Large public organizations may have defined the CFO function, but the position is becoming more frequent in midrange and small businesses. Smart businesses now see the CFO role — internal and virtual or fractional CFO — as an investment rather than a cost. You can even get help from real estate CFO services in Charlotte, NC, so that they can handle some of your key responsibilities, and you have more time to focus on what matters to you.
What is a CFO?
A chief financial officer (CFO) is a senior executive overseeing a company’s financial operations. The CFO’s responsibilities include:
- Tracking cash flow and financial planning.
- Reviewing the company’s strengths and weaknesses.
- Recommending remedial steps.
A CFO’s position is similar to that of a treasurer or controller in that they manage the finance and accounting divisions and ensure that the company’s financial reports are correct and finished on time.
How do CFOs work?
The chief financial officer is a member of the C-suite, which refers to a firm’s top executives. These positions include the chief executive officer (CEO), chief operating officer (COO), and chief information officer (CIO), in addition to the CFO.
A specific level of industry experience is required to become a CFO. Most employees in this role have advanced degrees and qualifications, such as a graduate degree in finance or economics and the Chartered Financial Analyst (CFA) title. A background in accounting, analysis, or investment banking is also advantageous.
The CFO reports to the CEO but is an important member of any company’s management team. It is a high-ranking job in the financial business and is frequently the third-highest position in a corporation in other industries.
People in this position substantially impact the company’s investments, capital structure, and income and cost management. This corporate executive may support the CEO with cost-benefit analysis, forecasting, and the acquisition of money for different initiatives.
CFOs in real estate
The position of CFO in real estate investment platforms is growing more complicated. The CFO position has evolved into a critical component of the functioning of real estate investment vehicles. Traditionally, the function entails keeping historical books and records, reporting to investors, and assuring legal and regulatory compliance. It encompasses an ever-expanding spectrum of activities.
Other significant duties include:
- Treasury management.
- Raising and managing finance.
- Regulating cash and associated distributions.
- Assisting capital markets teams.
Recently, the finance department has been expected to become increasingly involved in value-added operations like transactions and promote innovations that would improve vehicle and manager performance.