Most Chief Financial Officers -- or CFOs --
spend their days doing a variety of tasks, all of which help keep the company
running smoothly and in safe financial waters. In addition, these executives
ensure the company is meeting applicable regulations related to financial
disclosure, accounting, and use of funds from various sources. With the
financial health of the company at stake, take a look at some of the daily
tasks performed by CFOs.
Maintain
Accurate Historical Data
Image via Flickr by SalFalko
Past financial performance is important to
ensure a company pays the correct amount of taxes to the local, state, and
federal government. An accurate record of the company’s financial health over a
period of years also gives managers a snapshot of the effectiveness of
strategies and policies.
These are just a couple of reasons CFOs
spend time working with their staff to ensure proper accounting techniques
provide an accurate picture of past performance. Without this information, a
company would essentially guess at how to move forward, not knowing if they
should continue on the current path or try to develop new strategies.
At smaller companies and non-profit
organizations, CFOs may do much of the work themselves. However, at a bigger
firm, they typically work with professional staff and oversee the work they do
to maintain historical financial data.
Oversee
the Wallet
Besides spending time cataloguing what’s
happened in the past, the CFO also must deal with immediate financial matters.
Investing the company’s dollars requires the CFO to stay current on the best
investment options by knowing the market and different financial instruments.
Staying on top of payroll, contractual
obligations, and purchasing are also routine functions of a CFO. Watching the
timing of purchases allows the CFO to ensure appropriate cash flow. Keeping
tabs on cash flow prevents the company from getting into a situation where it
owes bills and the coffers are empty because payments owed to the company
haven’t yet arrived.
A prime example of a CFO who has spent his
career tackling these immediate money management issues is Gary Crittenden, Huntsman Gay managing partner. Before
taking his current position, he led Citigroup as CFO from 2007 to 2009. He also
spent about seven years as CFO for American Express. During his time with
Citigroup, he led the company’s day to day financial dealings through the rocky
waters of the global economic crisis. By ensuring the company fulfilled
contractual obligations and kept close tabs on its past and current financial
picture, he had a successful tenure.
Plan
for the Future
CFOs spend time almost every day thinking
about shoring up the company’s financial standing in the future. Using both
past and current data, CFOs develop forecasts and recommendations for
maintaining and growing profit.
Many of these daily tasks get performed in
meetings with various committees comprised of other top-tier management. CFOs
may travel frequently to meet with investors, managers at other global sites,
and auditors who verify the company’s accounting practices. The CFO has to
juggle many daily tasks with the end goal of helping the company make more
money.
