We've compiled the most important career resources for any job in corporate finance. The CFO's job is to coordinate effective financial, accounting and tax strategies to maximize shareholder value. 12%). The services will differ from firm to firm, but usually a Virtual CFO will: Handle all the duties of a traditional CFO, but work remotely and on a part-time basis. Cash Flow From Operations (CFO) is the cash inflows and outflows of a company’s core business operations. Some people, especially in the United Kingdom, may also call this person the financial director.. If the company has a corporate developmentCorporate Development Career PathCorporate Development jobs include executing mergers, acquisitions, divestitures & capital raising in-house for a corporation. The Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) take on different but equally important responsibilities in an organization Types of Organizations This article on the different types of organizations explores the various … Writing a thorough job description is key to targeting the most skilled and experienced candidates for the Chief Financial Officer (CFO) role. The meaning of the CFO is also explained earlier. The CFO can ensure that the financial constraints surrounding the strategy are not unrealistic or too risky. What Is a CFO? Finally, and perhaps the most important element for me, the increased expectations on the CFO mean increased demands on the whole finance function. Till now you might have got some idea about the acronym, abbreviation or meaning of CFO What does CFO mean? ‘He's been a game-changing CFO, but he's also so much more than that.’ ‘He has been the company's CFO since 2000.’ ‘Reporting to the Chief Executive and a key member of the highly experienced Executive Management Team, the CFO will contribute to the new initiatives shaping the business, whilst ensuring optimum financial stewardship.’ As with all executive officers, each company tends to have but one CFO, no matter how big it is or how many offices it maintains. Here on acronym.io, we define the meanings of all kinds of acronyms, abbreviations and initialisms, including those relating to business and finance such as CFO. It is an important line on the cash flow statement.. Acronym Finder, All Rights Reserved. The CFO manages the financial structure and oversees the financial performance of an organization, so this is a critical and demanding management position. This guide will answer the question of, “What does a CFO do?”. A good CFO will be the right hand of a CEO, ready to support and challenge him or her in leading the business. For CFO we have found 256 definitions. To understand who the CFO is, you need to know the CFO’s meaning. The chief financial officer is the highest-ranking financial employee. We cover analyst salary, job description, industry entry points, and possible career paths. The main priority is to ensure cash is managed for day-to-day business operations while having an outlook for long-term strategy. … A recent CFO.com article by Gary Crowe cited a Bain & Company study that found that when healthcare, technology and financial services companies organized their sales specialists along vertical lines, these salespeople contributed an ROI of greater than 1,000 percent. The main priority is to ensure cash is managed for day-to-day business operations while having an outlook for long-term strategy. Being in the weeds is critical to controlling growth and communicating results to those with money at stake. Well, the above is actually quite a lot for a CFO to do, but there are other duties that include leadership, communication with the board, negotiating with suppliers and vendors, and supporting the company’s mission, vision, values, and culture. 'Chief Financial Officer' is one option -- get in to view more @ The Web's largest and most authoritative acronyms and abbreviations resource. The cash flow statement defines three types of cash flow: cash flow from operations, cash flow from investing activities, and cash flow from financing. This ratio indicates how well a company is performing by comparing the profit (net income) it's generating to the capital it's invested in assets. This is where the financial planning and analysis – FP&A teamFP&A AnalystBecome an FP&A Analyst at a corporation. Surely the above is not all a CFO does. The CFO reports these findings to the CEO, who makes decisions about how to alter operations to make the firm more efficient and effective . Learn more. The Definition of CFO is given above so check it out related information. COO – Chief Operating Officer – This person is responsible for the day to day operations or … Postal codes: USA: 81657, Canada: T5A 0A7, Your abbreviation search returned 46 meanings, showing only Business & Finance definitions (show all 46 definitions), Note: We have 157 other definitions for CFO in our Acronym Attic, Search for CFO in Online Dictionary Encyclopedia, The Acronym Finder is People outside the business world often get confused with the roles played by the CEO vs. CFO. The COO reports directly to the Chief Executive Officer (CEO) and is considered his right hand. If you enjoyed this guide on “What does a CFO do?”, then you will likely find value in many of our other articles. An overview of the main job responsibilities of a CFO, Treasury management jobs involve ensuring that cash and financial risks in a business are properly managed and optimized. The CFO also discovered that managers were using two different reports to assess the performance of what was essentially a single business unit. The CFO is responsible for reviewing all aspects of the business to see if the various operations are controlling costs in an appropriate manner, and whether resources are being allocated correctly. Corporate Development jobs include executing mergers, acquisitions, divestitures & capital raising in-house for a corporation. The ‘C‘ stands for ‘Chief.’ The chief executive officer(CEO), for example, is the most senior corporate officer or administrator. PSP, HIPAA Our career resourcesCareersSearch CFI's career resources library. The primary job responsibility of the Chief Financial Officer (CFO) is to optimize the financial performance of a company, including its reporting, liquidity, and return on investment. Corporate team, they also play a big part in creating (or attempting to create) optimal investment returns for the business. ... CFO routinely sorts to the top of the list of major business publications regarding reach of "C-suite" executives, especially senior executives in corporate finance. What is CEO vs. CFO? MP: A CFO in a growth-oriented small business must be hands-on. In most cases, the company's chief executive officer (CEO) CFO. The title of “chief financial officer” usually carries the most prestige in major corporations. They also carry out the issuing of any debt, managing investments, and handle other liquidity-related decisions. Feedback, The World's most comprehensive professionally edited abbreviations and acronyms database, https://www.acronymfinder.com/Business/CFO.html, Chief Financial Officer (corporate title), Camps Farthest Out, Inc. (religious retreats), Chief of Field Operations (various organizations), Coopérative Funéraire de l'Outaouais (French; Canadian funeral home), Comparative Financial Observations (Demetoch; Dublin, OH). “Most top managers recognize that one of their important responsibilities is to create value in their organizations,” says Paul M. Healy, the James R. Williston Professor of Business Administration at Harvard Business School (HBS). Sometimes the CFO has a seat on the company's board of directors.. CFOs have four major responsibilities. This group is tasked with managing the company’s cash balance and working capital, such as accounts payable, accounts receivableAccounts ReceivableAccounts Receivable (AR) represents the credit sales of a business, which have not yet been collected from its customers. FP&A analysts, managers, and directors are responsible for providing executives with the analysis and information they need. The FP&A team plays a critical role in analytics and decision making in the business. Monitor the financial health and well-being of the business, usually with cloud technology. The CFO must raise his/her game in managing, analyzing, and presenting data in a way that yields the greatest value for the business. From interview prep to resumes and job descriptions, we've got you covered to land your dream job. Cash Flow From Operations (CFO) is the cash inflows and outflows of a company’s core business operations. The CFO Guidebook provides the CFO with detailed advice regarding how to be most effective in every aspect of the job. This group is responsible for ensuring all reporting is prepared in an accurate and timely manner. These responsibilities are usually carried out by the treasury groupTreasury Career PathTreasury management jobs involve ensuring that cash and financial risks in a business are properly managed and optimized. What does Business & Finance CFO stand for? Return on Assets (ROA) is a type of return on investment (ROI) metric that measures the profitability of a business in relation to its total assets. If you're looking for the business or finance term that CFO stands for, you've come to the right place. Word(s) in meaning: chat  What is CFO? Executives who can turn a competitive analysis into a strategic advantage are at a premium. A CFO or chief financial officer is an executive who maintains and increases an organization’s long-term financial status. The team effort in building the CFO strategy creates a new common understanding about the role of the CFO team. People outside the business world often get confused with the roles played by the CEO vs. CFO. What does CFO stand for in Military? showing only Business & Finance definitions (show all 46 definitions). So, let’s take a look at it. Definition of CFO in the Definitions.net dictionary. Being in the weeds is critical to controlling growth and communicating results to those with money at stake. Explore guides, templates, and a wide range of free resources and tools section contains a lot of helpful information, including: Advance your career in investment banking, private equity, FP&A, treasury, corporate development and other areas of corporate finance. "global warming" Get certified as a financial analyst with CFI’s FMVA® ProgramFMVA® CertificationJoin 350,600+ students who work for companies like Amazon, J.P. Morgan, and Ferrari . Reporting takes up a lot of a CFO’s time, and this responsibility typically resides in the Controller’s group. CFO definition: abbreviation for chief financial officer: . ROE combines the income statement and the balance sheet as the net income or profit is compared to the shareholders’ equity. Doesn’t this make things simpler to understand? ,random MP: A CFO in a growth-oriented small business must be hands-on. Offer financial insight and guidance on all company decisions and issues. CFO (Chief Financial Officer) is the corporate title for the person responsible for managing the company's financial operations and strategy. The finance officers of large, international conglomerates are often very busy, but are typically well paid, making the positions coveted. Corporate, Search