The Role and Responsibilities of the CFO

The basic responsibility of the Virtual CFO (Chief Finance Officer) is to act as a guardian of the company by taking absolute responsibility of ensuring the financial internal processes being followed. CFO’s monitors the cash flows of the company and explore the different business opportunities in comparison with the market trend. Further he helps in strategizing the financial aspects of the organization by analyzing the strengths and weaknesses and thereby leading to take corrective actions against any identified threats.

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Forecasting and Strategizing: CFO is responsible to monitor the global and domestic economy trends, in order to formulate strategy matrix and modulate business plans for meeting the business expectations. He capitalizes the business information and making it into business opportunities for future growth.

Budget Mentoring: It is the responsibility of CFO to supervise and oversee and compare the company’s actual performance with that of the estimates defined. It is his responsibility to have a vigilant approach in case he assesses material deviations from the defined standards (budgets).

Treasury and Liquidity: CFO is responsible for evaluation of Company’s present financial position, exploring the best investment opportunity considering the risk & rewards in line with available source of funding & optimum composition of capital structure.

Financial Discipline & Compliance: It is the responsibility of CFO to adhere to the timelines with respect to the financials of the company as the stakeholders entirely rely upon the accuracy & appropriateness of the financials of the company. He is responsible to prevent fraud and depict true & fair view of the financials of the Company.

Risk Management and Mitigation: The CFO is responsible for analyzing and understanding the risk involved in the company’s profile and thereby taking preventive measures for its mitigation by implementing appropriate insurance coverage and applying steadfast control systems.

Business Relations: It is the responsibility of CFO to maintain healthy and strong relation with the employees of the organization in order to identify their needs and seek full range of business solutions. He acts a mediator between the stakeholders and the board of directors by timely sharing the accurate analysis of budgets, forecasts and other financial obligations.

Financial Engineering: It is the responsibility of CFO to aggressively restructure the source of funds available with the company and allocating the same for optimum results.

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