Question

What is the primary goal of management? What are the primary tasks of a Chief Financial Officer (CFO) and others in finance function of an organization?

Answer 1

The primary goals of the management of the company ( which comprise the CEO, CFO, CMO CXO's and other executives) is the following

1. To maintain highest standards of corporate governance

2, To make sure the company runs smoothely and grows.

3. To make sure that the future of all the employees is safe and the company is properly positioned in the highly competitive world.

4. To monitor the social responsibilties the company has towards the society.

5. To strategise the future path of the company and where to take it in the future.

A CEO in a company who looks after the complete functioning of the company and is the leader managing the entire day to day operations of the company including marketing, finance, operations etc.

A CFO in contrast is one who specialises and looks after the financial aspect of managing the company. His primary tasks include

1. Managing the costs of the company. This include the costs of manufacturing, advertising, marketing, admin etc.

2. Liasoning with the bankers and keeping a track of the funding and other banking for the company.

3. Keeping a check on the profit and loss, balance sheets and cash flows of the company.

The Chief Financial Officer is one on whom the entire financial responsibilities are bestowed upon by the CEO. He is responsible to maintain the target the company has envisaged if any in terms of the costs etc. He is responsible to make sure that there are no monetary glitches that the company would have to face financially.

The CFO also makes sure all the financial audits are cleared by the company. He is the one who is the troubleshooter in the event finances go haywire. The CEO relies on him completely for all the company related finance matters.