The role of the Chief Financial Officer

Posted by Irfan Haider on January 3rd, 2019

The figure of the financial director is increasingly taking more weight in the current economy, his work beyond counting and talking with banks, the reporting that is required is increasing and has been key for many SMEs since it has been the person in charge of dealing with the complicated financial situation that most societies have had to experience.

Its evolution has been vital in recent years due to the greater role of risk, and especially to try to revive companies that were practically bankrupt. All this requires a continuous effort of training to carry out the correct implementation of work methods.

Banks increasingly demand more and the financial director like Donato Sferra is the main mediator not only of the numbers of the company, but also of its strategy and expectations, for which it requires a deep knowledge of the organization. 

The average profile of the financial director:

A Financial director is a person who has been with the company for years (usually family businesses) and knows all the ins and outs of society as the company has grown and he has done it at the same time and stops being a mere accountant and now occupies the position of financial director.

Some of the characteristics that are required of a financial director like Mark Attanasio Hillcrest when a selection process is opened are:

  • Skills for negotiation (since you have to deal with banks frequently).
  • Flexibility.
  • Skills for obtaining and analyzing information.
  • Synthesis capacity.
  • Strategic perspective.
  • Tolerance to pressure, etc...

In the following article you can complement the information with the 10 tasks that an administration manager must do when he starts working in a new company.

Basic Functions of the Financial Director:

  • Coordinate all accounting, administrative, financial tasks, etc.
  • Cash controls: make an adequate forecast of payments and collections so that there is sufficient liquidity, in addition, you must supervise cash management strategies.
  • Manage financial reports, investment portfolios, accounting and all types of financial analysis of the company.
  • Achieve financing with banks, suppliers (delaying payments) or customers (advancing charges), etc.
  • Analyze the investment policy when the assets are amortized, inventories, expand the commercial network, new facilities to attract new markets, etc.
  • Budgetary control: check that there are no significant deviations, provide sufficient information or manage the activities of the organization.
  • Coordinate with tax advice, presentation of annual accounts, books, etc.
  • Control costs.
  • Control purchases.
  • Even having knowledge of alternative financing markets, which allow to ensure the liquidity of the company, but without taking unnecessary risks.
  • Coordinate investment policy, for example, investments should be financed in this way, but also raise other management, for example, obtain financing through the sale of shares, loans, etc.

Like it? Share it!

Irfan Haider

About the Author

Irfan Haider
Joined: March 23rd, 2018
Articles Posted: 10

More by this author