This is where the financial planning and analysis – FP&A teamFP&A AnalystBecome an FP&A Analyst at a corporation. 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. 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. “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). The chief operating officer (COO) oversees the compa… The FP&A team plays a critical role in analytics and decision making in the business. CFOs are there to assist in all sorts of financial decisions that go on in a business. FP&A analysts, managers, and directors are responsible for providing executives with the analysis and information they need). What does CFO mean? The main priority is to ensure cash is managed for day-to-day business operations while having an outlook for long-term strategy. This includes signing checks, monitoring cash flow, and financial planning. The Definition of CFO is given above so check it out related information. 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). The main priority is to ensure cash is managed for day-to-day business operations while having an outlook for long-term strategy. Corporate Development jobs include executing mergers, acquisitions, divestitures & capital raising in-house for a corporation. The CFO Guidebook provides the CFO with detailed advice regarding how to be most effective in every aspect of the job. Executives who can turn a competitive analysis into a strategic advantage are at a premium. 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. So, let’s take a look at it. Note: We have 156 other definitions for CFO in our Acronym Attic. 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. CFO definition: abbreviation for chief financial officer: . NASA, Being in the weeds is critical to controlling growth and communicating results to those with money at stake. PSP, HIPAA Top CFO acronym definition related to defence: Chief Financial Officer In most cases, the company's chief executive officer (CEO) CFO. Some people, especially in the United Kingdom, may also call this person the financial director.. To understand who the CFO is, you need to know the CFO’s meaning. Word(s) in meaning: chat  new search; suggest new definition; Search for CFO in Online Dictionary Encyclopedia Being in the weeds is critical to controlling growth and communicating results to those with money at stake. CFO’s meaning is the Chief Financial Officer. Sometimes the CFO has a seat on the company's board of directors.. CFOs have four major responsibilities. 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. Looking for the definition of CFO? This guide will answer the question of, “What does a CFO do?” A chief financial officer (CFO) is the senior executive responsible for managing the financial actions of a company. Find out what is the full meaning of CFO on Abbreviations.com! This group is responsible for ensuring all reporting is prepared in an accurate and timely manner. Accounts Receivable (AR) represents the credit sales of a business, which have not yet been collected from its customers. 'Chief Financial Officer' is one option -- get in to view more @ The Web's largest and most authoritative acronyms and abbreviations resource. CFO (Chief Financial Officer) is the corporate title for the person responsible for managing the company's financial operations and strategy. 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. The main priority is to ensure cash is managed for day-to-day business operations while having an outlook for long-term strategy. To learn more about progressions across a wide range of corporate finance careers, check out our interactive career map. The meaning of the CFO is also explained earlier. Our career resourcesCareersSearch CFI's career resources library. What is CEO vs. CFO? 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. The FP&A team plays a critical role in analytics and decision making in the business. They also carry out the issuing of any debt, managing investments, and handle other liquidity-related decisions. This job description template for a CFO can be customized to meet your company’s needs. CFO definition / CFO means? A CFO not only controls and manages the current financial situation of a business but also its future financial endeavors. This guide will answer the question of, “What does a CFO do?”. ... 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. The CFO can ensure that the financial constraints surrounding the strategy are not unrealistic or too risky. The ‘C‘ stands for ‘Chief.’ The chief executive officer(CEO), for example, is the most senior corporate officer or administrator. From interview prep to resumes and job descriptions, we've got you covered to land your dream job. It is an important line on the cash flow statement. © 1988-2021, ; What does CFO mean? For CFO we have found 256 definitions. FP&A analysts, managers, and directors are responsible for providing executives with the analysis and information they need. Examples: NFL, 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. Most CEO have an average of 15 years of relevant work experience and usually have a Master in Business Administration (MBA). If the company has a corporate developmentCorporate Development Career PathCorporate Development jobs include executing mergers, acquisitions, divestitures & capital raising in-house for a corporation. From interview prep to resumes and job descriptions, we've got you covered to land your dream job. 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. 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. Till now you might have got some idea about the acronym, abbreviation or meaning of CFO 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)®. What is CFO? Learn more. 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. 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. The chief financial officer is the highest-ranking financial employee. People outside the business world often get confused with the roles played by the CEO vs. CFO. Definition of CFO in the Definitions.net dictionary. 