CFO or Chief Financial Officer is the modern designation that reflects the evolution of the profession of a traditional CFO. What is the role and missions of a CFO today? What is its place within the company? How to recruit the best CFO? Discover the essential ingredients of this evolving profession. The finance function within organizations is changing and today the CFO plays a key role in business management.

With a strong evolution of the stakes, an acceleration in the digital transformation and an increased internationalization, the role of the CFO is today more strategic than technical. The finance function is changing: the CFO is no longer just a “master of numbers”. Its missions are gradually moving away from a traditional administrative role to become a cross-functional and strategic function. Today, a modern CFO is at the heart of the digitalization and automation process within finance departments. As the CEO's co-pilot, the CFO fully supports the company in its growth strategy and plays an essential role in decision-making.

What is a CFO?

"Chief Financial Officer" or CFO is a relatively recent designation, which is intended to replace the traditional title of Administrative and Financial Director (DAF), Administrative and Financial Manager (RAF) or Administrative Director in SMEs. Often attached to the General Management, the CFO plays the role of a right arm of the CEO. In large companies, the CFO is a member of the management committee. His role? In one sentence, supervise and manage the administrative and financial management of the company.

However, given the challenges of businesses and digital transformation, the role of the CFO is changing significantly. Depending on the size and stage of growth of the company, the scope of the CFO's intervention varies. In most companies, the Chief Financial Officer oversees the company's finances and manages the finance teams. As a Business partner, it is one of the key functions of the whole company and which is destined to develop.

What is the role of the CFO in a company?

Admittedly, the missions of the CFO are not identical from one company to another. Depending on the size of the company and its stage of growth, the missions of the CFO are diverse.

●However, here are its most common missions:

●Support for decision-making, in particular thanks to high-performance dashboards and financial reporting.

●Guarantor of compliance with accounting, legal and tax obligations.

●Oversees accounting, treasury and financial risk control.

●Ensures proper cash and liquidity management.

●Ensures good relations with fund providers (shareholders, banks, financial markets, etc.).

●Role of administrative and financial control.

In connection with the financial teams, the CFO establishes and follows the provisional budgets and simulations, in particular on profitability.

In large companies, he is the key contact and the link with the subsidiaries. Actively participates in growth operations, such as fundraising, external growth, mergers and acquisitions or going public. Accompanies investment projects, their profitability and optimizes the company's capital the function of the CFO is essential in any company to support its growth. Small companies, which do not yet have the means to hire their CFO can opt for an outsourced CFO. This corporate finance professional works part-time in several companies, on specific assignments.

What is the place of the CFO in the company?

The function of the CFO, which is changing rapidly, is increasingly cross functional. Privileged interlocutor of the CEO, the CFO is a valuable support for making strategic and operational decisions, then validating the feasibility of the decisions from a financial point of view. The CFO is in constant contact with other functions of the company, such as human resources, the commercial function (sales) and marketing. The CFO brings a forward-looking perspective and significant support to these businesses. Given this transversally, the CFO is called upon to communicate effectively, both internally and externally. He must be able to transmit and popularize financial information to the whole company, but also outside. Apart from the company's internal teams, recruit an FD works with other stakeholders, such as accounting firms, audit firms, lawyers, banks, administrations, partners, etc.

What training and what course for a CFO?

Most often, the function of CFO requires a bac+5 level diploma in the field of accounting or auditing (a university education, a business school diploma, an MBA or a Master's degree). Beyond studies, the CFO must have solid experience (at least 5 years) in the field of management and finance. For large companies, experience in auditing is highly appreciated, in particular professional experience within a recognized audit firm, which allows them to become familiar with key accounting documents, such as the balance sheet, the income statement or the cash flow. For the CFO within a startup, it is necessary to know this type of structure, to have experience in fundraising and in investor relations.