The CFO of a company is a person who is responsible for managing the company’s finances Financial Planning managing of financial risk keeping records and also providing Financial Reporting.
The CFO is in charge of the capital structure of an organization. The capital structure of an organization gives an understanding of the kind of fundings that the company uses to fund its activities and to ensure that there is growth. The company structure is all about the particular distribution of debt and equity that makes up the finance of the company. The chief financial officer is in charge of balancing the Equity and debt carefully that a business uses to finance its assets the day-to-day operations and also for future growth. It is the work of the CFO to ensure that the company has capital investments and her strategic growth plans and fundamental investment models which will enable the organization to run day-to-day and also for future growth.
It is the work of the CFO to ensure that risks are managed in an organization. When we talk of risk management it is where there are the focus of financial risks and the CFO ensures that there are procedures that are put in place to avoid or minimize the impact of those risk in an organization. The CFO is in charge of identifying assessing managing and integrating risks in the organization strategy. It is, therefore, the work of a CFO to ensure that financial risks compliance risks and operational risks and also liquidity risks and many other risks are mitigated to ensure that the company’s bottom line is secured.
The CFO ensures that there are proper auditing and reporting of financial work of an organization. The work of a CFO is to come up with audit and reporting for ensuring that the organization complies with the rules and regulation of finances and also ensures accurate and timely Financial Reporting and collection of data. It is the work of the CFO to ensure that he mitigates the avoidable circumstances concerning the financial stability of the organization and about the Audit and reporting issues.
The CFO ensures that there is an investor relationship between the organization and the investors. There being two types of an analyst at is the buy-side and the sell-side the CFO needs to allocate enough time to communicate with them and no whom are they should continuously focus on depending on their interest in your business. The CFO should ensure that he allocatetime effectively between the buy-side and the sell-side investors so that he may pay total attention of what they want and also to create additional demand in your stock in the event of a potential exit. Giving your investors your milestone on the progress of the company is very important because they will keep track of where you are to where you’re going and this will build confidence about their investment.