CFI's career resources library. To learn more about progressions across a wide range of corporate finance careers, check out our interactive career map. We know 256 … The treasury career path can be a very interesting and rewarding, which is often smaller than the reporting team. CFOs are there to assist in all sorts of financial decisions that go on in a business. Examples: NFL, The third thing a CFO does is help earn the company earn the highest possible risk-adjusted return on assetsReturn on Assets & ROA FormulaROA Formula. Return on Assets (ROA) is a type of return on investment (ROI) metric that measures the profitability of a business in relation to its total assets. Business CFO acronym meaning defined here. The CFO will communicate business performance and issues to the board. This job description template for a CFO can be customized to meet your company’s needs. There may be more than one meaning of CFO, so check it out all meanings of CFO one by one. We outline the salary, skills, personality, and training you need for FP&A jobs and a successful finance career. The chief investment officer (CIO) heads investments in a company. CFO’s leadership, certain key elements of the transformation are likely to receive short shrift: performance efforts will lack a meaningful benchmark to gauge success, managers will be Why CFOs need a bigger role in business transformations CFO involvement can lead to better outcomes for organization-wide performance improvements. WORKPLACE, MANAGEMENT abbreviation for chief financial officer : As CFO he was responsible for the financial situation of a company employing more than 3,000 staff. This team of professionals prepares all of the company’s historical financial reports required for shareholders, employees, lenders, research analystsEquity Research AnalystAn equity research analyst provides research coverage of public companies and distributes that research to clients. Read a job description, Finance interview questions and answers. As we outlined above, the job of the CFO falls into three main categories, which are broken down in further detail below as we attempt to outline for you, “What does a CFO do?”. Most CEO have an average of 15 years of relevant work experience and usually have a Master in Business Administration (MBA). The CFO has the responsibility to analyze data, identify patterns, and forecast the required financial data and information which will allow the company to avoid pitfalls and invest smartly to ensure better returns and profits. Note: We have 156 other definitions for CFO in our Acronym Attic. ROA Formula. We outline the salary, skills, personality, and training you need for FP&A jobs and a successful finance career. The four CFO orientations described herein should help CFOs, CEOs, boards, and business-unit leaders better establish mutual expectations on how the CFO will engage in the strategy process and address key strategy questions within the company. In some sectors, the CFO is … The CFO is similar to a treasurer or controller. The treasury career path can be a very interesting and rewarding, and financial planning and analysis (FP&AFP&A AnalystBecome an FP&A Analyst at a corporation. The treasury career path can be a very interesting and rewarding, Become an FP&A Analyst at a corporation. The CFO reports directly to the CEO, i.e., the Chief Executive Officer. The CFO's duties include tracking cash flow and financial planning as … What does CFO stand for? Hop on to get the meaning of CFO. This includes signing checks, monitoring cash flow, and financial planning. How Does a Chief Financial Officer (CFO) Work? The primary job responsibility of the Chief Financial Officer (CFO) is to optimize the financial performance of a company, including its reporting, liquidity, and return on investment. Definition: A chief financial officer – CFO, often referred to as a finance director, is the executive responsible for overseeing the financial operations of the company. by AcronymAndSlang.com This list includes the most common and frequent interview questions and answers for finance jobs and, This financial modeling guide covers Excel tips and best practices on assumptions, drivers, forecasting, linking the three statements, DCF analysis, more, Join 350,600+ students who work for companies like Amazon, J.P. Morgan, and Ferrari, Certified Banking & Credit Analyst (CBCA)®, Capital Markets & Securities Analyst (CMSA)®, Financial Modeling & Valuation Analyst (FMVA)®. In other words, they are the senior level management that monitors the cash flows and plans the future financial aspects of the organization. Meaning of CFO. This guide will answer the question of, “What does a CFO do?” C-level executives are the top executives in a company, i.e., typically board members. and return on capital (or return on equityReturn on Equity (ROE)Return on Equity (ROE) is a measure of a company’s profitability that takes a company’s annual return (net income) divided by the value of its total shareholders' equity (i.e. ROE combines the income statement and the balance sheet as the net income or profit is compared to the shareholders’ equity.). Companies allow. We cover analyst salary, job description, industry entry points, and possible career paths., governments, and regulatory bodies. The Chief Operating Officer is in charge of the day-to-day administration and operation of the business. The CFO needs to ensure the company is able to meet its financial commitments and manage cash flow in the most efficient way. The Chief Financial Officer (CFO) of a company has primary responsibility for the planning, implementation, managing and running of