officer is primarily responsible for which two functions?

Q: What are the two main organization that report to the chief financial officer in a multinational corporation?

The treasurers office and the controllers office are the two primary organizational groups that report directly to the chief financial officer. The controllers office handles cost and financial accounting, tax management, and management information systems.

The Chief Financial Officer (CFO) of a company has primary responsibility for the planning, implementation, managing and running of all the finance activities of a company, including business planning, budgeting, forecasting and negotiations. The CFO job description should also extend to obtaining and maintaining investor relations and partnership compliance.

Inhaltsverzeichnis Show

CFO duties and responsibilities of the job
CFO job qualifications and requirements
CFO Salary Guide
Who is higher than the CEO of a company?
What is a CFO?
Is the CEO higher than the CFO?
The difference between CEO and CFO
Frequently asked questions
What are the two main skills a CFO needs?
Is the CFO responsible for administration?
What are the two main organization that report to the chief financial officer in a multinational corporation?

CFO duties and responsibilities of the job

As part of an executive management team, the CFO will have interaction with various members of a company, both senior and junior. A CFO job description should include:

Providing leadership, direction and management of the finance and accounting team
Providing strategic recommendations to the CEO/president and members of the executive management team
Managing the processes for financial forecasting and budgets, and overseeing the preparation of all financial reporting
Advising on long-term business and financial planning
Establishing and developing relations with senior management and external partners and stakeholders
Reviewing all formal finance, HR and IT related procedures

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CFO job qualifications and requirements

The role of CFO is very senior, hence a high level of experience is expected for anyone applying for this role. A Bachelor’s degree in the following will be expected for this role:

Accounting
Finance or Economics

An MBA or CPA is also highly desirable. At least 10 years' experience in the finance industry and managing a team is a must – with examples of when they have demonstrated excellence in the workplace. A CFO must display a cohesive ability at interpersonal and communication skills, both verbally and written. They must be able to engage with staff at all levels of the organisation and exercise sound judgement.

Robert Half is one of the leading CFO recruitment agencies in New Zealand. View our latest CFO jobs here.

CFO Salary Guide

Are you a hiring manager or changing jobs? Access the Robert Half Salary Guide and view salary benchmarking data for CFO and Finance and accounting trends.

The ‘CEO’ meaning is Chief Executive Officer – the leader of the C-suite team and, by extension, the organization as a whole. CEOs are the ones primarily responsible for company strategy, mission and organization.

Who is higher than the CEO of a company?

Usually, CEOs report to the board of directors, a group of internal and external members supervising management and large-scale decision-making in the organization. The CEO is usually an internal member (or inside director) and may be the chairman or chairwoman of the board.

What is a CFO?

The ‘CFO’ meaning is Chief Financial Officer – the head of the finance department of an organization. They’re responsible for overseeing financial operations, budgeting and financial reporting.

Is the CEO higher than the CFO?

Yes, the CFO is one of the positions who reports to the CEO. The CFO may often be a member of the board of directors, too.

The difference between CEO and CFO

By their respective definitions, their differences lie on the scope and level of their responsibilities. Here are 8 principal differences between the CEO and CFO positions:

CEO vs CFOCEOCFOLeads the organization and oversees all departmentsLeads and oversees the finance departmentIs responsible for the strategy of the organization and sees the big pictureResponsible for supporting the organization’s strategy with financial resources and creates company-wide budgetsHas broad scope of duties including managing operations and public relations, making business decisions and leading changeHas a narrower scope of duties than the CEO, focusing only on activities relevant to the finance department including hiring, training, operations, and communicationsEvaluates business risks and gainsEvaluates financial risks and gainsLiaises with all stakeholdersLiaises with stakeholders when it comes to finances (e.g. bankers, investors)Finds ways to ensure profitability and corporate successMonitors profitability and enables corporate successIs ultimately accountable for overall organizational performanceIs ultimately accountable for financial planning and reportingMay come from any background (including sales, operations etc.)Usually comes from a finance / accounting background

So generally, CEOs are responsible for steering the organization to overall success (including increased revenue, market share, brand awareness, etc.) while the CFO is responsible for ensuring the organization has the right financial resources in place to achieve its goals. Both are high-ranking officials that have significant impact on the overall management and direction of the organization.

For more see our CEO job description and CFO job description.

Looking to hire C-suite executives? Check out our list with the best job boards for executives.

Frequently asked questions

What is a CFOs role?

The CFO is in charge of an organization's finances. They are responsible for tracking cash flow and planning, analyzing strengths/weaknesses to prepare a strategic direction from which they can take appropriate action(s).

Is a CFO higher than a VP?

The Chief Financial Officer (CFO) of an organization is not higher than the C-suite members. The "CEO," for example, reports to their superior in charge while other top executives report directly under them as a Vice President would do.

What is the highest position in a company?

The CEO of a company is at the highest level, and they head up C-level members such as the COO, CTO, etc. They also rank higher than vice presidents in many cases.

What are the two main skills a CFO needs?

Essential CFO skills Chief executives possess the following qualities: Communication. Decision-making. Leadership.

Is the CFO responsible for administration?

Depending upon the company's size, structure, and diversification, the role of the CFO may encompass a wide variety of responsibilities and functions which include the management and administration of financial, internal control, and accounting issues, in addition to acting as an external interface to the investment ...

What are the two main organization that report to the chief financial officer in a multinational corporation?

The treasurer's office and the controller's office are the two primary organizational groups that report directly to the chief financial officer. The controller's office handles cost and financial accounting, tax management, and management information systems.