What is a CFO? 

A CFO is the top financial executive and plays a crucial role in managing your company’s financial activities. Traditional CFO tasks include preparing financial statements, creating budgets, making investments, and ensuring the numbers add up. Today, the CFO’s responsibilities encompass more strategic aspects and largely involve advising on the company’s direction with a focus on risks and future opportunities. Therefore, it is not enough to only have a grasp of the financial history; you must also be able to think more commercially and strategically. 

As a CFO, you will typically report to the Chief Executive Officer (CEO) and work closely with the board to ensure that the company’s financial goals and policies support its overall business strategies. 

A Group CFO refers to a finance director who is responsible for the finances of a large company or group, where multiple companies fall under the same umbrella. This entails a broader range of tasks, including coordination and consolidation of financial reports from the various companies, ensuring compliance across the group, and strategy development. A Group CFO must therefore have in-depth knowledge of the various markets in which the group’s companies operate and be able to navigate complex financial landscapes. 

In practice, this means that – while a CFO’s focus is on the finances of a single company – a Group CFO must have an overview and coordinate the finances across multiple companies within a group structure. Often, the role of a Group CFO involves more complex strategic and managerial challenges, as it involves balancing the various companies' needs with the group’s overall goals. 

CFOs in smaller companies may have a more hands-on role, directly handling daily financial operations – ranging from bookkeeping to financial reporting. They work closely with the CEO to develop budgets, improve profitability, and identify cost reduction opportunities. They also ensure that all financial transactions comply with applicable laws and internal policies. 

In technology companies, the CFO may be deeply involved in developing financial models for new products and services, as well as assessing investments in research and development. They are often responsible for raising capital through various financing channels and optimizing the company’s capital structure. 

In large, multinational companies, CFOs will typically lead a team of financial specialists and focus on developing long-term financial strategies. They play a key role in capital management, mergers and acquisitions, and in building relationships with investors and other financial stakeholders. They also oversee the company’s financial risk management and ensure compliance with international financial regulations. 

There are many different descriptions of the CFO role, and they can vary depending on the company’s size, industry, and culture.