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CFO Key Accountabilities

What is the role of a CFO?

​By Mansour Baker, SHRM-CP

Posted  26 June 2020

The role of a Chief Finance Officer (CFO) is to define the financial governance for profit, cost, and service center structures. Plan, direct and control the company overall financial plans, processes, budgeting, risk, and treasury to ensure that the Company can achieve its strategic and operating objectives set by the business strategy.

Exhibit 1

The main key accountability areas of a CFO

Understanding the key accountabilities of a CFO

Key Accountabilities

Strategic Contribution

• Provide input to the development of corporate strategy and develop the finance strategy in line with the company vision, mission, and business strategies.
• Participates as an integral member in the strategic planning process by providing objective and analytical insights on the financial impact and soundness of business decisions to the executive leadership.
• Participates in the development of the 5-year strategy plan for the company.

Financial Reporting

• Directs and oversees the preparation of the company financial reports and statements (according to accounting standards), including income statements, balance sheets, reports to internal and external stakeholders, and reports for government regulatory agencies and external/internal auditors.
• Oversees and approves the accuracy of financial statements and consolidated performance reports of the company before submitting to the CEO & Board Committee.
• Oversees preparation and generation of any ad hoc / special reports requested by the CEO & Board Committee.

Financial Reporting

• Directs the formulation of financial and accounting policies and procedures for the company and oversees execution of such policies and procedures in order to ensure top-down financial compliance across the organization.
• Leads the management of fixed asset register, accounts payable, accounts receivable and the preparation of the general ledger accounts and ensure compliance with financial policies and procedures.

Budgeting Planning & Control

• Directs the company annual budget planning process, consolidates departments and defends final annual budget plan to the CEO & Board Committee for review and approval.
• Oversees and controls the company annual budget execution and utilization.

Treasury

• Leads the treasury for the company and ensure effective implementation of policies & processes of FOREX management.
• Manages the investment of portfolio so as to maximize yield over the long term in line with the overall asset-liability management strategies. Undertakes this in accordance with liquidity needs of the company.
• Identifies risks due to exposure to foreign exchange rate fluctuations, interest rates liquidity and other counterparts. Takes diligent steps to reduce or neutralize these risks.
• Oversees Finance related activities to ensure sufficient capital is adequately available to allocate, in order to facilitate business investments and growth.

Internal & External Audit

• Oversees auditing process of the company by internal and external auditors.
• Presents final audit report to the CEO & Board Committee with observations and recommendations.

Relationship Management

• Establishes and manages effective relations with potential investors, banks, auditors, and financial bodies in order to ensure that the appropriate levels of services are obtained to the best advantage of the company meeting all obligations.
  

Continuous Improvement

• Lead and direct the continuous review and improvement of the Finance function practices taking into account international standards and changes in the business environment.

Leadership

• Ensure the effective achievement of Finance functional objectives through the leadership of the division - setting individual objectives, managing performance, developing, and motivating staff, provision of formal and informal feedback and appraisal - in order to maximize subordinate and departmental performance.

Technology

• Leads the implementation of a financial management information system and collaborates with the IT Department to acquire requisite business support systems for finance. Ensures that the global best practices in technology and financial systems are institutionalized.

Communication and Working Relationship

Internal

• Interfaces & communicates company finance performance to the CEO, and Board of Directors.
• Interfaces with the company department heads and direct reports on finance & risk related matters.

External

• Interfaces with external auditor, banks, financial bodies, vendors, and investors on finance & risk related matters.
  

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