CFO (Chief Financial Officer), a key and versatile position, between figures and strategy
Who is the CFO, or Chief Financial Officer? As the main custodian of the company's finances, the CFO oversees the company's financial equilibrium. As the CFO's role evolves and becomes increasingly digital, particularly in start-ups, he or she increasingly assists 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, current or aspiring CFOs will find a detailed job description for the CFO, training courses and the key skills needed to succeed, as well as a toolbox to help you carry out your duties.
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 organisation.
Originally used in Anglo-Saxon countries, it also refers to the French equivalent of Directeur Administratif et Financier (DAF), which includes the functions of :
- Chief Financial Officer
- legal director and
- human resources director.
This is often the case in small organisations (VSEs, SMEs).
CFO job description
What is the role of a CFO? Definition
The main role of a CFO or Chief Financial Officer is to :
- overseeing the company's financial management and reporting,
- Implementing operational plans in support of management's strategic vision ,
- monitoring budgets and KPIs.
The CFO plays an important role in decision-making. With the CFO's support, the CEO or managing director builds his or her long-term strategy, thanks to a global and quantified view of the company's entire business.
☝️ What about the CFO in a start-up? Their role is to support the scalability of fast-growing companies such as start-ups and scale-ups. They help to structure and optimise cash management and ensure the company's profitability.
In addition to raw data and figures, CFOs develop close relationships with :
- the CEO and the management board
- external bodies (audit firms, lawyers, tax authorities),
- the finance department (accountants, management controller, treasurer),
- internal managers in other departments, particularly marketing, human resources, operations and sales.
He or she is also a manager, ensuring that the department runs smoothly, coordinating the various teams and educating staff in financial matters.
CFO: duties and responsibilities
- Monitoring and steering the company's finances :
- optimising cash flow and cash management ;
- manage financial operations, ensuring cost efficiency;
- estimating the financial risk for any investment project;
- overseeing the preparation of budget forecasts and monitoring their progress.
- Reporting:
- reporting regularly on the company's financial situation to management and the Board of Directors;
- maintaining relations with financial partners.
- Participate in the company's strategy:
- carrying out financial and tax analyses, in particular forecasts ;
- proposing strategies on the basis of the information produced.
- Coordinate financial matters within the company:
- managing teams and coordinating company departments with a view to achieving objectives (processes, definition of KPIs and reporting tools);
- Ensuring that budgetary procedures run smoothly within the teams.
- Act as the main point of contact for financial and compliance matters:
- answering financial, tax, legal and human resources questions, where necessary;
- Ensure compliance with accounting and financial regulations;
- ensuring compliance with legal obligations.
Skills and qualities required
Key CFO skills
- expertise in tax, accounting and legal issues,
- business management skills,
- reporting,
- 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 organisational skills
- ability to analyse and summarise
- method,
- proactivity,
- initiative,
- results-oriented,
- autonomy,
- versatility,
- curiosity.
Interpersonal and managerial skills
- strong leadership skills
- persuasiveness,
- good communication skills,
- flexibility and adaptability
- listening skills and empathy,
- public speaking and chairing meetings,
- 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.
It should be noted that salaries vary greatly depending on seniority, the size of the company and the sector of activity.
Career prospects
For those who wish to focus on more operational aspects of their work, they could apply for a position in general management, particularly in a start-up company.
The position of CFO 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 do you become a CFO? Training and profile
The CFO role does not require a 'traditional' career path, but studies in finance/accounting, management, business law or economics are recommended, after a 5-year higher education qualification.
Additional qualifications in human resources or IT may also be useful.
A number of courses can lead to this position:
- Master's degree in management, specialising in accounting, auditing, taxation or financial engineering,
- Master's degree in accounting or finance,
- Business school diploma, majoring in finance and accounting,
- 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 accountancy firm.
Several years' experience are required before taking up this post, to acquire the necessary technical and analytical skills, in particular :
- in an audit firm
- in an investment bank
- in a consultancy firm
- in a 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 the company's financial management,
- assess financial risks
- provide analysis and generate reports.
- Cash management software to monitor company operations and financial flows;
- Expense and expense management software, even including a corporate bank card such as Mooncard;
- Dashboard software to provide a graphical summary of your indicators and facilitate your analyses;
- ERP-type software to support your company's growth;
- Project management software, for a global view of the major projects underway and their financial aspects.
How do you 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 able to advise you on the right strategic direction to take and control financial and legal risks.
Here are a few tips for successfully recruiting this position of responsibility:
- be clear about the scope and remit of the CFO, and whether he or she will be in charge of the legal, HR and social aspects in addition to finance and accounting;
- find out about the candidates' experience : their profile, the roles they have held, 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 role, the company and its strategic challenges.
The other option is to entrust the CFO duties to an external resource, using a consultancy firm. This option allows you to have a resource that is immediately operational, on a time-sharing basis with other companies, and so reduce costs.
What about you? Are you a CFO or Chief Financial Officer, or do you aspire to become one? What do you look for in a CFO vacancy?
Article translated from French