The abbreviation CFO stands for Chief Financial Officer, who is an official whose responsibilities include managing financial activities of companies. The financial director also carries out business planning, monitors the movement of finances, analyzes the financial condition of the company, its strengths, and weaknesses in this regard, and makes proposals for correcting the current situation.
Explanation:
The area of activity of the financial director includes almost all operations related to the finances of the company since CFO is responsible for its financial condition. In the finance-related industry, the position of commercial director is the highest in the company, while in other industries, CFO usually takes third place in importance. The financial director conducts financial planning, risk management, maintains financial reporting, is responsible for data analysis. The CFO is also responsible for managing the accounting and financial departments. CFO is the chief financial representative of the company and usually reports directly to the chief executive officer and the board of directors, in which there may be a seat for him or her. The CFO has a significant contribution to the capital structure and investment of the company.
Sometimes the abbreviation for the position of financial director varies depending on his additional tasks or country of use. For example, there is an abbreviation CFOO, denoting the status of a chief financial officer and chief operating officer. At the same time, in the UK, a person holding a similar role is called the finance director (FD). The CFO, following its regulation, provides support and assistance to the Chief Operating Officer (COO) on all tactical and strategic issues related to cost-benefit analysis, forecasting, and budget management. CFO also works directly with senior managers, and the overall success of the company in the long run directly depends on their successful cooperative work.