Functional Role of a Chief Financial Officer (CFO) is to spearhead the finance and accounting of an organization. Duties of Chief Financial Officer (CFO) include Budget control, working capital management, treasury management, finance management, statutory compliance, tax management, Balance sheet, Fund raising and management etc.
Do you want to know in detail what a Chief Financial Officer does? What you should look for in a Chief Financial Officer Resume? What are the points you should include in your Chief Financial Officer CV? Please read below.
Responsibilities of Chief Financial Officer (CFO):
- Working Capital Management
- Term Loans – Short term and long term
- Project Finance management
- Enhancement/renewals proposals.
- Handle Equity/ CP/ICL and Venture Capitals
- Preparation of budgets, cash flows and financial projections.
- Preparation of MIS reports for the use of the Management.
- Coordinating with banks for raising funds, negotiating with banks for lesser interest, commission & charges
- Financial Planning and Budgeting for business
- Co-ordination and Monitoring with the Other Business Officers making strategies and implementation.
- Capital Expenditure (CAPEX) reduction and monitoring. Conducting different analysis of cost comparison & eventually minimizing the cost of operation and procurement by thoroughly executing the internal control system including the accounting control system
- Strategic negotiations with banks, financial institutions (NBFC)
- Management of Revenues and their flows
- Treasury management and Tax management
- Project finance – Raising of funds through consortium banking deals, Venture capital, both fund-based and non-fund based
- Supervising treasury activities like Opening of Letter of Credit (L.C), Bank Guarantee (BG), periodical banking formalities like Financial Follow up Reports (FFR), monthly stock statements for drawing power, renewal activities, etc.
Accounting and MIS
- Review Variance Analysis- Budgets Vs Actual
- Inventory & Cost Control & Cost Control
- Project Management and Contract review and analysis
- Internal controls and procedures. Internal Audit.
- Debtors & Creditors Control and timely follow up with marketing dept., for collections.
- Preparations of CMA data for Credit Appraisals
- Internal Audit and Statutory Auditors follow up.
- Registration with Customs authorities and fulfilling the necessary procedural formalities on a timely basis.
- Ensuring compliance of RBI regulations, Export-Import (EXIM), Indirect Taxation Export Import etc
- Finalization of client agreements, channeling collections from local clients and remittances from foreign clients.
Taxation & Commercial
- Contracts-Drafting, Negotiations, Execution
- Negotiating with the suppliers and contractors for supply and turnkey Projects and giving concurrence
- Negotiation and awarding sub-contractors
- Compliance with all statutory and Regulatory requirements co-ordination with Internal and External Agencies
- Preparation and filing of income tax returns
- Deduction and deposit of TDS and filing of TDS returns
- Issuance of TDS certificates for employees and outsiders
- Coordinating with Income-Tax authorities, TDS, Income Tax & GST Returns, Tax Assessments
- WCT management and reconciliation
- Appeals with Appellate/Tribunals, High court and Supreme court representations and appeal filing.
- Appearing before Assessing Authorities.
- Financial Risk Management
Legal & Secretarial
- Board Meetings/AGM/EGM
- Compliance of Statutory Records
- Compliance with SEBI and Stock Exchanges
- Follow up ROC and Company Law matters for certain matters
- Shareholders attention in respect of their quarries
- Responsible for Board of director’s quarries for matters relating to the operations and any details submission as required.
- Attending all other matters relating to Secretarial matters.
- Handled Right Issues and IPO
How to become a Chief Financial Officer (CFO):
Minimum Educational Qualification requirement to become an Chief Financial Officer is Graduate or Bachelor of Commerce (B.Com) in Accountancy along with Chartered Accountancy (CA) qualified from Institute of Chartered Accountancy of India – ICAI. Experience required to become a CFO is minimum 15 years of experience in general accountancy department as a Chartered Accountant.
Software skills Required for Chief Financial Officer (CFO):
MS-Word, MS-Excel, MS-Power Point
Soft skills Required for Chief Financial Officer (CFO):
- Strategic Thinker, Entrepreneurial and Leadership skills
- Proven ability to improve operation and maximize profit with cost reduction and internal controls
- Financial and Strategic planning
- Good Business Acumen and Strong Analytical Ability
- Good Knowledge of Capital Market and Real Estate Market
- Well versed with Law of Contracts, Commercial Laws and Corporate Laws
- Proficiency in scrutinizing, inspecting and guiding in all commercial and legal matters
- Resource raising, Mergers & Acquisition and Financial Reporting
- Good knowledge of regulatory environment
- Excellent Communication and Inter-Personal Skills
- Creative person with a diversified interest.
What is the Job Opportunity of Chief Financial Officer (CFO) in the industry?
Chief Financial Officers are required and hired in every industry, be it a manufacturing or service industry etc.
Salary of Accounting Manager (in India)
Salary of Chief Financial Officer in India ranges from 20 Lacs Rupees to several Crores of Rupees per annum depending upon the qualification, experience, Expertise, Company Size, Volume of business.
Yes, he needs to work in accounting department in any organization and be a chartered accountant (CA).
There are moderate demands of CFO abroad especially in Middle east countries (Gulf), South Africa, Canada.
Yes, CFO is the vertical Head of the finance and accounting department