CHIEF FINANCIAL OFFICER

A chief financial officer (CFO) is the 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 is similar to a treasurer or controller because they are responsible for managing the finance and
accounting divisions and for ensuring that the company’s financial reports are accurate and completed in
a timely manner.
* The chief financial officer, or CFO, of a company is the top-level financial controller, handling everything
relating to cash flow and financial planning.
* Often, a CFO is the third-highest position in a company, playing a vital role in the company's strategic
initiatives
(https://www.investopedia.com/terms/c/cfo.asp)

DIFFERENCE BETWEEN CFO AND TREASURER

The New York Times describes the position of a Chief Financial Officer, or CFO, as the person who is
responsible for accounting, budgeting, financial analysis and the oversight of insurance, health
insurance, real estate, banking, accounts receivable and legal issues. A treasurer is responsible for
managing financial risk for the company across credit, currency, interest rates and operations.
In business, a CFO generally oversees the performance of a treasurer. The CFO is responsible for all
aspects of the company's financial management, while the treasurer is only concerned with one area,
risk. According to an article in San Diego Source, the treasurer is responsible for the monitoring and
investment of the company's cash so there is a balance between investments and returns. The same
article notes that the treasurer may also be responsible for making sure the company's assets are
adequately protected by insurance.
San Diego Source describes the responsibilities of a CFO as overseeing controllership, the treasury,
capital structure, executive reporting, financial intelligence and business strategy. The CFO is the highest
financial officer in a company. This position often works in conjunction with the Chief Executive Officer,
or CEO, and reports directly to the owner of the company or the board of directors.
(https://www.reference.com/business-finance/difference-between-cfo-treasurer-1a56806e8f80d224)

ROLES AND RESPONSIBILITIES

Roles
The role of the CFO (Chief Financial Officer) has been changing over the past twenty years. Originally, the
role of the CFO revolved around producing and analyzing the financial statements. However, because of
the computerization of the accounting function the need for accounting skills in performing the roles and
responsibilities of a CFO diminished. Though the job description of a CFO (Chief Financial Officer)
remains broad the tasks comprising that function fall into four distinct roles.
The Strategist CFO
The first role of the CFO is to be a strategist to the CEO. In today’s fast paced business environment,
producing financial reports and information is no longer enough. CFO’s in the twenty-first century must
be able to “peak around corners”. Therefore, they must be able to apply critical thinking skills, along with
financial acumen, to the long term goals of the organization.