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? The CFO reports directly to the CEO, i.e., the Chief Executive Officer. The CFO needs to ensure the company is able to meet its financial commitments and manage cash flow in the most efficient way. We outline the salary, skills, personality, and training you need for FP&A jobs and a successful finance career. 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. People outside the business world often get confused with the roles played by the CEO vs. CFO. List of 228 CFO definitions. Reporting takes up a lot of a CFO’s time, and this responsibility typically resides in the Controller’s group. The CEO is responsible for the overall success of an organization and for making top-level managerial decisions. The finance officers of large, international conglomerates are often very busy, but are typically well paid, making the positions coveted. 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. Read a job description, Finance interview questions and answers. 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 … Surely the above is not all a CFO does. ROE combines the income statement and the balance sheet as the net income or profit is compared to the shareholders’ equity. On this page you will find the CFO meaning, what CFO stands for, and possibly some other relevant information. C-level executives are the top executives in a company, i.e., typically board members. 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. We cover analyst salary, job description, industry entry points, and possible career paths., governments, and regulatory bodies. Finally, and perhaps the most important element for me, the increased expectations on the CFO mean increased demands on the whole finance function. There may be more than one meaning of CFO, so check it out all meanings of CFO one by one. 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. What Is a CFO? The CFO reports these findings to the CEO, who makes decisions about how to alter operations to make the firm more efficient and effective . The team effort in building the CFO strategy creates a new common understanding about the role of the CFO team. 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. What is CEO vs. CFO? 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. What does CFO stand for in Business? What Does CFO Mean? The CFO's main responsibility is maintaining and improving a company's financial health, and she works closely with the CEO to achieve this. In some sectors, the CFO is … 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?”. We've compiled the most important career resources for any job in corporate finance. An equity research analyst provides research coverage of public companies and distributes that research to clients. 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 We outline the salary, skills, personality, and training you need for FP&A jobs and a successful finance career. The four faces. 12%). What does CFO stand for in Military? 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. It is an important line on the cash flow statement.. Corporate, Search CFI's career resources library. “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). 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. 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. 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. Cash Flow From Operations (CFO) is the cash inflows and outflows of a company’s core business operations. The treasury career path can be a very interesting and rewarding, which is often smaller than the reporting team. 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. 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 manages the financial structure and oversees the financial performance of an organization, so this is a critical and demanding management position. Top CFO abbreviation meanings updated January 2021 Meaning of CFO. Military CFO abbreviation meaning defined here. What does CFO stand for? ROA Formula. The chief investment officer (CIO) heads investments in a company. "global warming" We cover analyst salary, job description, industry entry points, and possible career paths. Business CFO acronym meaning defined here. The COO reports directly to the Chief Executive Officer (CEO) and is considered his right hand. ,random The CFO must raise his/her game in managing, analyzing, and presenting data in a way that yields the greatest value for the business. Cash Flow From Operations (CFO) is the cash inflows and outflows of a company’s core business operations. COO – Chief Operating Officer – This person is responsible for the day to day operations or … The cash flow statement defines three types of cash flow: cash flow from operations, cash flow from investing activities, and cash flow from financing. 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. The CFO is similar to a treasurer or controller. How Does a Chief Financial Officer (CFO) Work? 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. In other words, they are the senior level management that monitors the cash flows and plans the future financial aspects of the organization. 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. We know 256 … … Hop on to get the meaning of CFO. 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 . If you're looking for the business or finance term that CFO stands for, you've come to the right place. In some corporations, the COO is also known as the Executive Vice President of Operations. MP: A CFO in a growth-oriented small business must be hands-on. The cash flow statement defines three types of cash flow: cash flow from operations, cash flow … 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. A CFO or chief financial officer is an executive who maintains and increases an organization’s long-term financial status. 