CFO (Chief Financial Officer), a key and versatile position, between figures and strategy
Who is the CFO, or Chief Financial Officer? Mainly responsible for the company's finances, the CFO oversees the company's financial equilibrium. As the CFO's role evolves and becomes increasingly digitalized, particularly in start-ups, he or she is increasingly assisting the CEO in managing the business, advising him or her and taking part in strategic decisions.
What are the responsibilities and remits of this essential job? In this article, CFOs and aspiring CFOs alike will find a detailed job description for the CFO, training courses and key skills for success, as well as a toolbox to help you accomplish your missions.
Recruiters, you'll also find advice on how to successfully recruit a CFO for your company.
CFO: translation
What does CFO mean in French? The CFO is the chief financial officer of a company or organization.
Originally used in Anglo-Saxon countries, it also refers to the French equivalent of Directeur Administratif et Financier (DAF), which encompasses the functions of :
- Chief Financial Officer,
- legal director and
- human resources director.
This is often the case in small organizations (TPE, PME).
CFO job description
What is the role of a CFO? Definition
The main role of a CFO or Chief Financial Officer is to :
- oversee and report on the company's financial management,
- implement operational plans in support of management's strategic vision ,
- monitor budgets and KPIs.
The CFO plays an important role in decision-making. Supported by the CFO, the CEO or managing director builds his long-term strategy, thanks to his global and quantified vision of the company's entire activity.
☝️ What about the CFO in a start-up? The CFO's role is to support the scalability of fast-growing companies such as start-ups and scale-ups. They help to structure and optimize cash management and ensure the company's profitability.
Beyond the raw data and figures, CFOs develop privileged relationships with :
- the CEO and the management board,
- external entities (auditing firms, law firms, tax authorities),
- the finance department (accountants, management controller, treasurer),
- internal managers of other departments, notably marketing, human resources, operations and sales.
He/she is also a manager, ensuring that the department runs smoothly, coordinating the various teams and educating staff in financial matters.
CFO: missions and responsibilities
- Monitor and manage the company's finances :
- optimize treasury and cash management ;
- manage financial operations, ensuring cost efficiency;
- estimate financial risk for all investment projects;
- supervise the preparation of budget forecasts, and monitor their evolution.
- Reporting:
- report regularly on the company's financial situation to management and the Board of Directors;
- maintain relations with financial partners.
- Participate in company strategy:
- carry out financial and tax analyses, including forecasts;
- propose strategies based on the information produced.
- Coordinate financial matters within the company:
- manage teams and coordinate company departments to achieve objectives (processes, definition of KPIs, and reporting tools);
- ensure that budgetary procedures run smoothly within the teams.
- Act as the main point of contact for financial and compliance matters:
- answer financial, tax, legal and human resources questions as required;
- ensure compliance with accounting and financial regulations;
- ensure compliance with legal obligations.
Skills and qualities required
Key CFO skills
- expertise in tax, accounting and legal issues,
- business management skills,
- reporting skills,
- decision-making,
- working in project mode,
- change management,
- good use of software (Excel spreadsheets, business and accounting software),
- sense of customer service.
Personal qualities and skills
- thoroughness,
- strong organizational skills,
- ability to analyze and summarize,
- method,
- proactivity,
- initiative,
- results-oriented,
- autonomy,
- versatility,
- curiosity.
Relational and managerial skills
- strong leadership skills,
- persuasiveness,
- good communication skills,
- flexibility and adaptability,
- listening skills and empathy,
- public speaking and meeting facilitation,
- team management and coordination.
What salary can a CFO aim for?
As a general rule, the gross annual salary ranges are as follows:
- between €45,000 and €70,000 for a junior profile,
- between €100,000 and €400,000 for a senior profile.
Salaries vary greatly according to seniority, company size and sector of activity.
Career prospects
For those who wish to focus on more operational aspects of their work, the CFO position can be upgraded to general management, especially in start-up companies.
The CFO position may also evolve into that of CFO of a subsidiary or larger entity, within the same group.
How do I become a Chief Financial Officer?
How does one become a CFO? Training and profile
The CFO function does not require a "classic" career path, but studies in finance-accounting, management, business law or economics are recommended, after a 5-year university degree.
Additional experience in human resources or IT may also be useful.
A number of courses can lead to this position:
- Master's degree in management, specializing in accounting, auditing, taxation or financial engineering,
- Master's degree in accounting or finance,
- Business school diploma, finance/accounting option,
- Engineering school diploma,
- IEP diploma, finance option.
Experience required
To reach this position, 6 to 10 years' experience is generally required, for example in the finance department of a company or in an accounting firm.
Several years' experience are required to acquire the necessary technical and analytical skills, in particular :
- in an auditing firm
- investment banking
- consulting firm,
- strategy consulting firm,
- as the founder and manager of a small business.
The Chief Financial Officer's toolbox
What tools can help CFOs to be more efficient in their day-to-day tasks?
- Finance and accounting software to :
- simplify and automate company financial management,
- assess financial risks,
- provide analysis and generate reports.
- Treasury software to track company operations and financial flows;
- Expense and expense management software, including corporate bank cards such as Mooncard;
- Dashboard software to provide a graphical summary of your indicators and facilitate your analyses;
- ERP software to support your company's growth;
- Project management software, for a global view of major ongoing projects and their financial aspects.
How do I recruit a CFO?
You have two main options for your company:
- either recruit a CFO as an internal resource,
- or outsource this function.
If your company is growing fast, it makes more sense to recruit your own CFO. Closer to management, he or she will be in a position to advise you on the right strategic directions to take, and to control financial and legal risks.
Here are a few tips for successfully recruiting this position of responsibility:
- be clear about the CFO's scope and responsibilities, and whether he or she will be in charge of legal, social and HR issues in addition to finance and accounting;
- find out about the experience acquired by candidates: their profile, the functions they have performed, whether they have already managed a team, and the soft skills they have developed;
- create a detailed offer giving as much context as possible about the missions, the company and its strategic challenges.
The other option is to entrust the CFO functions to an external resource, using a consulting firm. This option provides you with an immediately operational resource, on a time-sharing basis with other companies, and thus reduces costs.
What about you? Are you a CFO or Chief Financial Officer, or do you aspire to become one? What would you like to see in a CFO job offer?
Article translated from French