Chief Financial Officer - CFO

AAA

DEFINITION of 'Chief Financial Officer - CFO'

The senior manager responsible for overseeing the financial activities of an entire company. The CFO's duties include financial planning and monitoring cash flow. He or she analyzes the company's financial strengths and weaknesses and suggests plans for improvement. The CFO is similar to a treasurer or controller in that he or she is responsible for overseeing the accounting and finance departments and for ensuring that the company's financial reports are accurate and completed on time.

VIDEO

Loading the player...

BREAKING DOWN 'Chief Financial Officer - CFO'

The CFO reports to the president, but has a major say in the company's capital structure, investments and how the company manages its income and expenses. The CFO works closely with other executives and plays a major role in any company's success, especially in the long run. Becoming a CFO requires extensive financial management experience as well as educational credentials in finance and/or accounting.

RELATED TERMS
  1. Chief Legal Officer - CLO

    A publicly traded company's most powerful legal executive. The ...
  2. Comptroller

    A comptroller is a synonym for financial controller. Comptrollers ...
  3. Corporate Headquarters

    A place where a company's executive offices and executives' direct ...
  4. C-Suite

    A widely-used slang term used to collectively refer to a corporation's ...
  5. Honcho

    Slang term describing the leader, manager, chief or person in ...
  6. Incumbent

    An individual that is responsible for a specific office within ...
Related Articles
  1. Investing Basics

    The Basics Of Corporate Structure

    CEOs, CFOs, presidents and vice presidents: learn how to tell the difference.
  2. Investing Basics

    If Kennedy, Eisenhower, Alexander the Great Et Al Were Leaders in Finance

    Would Eisenhower, Roosevelt and Kissinger have made good corporate executives? What about Alexander the Great?
  3. Entrepreneurship

    Female CEOs Who Climbed The Corporate Ladder

    These women climbed the ladder and broke the glass ceiling.
  4. Professionals

    Traditional MBA Or Business Graduate Degree?

    Though an MBA is the most popular business graduate degree, there may be other options more suited to your goals.
  5. Active Trading Fundamentals

    Evaluating A Company's Management

    Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers!
  6. Professionals

    3 MBA Double Majors That Boost Your Value

    Find out how to fast track with a double major, and give you career the edge it needs.
  7. Options & Futures

    A Guide To CEO Compensation

    Make sure you assess whether a CEO has a stake in doing a good job for you, the shareholder.
  8. Professionals

    A Guide To Careers In Accounting Information Systems

    We provide an overview of the types of AIS jobs available, and the education and training requirements to enter this field.
  9. Markets

    Get Tough On Management Puff

    Company managers are often skilled at fooling investors. Be critical and don't believe the hype.
  10. Options & Futures

    Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.
RELATED FAQS
  1. Other than accounting, what does a corporate finance job involve?

    While a corporate finance job almost always involves accounting in some capacity, there are many additional job duties and ... Read Full Answer >>
  2. How are C-suite officers measured on performance?

    Evaluation of C-suite officers, especially the chief executive officer (CEO), is an important element of fundamental analysis. ... Read Full Answer >>
  3. What's the average salary of a chief financial officer (CFO)?

    While the average yearly salary of a chief financial officer (CFO) can vary based on a number of factors, the median compensation ... Read Full Answer >>
  4. How do you conduct effective social responsibility training?

    One way to provide employees with effective social responsibility training is to base training sessions on resources offered ... Read Full Answer >>
  5. Why is social responsibility important to a business?

    Social responsibility is important to a business because it demonstrates to both consumers and the media that the company ... Read Full Answer >>
  6. How important are business ethics in running a profitable business?

    A number of factors play a part in making a business profitable, including expert management teams, dedicated and productive ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  2. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
  3. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  4. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  5. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
  6. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!