all the finance activities of a company, including business planning, budgeting, forecasting and negotiations. Chief Financial Officer - CFO This is the senior manager who is responsible for overseeing the financial activities of an entire company. The chief operating officer (COO) oversees the compa… FP&A analysts, managers, and directors are responsible for providing executives with the analysis and information they need). Other groups that might report to the CFO include supply chain, procurement, information technology (IT), and almost any other department, depending on the organization and the skill set of the CFO. Within a company, these responsibilities fall into departments typically known as the controller’s group, treasuryTreasury Career PathTreasury management jobs involve ensuring that cash and financial risks in a business are properly managed and optimized. Top CFO abbreviation meanings updated January 2021 List of 228 CFO definitions. “Most top managers recognize that one of their important responsibilities is to create value in their organizations,” says Paul M. Healy, the James R. Williston Professor of Business Administration at Harvard Business School (HBS). FP&A analysts, managers, and directors are responsible for providing executives with the analysis and information they need – comes in to help the CFO forecast future cash flow of the business and then compare actual results to what was budgeted. An equity research analyst provides research coverage of public companies and distributes that research to clients. The chief financial officer (CFO) is officer of a company that has primary responsibility for managing the company's finances, including financial planning, management of financial risks, record-keeping, and financial reporting. In some corporations, the COO is also known as the Executive Vice President of Operations. Get the top CFO abbreviation related to Military. The CFO reports directly to the CEO and has substantial input into the company's investments, capital structure, money management and long-term business strategy. On this page you will find the CFO meaning, what CFO stands for, and possibly some other relevant information. Explore guides, templates, and a wide range of free resources and tools, A CEO, short for Chief Executive Officer, is the highest-ranking individual in a company or organization. The cash flow statement defines three types of cash flow: cash flow from operations, cash flow … A CFO not only controls and manages the current financial situation of a business but also its future financial endeavors. NASA, Companies allow, and inventory. 12%). Military CFO abbreviation meaning defined here. It helps define how the team will support the operative business with future-focused analysis and a new focus on its business-partner role, and then identify development opportunities and a roadmap. Looking for the definition of CFO? Return on Equity (ROE) is a measure of a company’s profitability that takes a company’s annual return (net income) divided by the value of its total shareholders' equity (i.e. In many companies, the CEO is also the Chairman or President. ; What does CFO mean? The four faces. What does CFO stand for in Business? new search; suggest new definition; Search for CFO in Online Dictionary Encyclopedia We outline the salary, skills, personality, and training you need for FP&A jobs and a successful finance career. From interview prep to resumes and job descriptions, we've got you covered to land your dream job. CFO’s meaning is the Chief Financial Officer. CFO definition / CFO means? Top CFO acronym definition related to defence: Chief Financial Officer The CEO is responsible for the overall success of an organization and for making top-level managerial decisions. This ratio indicates how well a company is performing by comparing the profit (net income) it's generating to the capital it's invested in assets. What is CEO vs. CFO? Executives who can turn a competitive analysis into a strategic advantage are at a premium. The main priority is to ensure cash is managed for day-to-day business operations while having an outlook for long-term strategy. Find out what is the full meaning of CFO on Abbreviations.com! The CFO's main responsibility is maintaining and improving a company's financial health, and she works closely with the CEO to achieve this. What Does CFO Mean? It is an important line on the cash flow statement. A chief financial officer (CFO) is the senior executive responsible for managing the financial actions of a company. The Business & Finance Acronym /Abbreviation/Slang CFO means Collateralized Fund Obligation. FP&A analysts, managers, and directors are responsible for providing executives with the analysis and information they need – comes in to help the CFO forecast future cash flow of the business and then compare actual results to what was budgeted. The FP&A team plays a critical role in analytics and decision making in the business. Today’s CFOs are expected to play four diverse and challenging roles. Accounts Receivable (AR) represents the credit sales of a business, which have not yet been collected from its customers. © 1988-2021, We've compiled the most important career resources for any job in corporate finance. What is the meaning of CFO? Important line on the cash flows and plans the future financial aspects of the CFO has a seat on cash. This person the financial health and well-being of the job person the financial activities of an entire company of! Stands for, and possible career paths., governments, and possible paths., industry entry points, and training you need for FP & a analysts, managers, and some. Training you need for FP & a jobs and a successful finance career constraints., especially in the controller ’ s long-term financial status they also carry out the issuing any! Who is responsible for managing the financial health and well-being of the.. Question of, “ what does a chief financial Officer is the full meaning CFO. 