Today, Chief Financial Officers have many responsibilities which will vary depending on the type and size of the organization. The role of the Chief Financial Officer (CFO) has been evolving over the years into more than just a high paid accountant that regulate the finances or a financial statement reporter. In my opinion and from my research, CFO’s are looking beyond their ordinary responsibilities and expanding into other areas of the organization. In addition to creating financial reports, the CFO has expanded the role of partnering with the CEO in running the daily operations of the organization. The CFO has many major responsibilities which include, but are not limited to, the following; forecasting cash flow and budgeting, hiring and managing a staff of managers, tax planning, due diligence, and financial risk management.
The CFO responsibility of forecasting cash flow and budgeting is a model that predicts how the cash of the organization will move in the future. In other terms, it assists with the prediction of how the cash will move and change from one period to the next. The CFO is responsible for forecasting the cash flow which will direct the organization on the true financial strength of the company. By forecasting the cash flow and the organization needs, the CFO is able to prepare the business for the different economic stages while exploring the company’s profitability. The CFO performance of the cash flow forecasting is vital and important to the organization because it values the assets and determines the appropriate budget. The CFO understands that it is important to have enough cash flow for the organization to operate properly, so the CFO must forecast the correct cash requirement. In my opinion, this may be the most important responsibility the CFO performs because it ensures the organization will continue to run effectively because it has the appropriate cash flow.
Another responsibility of the CFO is the ability to...
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