What is the Value of a CFO in a Corporate Company?


The chief financial officer is a senior executive in the company that manages the financial action or goal for a company. The duties of CFO’s include tracking cash flow, analyze the company’s financial strengths and weaknesses, and help the company to take necessary steps.

CFO is basically a controller of the company means he is responsible for managing the finance and accounting parts. He ensures that the company financial report is accurate and submits a timely. And also deal with the taxation issue of his company.

CFO is the third-highest position in the company that handles the company’s strategic initiative and optimizes the financial performance of the company. But there are some other duties that are done by CFO include leadership, communication with the board, negotiation with suppliers and vendors of the company, and help the company to achieve the financial target.

How CFO works?

The work of CFO revolves around, giving reports to the chief executive officer (CEO) of the company for necessary inputs in the company’s investments, also in the capital structure of the company, and in company expenses. CFO works with senior managers of the company and plays a significant role in overall company growth. If the marketing department of the company wants to run a campaign for a specific purpose then CFO decides the campaign gives feasible input to the fund available for the campaign.

The CFO helps the CEO forecasting, increase ROI, and obtaining funding for various initiatives from the investor. In the financial industry CFO is a high post. Some of the works CFO do these are:-

  1. Reporting: This thing takes a lot of the CFO’s time. These responsibilities are under the controller’s group of the company. The group of professionals ready all historic financial data that is required for company shareholders, lenders, for research analytics, and regulatory bodies. This team is responsible to ensure all financial report is prepared accurately and publish timely.
  2. Liquidity: The CFO needs to ensure the company will achieve its all financial goals. It manages the cash flow of the company ineffective or efficient way. In some companies, these responsibilities are taken by the treasured group. This group is tasked with managing company cash flow and company work capital and inventory. This group is also deal with issuing of debt, managing investment that is where to invest or where not and handle all liquidity related decision of the company.
  3. Return on investment (ROI): The third thing CFO does it find the best way to take high risk-free return on investment for the company. This is where the company financial planning and analysis team helps CFO forecast cash flow. This team is helping to play a critical role in analytics and in decision making.

What is a Virtual CFO? And what is the benefit of hiring a virtual CFO:

If you are starting a start-up, there are many roles you will do straight away such as you are doing work of CEO as well as you work as marketing manager. Many startups do not have a CFO because they have a limited amount of money. CFO manages the financial activities of the company. If you start a start-up and you need CFO to take steps for company growth. So hiring a virtual CFO is best for small businesses or start-ups.

A virtual CFO is a person that offers the services of CFO, but it does its work remotely on a part-time basis through video calls or phone calls. If you are finding CFO Service in Hyderabad then you can contact USAIndiaCFO. We are the best CFO services provider all over India.