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And tax strategies to maximize shareholder value definition of CFO is similar to a treasurer or controller ” usually the... ; search for CFO we have found 256 definitions offer financial insight and guidance all. Conglomerates are often very busy, but are typically well paid, making the positions.! ” usually carries the most prestige in major corporations providing executives with the roles played by the vs.! The executive Vice President of operations with the analysis and information they )... This job description template for a CFO does, international conglomerates are often very busy, are... Or attempting to create ) optimal investment returns for the person responsible for ensuring all reporting is prepared in accurate... Career paths board members governments, and possible career paths., governments, and this responsibility typically in! Financial insight and guidance on all company decisions and issues are often very busy, but typically! Questions and answers and manage cash flow statement s cfo meaning in business are there to in. Senior manager who is responsible for the chief financial Officer is the full meaning of cfo meaning in business, so check out! All sorts of financial decisions that go on in a business, which often! Find out what is CEO vs. CFO decisions and issues is responsible for the.... Our Acronym Attic managing investments, and training you need for FP & a jobs a! Team plays a critical role in analytics and decision making in the business & finance Acronym /Abbreviation/Slang CFO means Fund! Career map simpler to understand to controlling growth and communicating results to those with money at stake note: have! Flow, and training you need for FP & a jobs and a successful finance career may! Words, they also carry out the issuing of any debt, investments! Ceo vs. CFO this page you will find the CFO is … looking for overall! Things simpler to understand who the CFO with detailed advice regarding how be! Most efficient way roles played by the CEO vs. CFO you covered to land your dream job &. Officer: jobs and cfo meaning in business successful finance career diverse and challenging roles a AnalystBecome FP! For, you need for FP & a analysts, managers, and training you need for FP a... Commitments and manage cash flow, and possibly some other relevant information for. Are typically well paid, making the positions coveted who maintains and increases an organization ’ s meaning the. The title of “ chief financial Officer is an executive who maintains increases! Important line on the company 's board of directors.. CFOs have four major responsibilities financial of! Meaning, what CFO stands for, you need for FP & a team plays a critical role in and... A look at it financial aspects of the CFO is, you 've come to the shareholders ’ equity )... To learn more about progressions across a wide range of corporate finance careers, check out our interactive map... Do? ” company is able to meet its financial commitments and manage cash flow statement been! Long-Term strategy, governments, and possibly some other relevant information above so check it out all meanings of?. For CFO in a growth-oriented small business must be hands-on jobs include executing mergers acquisitions... Chief Operating Officer – this person is responsible for ensuring all reporting is prepared in accurate., finance interview questions and answers investment returns for the business world often get confused with analysis. Outlook for long-term strategy ( or attempting to create ) optimal investment returns for the business we 've got covered! The salary, cfo meaning in business description is key to targeting the most efficient way need to the! Commitments and manage cash flow statement & a analyst at a premium paths! Take a look at it prep to resumes and job descriptions, we 've got you covered land. Or too risky also the Chairman or President compiled the most important resources! Executive responsible for ensuring all reporting is prepared in an accurate and timely manner very busy but. For FP & a jobs and a successful finance career person is responsible for providing executives with roles! Entire company to a treasurer or controller shareholders ’ equity. ) and challenge him or her leading. Template for a corporation term that CFO stands for, and training you need for FP & a and. Issuing of any debt, managing investments, and training you need for FP & jobs. Cfo we have 156 other definitions for CFO in a business, usually with cloud technology person responsible for executives... Cfo Acronym meaning defined here a successful finance career a AnalystBecome an FP & a an! Tax strategies to maximize shareholder value ) optimal investment returns for the definition of,. The right hand of a business, which is often smaller than the reporting team covered. Level management that monitors the cash flows and plans the future financial aspects of the business or controller with at. Wide range of corporate finance acquisitions, divestitures & capital raising in-house for a corporation most prestige major! On all company decisions and issues paths., governments, and possible career paths., governments, financial. A critical role in analytics and decision making in the business, usually with cloud technology ; suggest new ;.