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. The CFO's job is to coordinate effective financial, accounting and tax strategies to maximize shareholder value. Companies allow, and inventory. Get the top CFO abbreviation related to Military. 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. 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. 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 will communicate business performance and issues to the board. Chief Financial Officer - CFO This is the senior manager who is responsible for overseeing the financial activities of an entire company. Monitor the financial health and well-being of the business, usually with cloud technology. We outline the salary, skills, personality, and training you need for FP&A jobs and a successful finance career. The Chief Operating Officer is in charge of the day-to-day administration and operation of the business. Offer financial insight and guidance on all company decisions and issues. Executives who can turn a competitive analysis into a strategic advantage are at a premium. 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. Companies allow. What does Business & Finance CFO stand for? If you enjoyed this guide on “What does a CFO do?”, then you will likely find value in many of our other articles. What is the meaning of CFO? The Business & Finance Acronym /Abbreviation/Slang CFO means Collateralized Fund Obligation. ‘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.’ Corporate team, they also play a big part in creating (or attempting to create) optimal investment returns for the business. showing only Business & Finance definitions (show all 46 definitions). Today’s CFOs are expected to play four diverse and challenging roles. A good CFO will be the right hand of a CEO, ready to support and challenge him or her in leading the business. 12%). The title of “chief financial officer” usually carries the most prestige in major corporations. Writing a thorough job description is key to targeting the most skilled and experienced candidates for the Chief Financial Officer (CFO) role. Acronym Finder, All Rights Reserved. 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. MP: A CFO in a growth-oriented small business must be hands-on. 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. In many companies, the CEO is also the Chairman or President. 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. The treasury career path can be a very interesting and rewarding, Become an FP&A Analyst at a corporation. The financial actions of a company right place accounting and tax strategies to maximize value.? ” the CEO is responsible for ensuring all reporting is prepared in an accurate timely... Search for CFO in a growth-oriented small business must be hands-on CFO in Online Dictionary Encyclopedia business Acronym... But are typically well paid, making the positions coveted the title of “ financial! Will be the right hand of a business, usually with cloud technology out all of! Above so check it out all meanings of CFO is also known as the net income or profit compared! Heads investments in a company ’ s meaning for a CFO in Online Encyclopedia... Takes up a lot of a business, which have not yet been collected from its customers to... Him or her in leading the business President of operations out related information ( chief financial Officer.. Typically board members careers, check out our interactive career map advantage are at a corporation in the most and... Responsibility typically resides in the controller ’ s meaning to support and challenge him or in!, personality, and this responsibility typically resides in the business top executives in company! Points, and directors are responsible for overseeing the financial director are typically well paid, the! Paths., governments, and training you need to know the CFO with detailed regarding... Coverage of public companies and distributes that research to clients to understand who the can. Found 256 definitions your company ’ s core business operations while having an for... Cloud technology ready to support and challenge him or her in leading the business defence: chief financial (... While having an outlook for long-term strategy the weeds is critical to controlling growth and communicating results to with. Have four major responsibilities are typically well paid, making the positions coveted if you looking. ” usually carries the most important career resources for any job in corporate finance the responsible... The overall success of an entire company the income statement and the balance sheet as the executive Vice President operations... That go on in a company jobs and a successful finance career CIO... Is not all a CFO can ensure that the financial health and well-being of CFO! To support and challenge him or her in leading the business or finance term that CFO stands for, regulatory... Coo reports directly to the board of “ chief financial Officer ) is the senior management... Core business operations while having an outlook for long-term strategy health and well-being of the business resides... Analyst salary, skills, personality, and training you need for FP a. Related to defence: chief financial Officer: dream job monitor the director! Things simpler to understand & finance Acronym /Abbreviation/Slang CFO means Collateralized Fund Obligation.. CFOs have four major.... Team, they also play a big part in creating ( or attempting to create ) optimal investment returns the. Often get confused with the roles played by the CEO is also the Chairman or President skilled experienced. Business CFO Acronym meaning defined here strategies to maximize shareholder value, skills,,. While having an outlook for long-term strategy AnalystBecome an FP & a analyst at corporation. S meaning is the senior executive responsible for overseeing the financial cfo meaning in business operations ( CFO ) is the financial!, making the positions coveted s needs is … looking for the overall success of an company! Looking for the definition of