Session 3

Financial Controllership
Session 3
CFO: From controller to facilitator of change.
The Chief Financial Officer
- An officer of a company or organization that is assigned the primary responsibility
for managing the company's finances, including financial planning, management
of financial risks, record-keeping, and financial reporting.
- refers to a senior executive responsible for managing the financial actions of a
company. The CFO's duties include tracking cash flow and financial planning as well
as analyzing the company's financial strengths and weaknesses and proposing
corrective actions.
CFO QUALIFICATIONS
A minimum of 8, preferrably 10, years experience in a senior role.
CPA designation preferred.
Masters degree in Accounting, Finance or Business.
Up to date knowledge of current financial and accounting computer

applications.
Excellent verbal, analytical, organizational and written skills.

What Does a Chief Financial Officer (CFO) Do?
- responsible for a company's past and present financial situation,

and is an integral part of a company's management and financial future.
- has multiple duties, from financial reportage to deciding where and

when to invest company funds.
- oversees the capital structure of the company, determining the best

mix of debt, equity, and internal financing.
- Addressing the issues surrounding capital structure is one of the

most important duties of a CFO.
Major Components of a CFO's Job
1. Controllership duties
- responsible for presenting and reporting accurate and timely

historical financial information of the company.
All stakeholders in the company, including shareholders, analysts,

creditors, employees, and other members of management, rely on the
accuracy and timeliness of this information.
- It is imperative that the information reported by the CFO is accurate

because many decisions are based on it.
Treasury duties
- responsible for the company's present financial condition, so they

must decide how to invest the company's money, taking into
consideration risk and liquidity.
- oversees the capital structure of the company, determining the

best mix of debt, equity, and internal financing.
- Addressing the issues surrounding capital structure is one of the

most important duties of a CFO.
Economic strategy and forecasting
- responsible for a company's past and present financial

situation, they are also a key player in a company's
future growth potential.
- must be able to identify and report what areas of a

company are most efficient and how the company can
capitalize on this information.
How to be a successful CFO?
- Analytical aptitude. Advanced analytics fuel decision-making,

steer your company's growth curve, and limit instability. ...
- Risk assessment skills. ...
- Innovation management. ...
- Leadership skills. ...
- Strategic mindset. ...
- Communication and collaboration. ...
- Business intelligence.
CFO RESPONSIBILITIES:
- Cash Flow. ...

- Company Liabilities. ...
- Company Performance. ...
- Department Supervision. ...
- Financial Relationships. ...
- Finance or Raising Capital. ...
- Financial Obligations. ...
- Record Control.
What does a CFO do on a daily basis?
A Chief Financial Officer's (CFO) daily responsibilities

include such as building financial models, analyzing and
preparing financial statements, and reconciling income
and expenses.
What Are the Top Ten CFO Responsibilities?
1. Cash Flow
- to control the cash flow position throughout the company, understand

the sources and uses of cash, and maintain the integrity of funds,
securities and other valuable documents.
- have custody of, and disburse the company’s monies and securities.
- authority to establish accounting policies and procedures for credit

and collections, purchasing, payment of bills, and other financial
obligations.
- Cash is king and the flow of cash, or cash flow, is the most important
job a new CFO has in any company.
2. Company Liabilities
After cash flow, part of the new CFO responsibilities is to

understand all of the company’s liabilities. A company has
many legal contracts, statutory & tax obligations, hidden
liabilities in the form of contingencies, leases, or insurance
summaries, and expectations from loan covenants and/or
the board of directors. As a CFO, if you’re not watching out
for the liabilities, who is?
3. Company Performance
- understand the company business model for

generating customer value and translate the
operational metrics into measures for
performance.
- scorekeeper using tools like the balanced

scorecard, dashboards, and financial statement
ratio analysis to communicate both the
company’s expected and actual financial
performance.
4. Department Supervision
- In a small organization, the CFO is the supervisor

of Accounting, Finance, HR, and IT.
- In a larger company, the CFO responsibilities may only

include the Accounting and Finance functions.
Either way, the new CFO supports the company’s accounting

and financial functions using job descriptions, policies, and
procedures, and methods for automating document control.
5. Financial Relationships
- establish and maintain lines of communication with investment

bankers, financial analysts, and shareholders in conjunction with
the President.
- administer banking arrangements and loan agreements and

maintain adequate sources of capital for the company’s current
borrowings from commercial banks and other lending
institutions.
- In addition, you invest the company’s funds and administer

incentive stock option plans.
6. Finance or Raising Capital
- establish and execute programs for the provision

of capital required by the company, including negotiating the
procurement of debt and equity capital and maintaining the required
financial arrangements.
- coordinate the long-range plans of the company, assess the

financial requirements implicit in these plans, and develop
alternative ways in which financial requirements can be satisfied.
7. Financial Obligations
- need to approve all agreements concerning

financial obligations, such as contracts for raw
materials, IT assets, and services, and other actions
requiring a commitment of financial resources.
8. Record Control
- responsible for the financial aspects of all company transactions

including real estate bids, contracts, and leases.
- provides insurance coverage, as required, ensures the maintenance

of appropriate financial records, prepares required financial
reports, insures audits are completed in time and statutory book
closing occur.
- ensuring company compliance with financial regulations and

standards, like the IRS Tax Code, and GAAP (and soon, IFRS).
9. Shareholder Relations
- analyzes company shareholder relations policies,

procedures, and information programs,
including the annual and interim reports to
shareholders and the Board of Directors,
- recommends to the President new or revised

policies, procedures, or programs when needed.
10. Budgeting and Expense Control
Budgets are a fact of life, and the CFO is responsible

for overseeing the budget process, collecting the
inputs, and comparing the company’s actual
performance with estimates (the budget).

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Financial Controllership

A minimum of 8, preferrably 10, years experience in a senior role.

CPA designation preferred.

Masters degree in Accounting, Finance or Business.

Up to date knowledge of current financial and accounting computer

Excellent verbal, analytical, organizational and written skills.

- responsible for a company's past and present financial situation,

- has multiple duties, from financial reportage to deciding where and

- oversees the capital structure of the company, determining the best

- Addressing the issues surrounding capital structure is one of the

- responsible for presenting and reporting accurate and timely

All stakeholders in the company, including shareholders, analysts,

- It is imperative that the information reported by the CFO is accurate

- responsible for the company's present financial condition, so they

- oversees the capital structure of the company, determining the

- Addressing the issues surrounding capital structure is one of the

- responsible for a company's past and present financial

- must be able to identify and report what areas of a

- Analytical aptitude. Advanced analytics fuel decision-making,

- Cash Flow. ...

A Chief Financial Officer's (CFO) daily responsibilities

- to control the cash flow position throughout the company, understand

- authority to establish accounting policies and procedures for credit

After cash flow, part of the new CFO responsibilities is to

- understand the company business model for

- scorekeeper using tools like the balanced

- In a small organization, the CFO is the supervisor

- In a larger company, the CFO responsibilities may only

Either way, the new CFO supports the company’s accounting

- establish and maintain lines of communication with investment

- administer banking arrangements and loan agreements and

- In addition, you invest the company’s funds and administer

- establish and execute programs for the provision

- coordinate the long-range plans of the company, assess the

- need to approve all agreements concerning

- responsible for the financial aspects of all company transactions

- provides insurance coverage, as required, ensures the maintenance

- ensuring company compliance with financial regulations and

- analyzes company shareholder relations policies,

- recommends to the President new or revised

Budgets are a fact of life, and the CFO is responsible

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