What do chief financial officers do?


Quick Answer

Chief financial officers perform multiple tasks, including developing organizational strategies in consideration of budgets and expenditures, predicting future budgetary expenses, maximizing returns on investment and monitoring financial performance. Chief Financial Officers manage finances for many organizations, from small family-owned shops to large multi-national corporations. They act as forecasters and watchdogs, keeping close track of financial transactions and advising future expenditures.

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Full Answer

Chief financial officers assume responsibility for managing funds in different parts of the organization. They help the human resources department by setting and enforcing policies and procedures, and even provide oversight on employees' performance. These officers oversee compensation for all employees and manage bonuses and raises. They play roles in company production and sales too, predicting costs associated with product material acquisition and product production. Chief financial officers also remain abreast of economic trends and activities, alerting management of changes in costs of supplies, transportation and other expenses affecting budget.

These officers also advise organizations on investments and maintain relationships with partners in the financial community. They keep management informed of current expenses, suggesting ideas for improving financial efficiency when appropriate. Due to the changing nature of finances, CFOs often engage in continual training, receiving ongoing education through literature, networking events and maintaining personal connections.

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