What are CFOs?

As their title implies, Chief Financial Officers are in charge of their company’s finances. They manage funds in the present and plan for the future of the business. They work alongside other chiefs, like the Chief Executive Officer (CEO), Chief Operating Officer (COO) and Chief Information Officer (CIO) to manage all aspects of the company. CFOs can work independently, but many offer their financial expertise and ideas to the C-suite to help solve top-level organizational problems.

CFO’s roles, responsibilities and duties

Depending on the organization, some CFOs spend the majority of their time working exclusively with other accounting employees and managing the company’s finances while others work with a range of departments. The main objective of a CFO is to ensure the company is capable of paying its bills and investing in its future. Common responsibilities include:

• Reporting financials to internal and external stakeholders
• Making investments to increase the company’s capital
• Forecasting potential areas for growth within the company
• Finding strategic and financial opportunities for the company

CFOs are sometimes described as having four distinct facets — leaders, operators, controllers and strategists.

Leaders

CFOs are the leaders of all other financially focused employees in the company. They provide guidance and oversight for others in the accounting pipeline. Since they’re one of the top officials in the business, they’re also a leader for every member of the organization and must model appropriate behavior, work ethic and communication skills.

Operators

CFOs must have a strong understanding of the company’s operations. Excellent CFOs make time to meet with other C-suite executives to stay up-to-date on the business’s plans and actions. Their financial expertise and input can help company leaders make informed data-driven choices about the company’s future.

Controllers

The CFO is responsible for ensuring the company adheres to all financial regulations. They must use their knowledge to ensure the company is meeting the necessary guidelines through thoughtful financial control and planning.

Strategists

The CFO, along with other C-suite executives, strategize about the future of the company. The CFO provides realistic budgets and projections to help shape potential endeavors. Often, they also use their skills to prepare financial reports and projections for external stakeholders.

Related:Role of a CIO: What Does a Chief Information Officer Do?

Benefits of having a CFO

CFOs can improve your company’s financial outlook. Consider the benefits they offer:

• Strategy:A CFO can help you effectively strategize with your capital and investments to increase profitability and business opportunities.
• Accuracy:CFOs are expert financial analysts. They can accurately prepare reports and documents to share with internal and external stakeholders.
• Risk management:Your CFO can establish effective financial controls that limit risk and ensure your business is abiding by regulations.
• Money management:The CFO will oversee all levels of the company’s finances to make sure numbers are accurate.
• Negotiation:With their stellar financial knowledge, a CFO can help you negotiate excellent rates from lenders and great deals with other investors.
• Relationship building:Many CFOs have strong relationships with banks and investors to help your business find funding.
• Organizational management:CFOs are well-equipped to handle organizational changes like mergers, acquisitions or going public.

How to hire a CFO

Follow these steps to help you hire the perfect CFO for your organization.

1. Use an executive staffing agency

Consider hiring the services of a staffing agency that specializes in C-suite executive placement. These companies have a vast database of prospective CFOs who they can assess to find several candidates who meet your needs. This is a useful strategy if you want to fill the position quickly.

2. Enlist your network

Ask other professionals in your network if they know of any CFOs looking for new positions. Let them know that you’re hoping to hire a CFO and ask them to spread the word throughout their own networks. If you have some time before you need the spot filled, this strategy can yield excellent candidates.

3. Watch the news

Keep track of the news in your industry to see if any CFOs or potential CFOs are leaving their positions. Connect with any who might be a good fit foryour company to see if they’re interested in coming in to learn more about the company and the position.

4. Post a job opening

You can also post a job opening with a thorough and descriptive job description on your company’s website or through job finding websites. This strategy should give you a number of potential candidates to interview, but you may have to do more vetting than you would when working with a staffing agency or through a network of industry professionals.

5. Hold interviews

Once you’ve selected a candidate, hold a job interview to ensure they’re the right fit for your company. Many companies request the interviewing candidate to take an executive assessment as part of the interview and hiring process — consider doing the same. Use the job interview as a time to learn more about the candidate’s business acumen and leadership style. Common interview questions for a CFO might include:

• Describe your leadership style. How has it helped you in the past?
• How would your strengths improve this organization?
• What’s your strategy for solving complex financial problems?
• How do you see the CFO’s role within the framework of the other C-suite executives?
• What do you think the most important responsibility of a CFO is?

Related:How to Hire a Chief Financial Officer

CFOs can provide enormous financial stability to your company. Know what you expect from your CFO beyond basic financial monitoring to ensure they meet all your organizational needs.