The chief executive officer is responsible for managing the finances of a company by ensuring that risks are managed there are financial plans our records are kept and financial reports are released in a company.
The work of the chief financial officer is to make capital structure Decisions of our organization. The capital structure of an organization allows the management to understand the kind of funding’s the company uses to finance its overall activities undergrowth. In a company, the debt and equity distribution are what make up the finances of the company. The chief financial officer of the company helps to carefully balance between the Equity and the debt that a business uses to finance its assets and day-to-day operations and also for future growth.The CFO ensure that there is a capital investment and ensure strategic growth plan and fundamental investment models year-to-year to ensure that the company is in a good state for growth and day-to-day operation.
Another thing that is the CFO does for an organization is to ensure that there is risk management. Risk management can be said to the process of forecasting financial risks and coming up with procedures to avoid and minimize the impact of these risks in an organization. Due to the role of executing strategies in a company, the CFO is the one responsible for identifying assessing managing and integrating risks in the corporate 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 and ensures that audits and reporting is done correctly in an organization. The importance of auditing is to ensure that the company complies with the laws and regulations and also ensures that there are accurate and timely Financial Reporting and data collection for the CFO to come up with reports that show the financial status of the organization. Auditing is very important because it helps an organization to show and ensure that it complies with the rules and regulations and also ensures there is timely and accurate Financial Reporting and data collection which helps the CFO to come up with reports are to show the financial status of their organization. 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. The CFO should also ensure that he shares his milestones with the investors and also the potential investors of the company so that they may know are the Milestone you are at and keep a track on it.