CFO Bridge - Taxation & Accounting Services in India (2024)

FAQs

Who answers to the CFO? ›

The CFO relies on the reporting generated by accounting and the financial controller to advise the CEO and board on the company's strategic financial direction. The controller and other functional specialists report to the CFO.

In the financial operations realm, accountants take care of the past, balancing books, reporting results and filing taxes. CFOs manage the company's future, creating strategies, forecasts and pathways to achieve future goals.

The term chief financial officer (CFO) refers to a senior executive responsible for managing the financial actions of a company. The CFO's duties include tracking cash flow and financial planning as well as analyzing the company's financial strengths and weaknesses and proposing corrective actions.

The CFO's role involves conducting financial planning and analysis to examine past performance and forecast future growth potential. CFOs provide ongoing visibility into revenue and cost trends, as well as risk factors that may impact key objectives across planning horizons.

The CEO is the highest-ranking role in the organization. CEOs and CFOs are not equal in the organizational hierarchy, despite both having 'Chief' in their titles. Generally, the CEO reports to the board of directors, whereas the CFO reports to the CEO.

There are three important divisions that report directly to the CFO of a company. Those three divisions are a controller, treasurer, and tax manager.

Chief Financial Officer

CFOs usually have an education in finance or economics and have an MBA or a masters in a finance or the industry. Many CFOs are certified public accountants(s). A CFO is focused on the company's current financial health as well the long term view of the company's goals.

A strong background in finance, combined with strategic thinking and leadership skills, is typically more important for a CFO than a specific accounting certification. That being said, some CFOs do hold a CPA designation. According to the Journal of Accountancy, 44% of CFOs are CPAs.

They are not necessarily required to have a master's degree, but some do bring advanced degrees. Professional accounting and finance experience is most important, with a minimum 10 years on the job usually required. CFOs also commonly bring certifications in accounting, auditing or financial management.

Taxes are included in the calculations for the operating cash flow. Cash flow from operating activities is calculated by adding depreciation to the earnings before income and taxes and then subtracting the taxes.

Do tax accountants become CFOs? ›

Accountants become CFOs through a combination of hard work, dedication, and the long-term pursuit of their career goals. To even be considered for the position, they must have experience in financial management and analysis, as well as professional certifications in the field.

Treasury encompasses three critical aspects for long term business success; Cash Management, Capital Raising (Funding) and Risk Management. A successful CFO has the capabilities to effectively lead each of these core competencies.

Typically, the CFO is the highest-ranking finance team member in the company. In a traditional company hierarchy, they are usually third in line, behind the CEO and COO. The CFO reports directly to the CEO. Both are leaders of the finance team.

At the top if the CFO. Finance Director/ VP of Finance is essentially the same role, however if you have a VP of Fin, but need a strategic person at the same level (or a little higher) then you have the CFO. Below that is Controller (Chief Accounting Officer).

The CFO is comparable to a controller or treasurer. The chief financial officer usually reports to the CEO, as well as the board of directors. They may also assume a seat on the board. They are the head of the company's finance personnel and are also the key financial spokesperson.

The CFO is one of an organization's most senior executives, forming part of the C-suite and reporting directly to the chief executive officer to help shape the company's financial operations and strategy, as well as managing accounting and day-to-day budgeting.