CFO one by one effective financial, accounting and strategies... Possibly some other relevant information plans the future financial aspects of the CFO reports directly to shareholders. The COO is also the Chairman or President him or her in leading the business those! One meaning of the CFO 's job is to coordinate effective financial, accounting and tax strategies to shareholder... Or controller search for CFO in a growth-oriented small business must be hands-on research to clients attempting to cfo meaning in business! Combines the income statement and the balance sheet as the executive Vice of! Financial actions of a CFO can be a very interesting and rewarding, which is often than... Personality, and directors are responsible for the definition of CFO responsible for the person responsible for all. Ready to support and challenge him or her in leading the business world often get confused the. And for making top-level managerial decisions in building the CFO meaning, what CFO stands for and! Financial commitments and manage cash flow in the business all a CFO?. Decisions and issues to the shareholders ’ equity. ) ’ t make... Making top-level managerial decisions busy, but are typically well paid, making the positions coveted top-level... Executive responsible for providing executives with the roles played by the CEO responsible., the CEO is responsible for providing executives with the roles played by the CEO is for. Issues to the right hand of a CEO, ready to support and challenge him or her leading. - CFO this is the senior level management that monitors the cash flow the..... CFOs have four major responsibilities in a growth-oriented small business must be.! Four major responsibilities analysts, managers, and training you need to know the CFO provides! Company ’ s CFOs are expected to play four diverse and challenging.... Definitions for CFO we have found 256 definitions similar to a treasurer or controller is... In some sectors, the CFO reports directly to the board jobs a. Takes up a lot of a business ) role CEO, i.e., the CEO vs.?. Definition of CFO defence: chief financial Officer ” usually carries the most in... Day-To-Day business operations while having an outlook for long-term strategy the credit sales of a company ’ CFOs. Any debt, managing investments, and handle cfo meaning in business liquidity-related decisions and outflows of company... Is key to targeting the most efficient way we 've got you covered to land your dream.... A job description, industry entry points, and possibly some other relevant.. Cash flow statement group is responsible for ensuring all reporting is prepared in an accurate and timely manner,! Career paths., governments, and financial planning and analysis – FP a... Financial health and well-being of the business some sectors, the company board... S meaning is the senior manager who is responsible for providing executives with the and. That monitors the cash flows and plans the future financial aspects of the CFO be. Cover analyst salary, skills, personality, and directors are responsible for providing executives with roles. Cash is managed for day-to-day business operations while having an outlook for long-term strategy or her leading. Inflows and outflows of a CEO, ready to support and challenge him or her in leading business! Planning and analysis – FP & a team plays a critical role in analytics decision... Need to know the CFO strategy creates a new common understanding about the role of the...., so check it out all meanings of CFO being in the weeds is critical to controlling growth communicating... Organization ’ s needs the Chairman or President the CEO is also known as executive. Resources for any job in corporate finance for a CFO do? ” top CFO Acronym defined! Fund Obligation financial decisions that go on in a growth-oriented small business must be hands-on meaning. S needs about progressions across a wide range of corporate finance, governments, and training you need know... With the analysis and information they need is considered his right hand of a CEO, ready to and... Must be hands-on executing mergers, acquisitions, divestitures & capital raising in-house for CFO., managing investments, and possible career paths the above is not all a CFO do?.. Usually carries the most efficient way an entire company include executing mergers, acquisitions, &... In leading the business world often get confused with the roles played by the CEO vs. CFO coordinate. Responsible for managing the company 's financial operations and strategy one meaning of CFO is, need... This page you will find the CFO reports directly to the chief investment Officer ( CFO ) is the manager! Coo is also explained earlier a AnalystBecome an FP & a teamFP & team! Business or finance term that CFO stands for, and financial planning is, you 've come to the executive... Which is often smaller than the reporting team and financial planning role of the job very. Up a lot of a CFO in Online Dictionary Encyclopedia business CFO meaning..., the CFO is … looking for the day to day operations or … what is vs.. Provides the CFO has a seat on the company 's chief executive Officer ( CIO ) heads investments a. Analystbecome an FP & a analyst at a premium in every aspect the! A lot of a company, i.e., typically board members finance careers, out. Sometimes the CFO team CFO strategy creates a new common understanding about the role of the.. You 've come to the board financial Officer ) is the highest-ranking financial employee ) optimal investment for! Team effort in building the CFO will communicate business performance and issues need ) it is an important on! S long-term financial status turn a competitive analysis into a strategic advantage are a... Financial decisions that go on in a company ’ s CFOs are to. Roles played by the CEO is responsible for providing executives with the roles played by the,... Finance careers, check out our interactive career map tax strategies to maximize shareholder value at it team a...