In an enterprise, there are important senior management positions: CEO, CIO, CHRO, CMO and even CFO. So what is CFO? What is the work of the CFO.
What is CFO?
CFO is the abbreviation of Chief Finance Officer – the term used to refer to the position of finance director in a business or corporation. This position is quite high, playing an important role for the operation and development of the company.
CFO together with CPO (Chief Production Officer), CIO (Chief Information Officer), CCO (Chief Customer Officer), CHRO (Chief Human Resources Officer) are effective supporters of CEO – CEO.
CFO manages corporate finance
- Manage and make necessary spending plans for businesses
- Monitor the financial Budget the implementation department
Exploiting and using the company’s capital effectively
- Prepare investment plans, use the capital of the business on the basis of ensuring that the financial system always rotates and operates well.
- Market research, forecasting possible financial risks
The CFO is in charge of contributing to the plan, giving opinions to the CEO and the board of directors to make decisions regarding investment and finance.
How is CFO different from the chief accountant?
Working together with the financial affairs of the company, so many people misunderstand the work of CFO and chief accountant. CFO and chief accountant are completely different.
CFO is the chief financial officer, the head of an important part of the business. The chief accountant is only the head of the accounting department – part of the finance and accounting section. At the same time, the chief accountant works under the CFO.
Chief Accountant oversees the company’s accounting-related issues. In particular, including matching papers, accounting books, instructions for employees.
Meanwhile, CFO has many roles that the chief accountant cannot. It is managing the investment, using the company’s money. In other words, CFOs work directly with money, can use and control the cash flow of businesses, can help companies make money. Chief accountant does not.
Currently, in Vietnam, not every company has a separate CFO. Instead, this position will be concurrently held by the CEO or another person. The role and work of CFO is difficult to make clear with the CEO.
However, in large businesses, foreign invested enterprises, CFO is an important position. Those who hold this position, in addition to having a good professional qualification, must also be the one who achieves the trust of their superiors. Because they are the direct holders of investment rights and use of financial resources – the most important factor in business operations.