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.

INVESTOPEDIA EXPLAINS '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.

VIDEO

Loading the player...
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. Chief Executive Officer - CEO

    The highest ranking executive in a company whose main responsibilities ...
  6. Chief Operating Officer - COO

    The senior manager who is responsible for managing the company's ...
RELATED FAQS
  1. 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 >>
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.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center