The CFO as a Leader

It is no longer sufficient for a CFO to sit back and analyze the effort of others. The chief financial officer
(CFO) of today must take ownership of the financial results of both the organization and senior
management team. The chief financial officer of today must be responsible for providing leadership to
other senior management team members, including the CEO. The CFO’s role can sometimes force them
to make the tough calls that others in the organization don’t or can’t make. Occasionally, this can mean
the difference between success and failure.
The CFO as a Team Leader
The third role of the CFO is that of a team leader to other employees – both inside and outside of the
financial function. Not only will a coach call plays for a team, but they are also responsible for getting the
highest results out of the talent on their team. An aspiring and successful coach will produce superior
results by finding the strengths of their team members and obtaining a higher level of performance than
the individuals might achieve on their own. The role of the CFO (Chief Financial Officer) is to bring
together a diverse group of talented individuals to achieve superior financial performance.
The CFO with Third Parties
Last, but not least, the role of the CFO is that of a diplomat to third parties. People outside of the
company look to senior management team for inspiration and confidence in the company’s ability to
perform. In almost every case the financial viability of the company is vouched for by the CFO. The CFO’s
role becomes that of the “face” of the company’s sustainability to customers, vendors and bankers.
Often these third parties look to the CFO for the unvarnished truth regarding the financial viability of the
company to deliver on it’s brand promise.
(https://strategiccfo.com/the-role-of-the-cfo-chief-financial-officer/)
Responsibilities
1. Cash Flow
As a new Chief Financial Officer, your job is to control the cash flow position throughout the company,
understand the sources and uses of cash, and maintain the integrity of funds, securities and other
valuable documents. You receive, have custody of, and disburse the company’s monies and securities.
New CFO responsibilities include the authority to establish accounting policies and procedures for credit
and collections, purchasing, payment of bills, and other financial obligations. Cash is king and the flow of
cash, or cash flow, is the most important job a new CFO has in any company.
2. Company Liabilities
After cash flow, part of the new CFO responsibilities is to understand all of the company’s liabilities. A
company has many legal contracts, statutory & tax obligations, hidden liabilities in the form of
contingencies, leases, or insurance summaries, and expectations from loan covenants and/or the board
of directors.
3. Department Supervision
In a small organization, the CFO is the supervisor of Accounting, Finance, HR, and IT. In a larger company,
the CFO responsibilities may only include the Accounting and Finance functions. Either way, the new CFO
supports the company’s accounting and financial functions using job descriptions, policies, and
procedures, and methods for automating document control.
4. Financial Relationships
As a new CFO, you establish and maintain lines of communication with investment bankers, financial
analysts, and shareholders in conjunction with the President. You administer banking arrangements and
loan agreements and maintain adequate sources of capital for the company’s current borrowings from
commercial banks and other lending institutions. In addition, you invest the company’s funds and
administer incentive stock option plans.
5 Finance or Raising Capital
You would think that finance is one of the key CFO responsibilities. Yes, it is important, but it comes after
other more pressing operational issues, like those listed above. The new CFO will establish and execute
programs for the provision of capital required by the company, including negotiating the procurement of
debt and equity capital and maintaining the required financial arrangements. As the new CFO, you’ll
coordinate the long-range plans of the company, assess the financial requirements implicit in these
plans, and develop alternative ways in which financial requirements can be satisfied.
6. Financial Obligations
As the new CFO, you need to approve all agreements concerning financial obligations, such as contracts
for raw materials, IT assets, and services, and other actions requiring a commitment of financial
resources.
7. Record Control
The new CFO is responsible for the financial aspects of all company transactions including real estate
bids, contracts, and leases. The CFO also provides insurance coverage, as required, ensures the
maintenance of appropriate financial records, prepares required financial reports, insures audits are
completed in time and statutory book closing occur. One of the primary CFO responsibilities is ensuring
company compliance with financial regulations and standards, like Sarbanes-Oxley, the IRS Tax Code, and
GAAP (and soon, IFRS).
8. Shareholder Relations
A new CFO analyzes company shareholder relations policies, procedures, and information programs,
including the annual and interim reports to shareholders and the Board of Directors, as well as
recommends to the President new or revised policies, procedures, or programs when needed.
9. Budgeting and Expense Control
Budgets are a fact of life, and the new CFO is responsible for overseeing the budget process, collecting
the inputs, and comparing the company’s actual performance with estimates (the budget). It is an ugly
process that falls within the CFO area of control.
(https://www.bizmanualz.com/be-a-better-boss/what-are-the-top-ten-cfo-responsibilities.html)
CFO JOB QUALIFICATIONS
Please be aware that a Chief Financial Officer requires extensive experience. Typical qualifications for
CFO roles include:
A minimum of 8, preferrably 10, years experience in a senior role.
CPA designation preferred.
Masters degree in Accounting, Finance or Business.
Up to date knowledge of current financial and accounting computer applications.
Excellent verbal, analytical, organizational and written skills.
(https://josephmichaels.com/job-seekers/cfo-description/)

CFO AVERAGE SALARY

Chief Financial Officer salaries in Philippines range between 42,274 PHP per month (minimum salary) to
158,787 PHP per month (maximum salary).
Experience level is the most important factor in determining your salary. Naturally the more years of
experience the higher your wage. We broke down Chief Financial Officer salaries by experience level. A
Chief Financial Officer with less than two years of experience makes approximatly 48,682 PHP per
month. While someone with experience level between two and five years is expected to earn 66,742
PHP per month, 37% more than someone with less than two year's experience. Moving forward, an
experience level between five and ten years lands a salary of 84,219 PHP per month, 26% more than a
person with two to five years of experience. Additionally, Chief Financial Officer(s) whose expertise span
anywhere between ten and fifteen years get a salary equivalent to 101,696 PHP per month, 21% more
than a person with five to ten years of experience. If the experience level is between fifteen and twenty
years, then the expected wage is 119,173 PHP per month, 17% more than a person with ten to fifteen
years of experience. Lastly, employees with more than twenty years of professional experience get a
salary of 147,718 PHP per month, 24% more than people with fifteen to twenty years of experience..
(http://www.salaryexplorer.com/salary-survey.php?loc=171&loctype=1&job=6256&jobtype=3)
5 Tools Every CFO Should Be Using
Dashboards
CFOs do not have the luxury of time, so when they need to see concrete figures before making an
important decision, they need to be able to pull up that information instantly. Thus, more and more
leaders are relying on dashboards. And, with the data-driven nature of most businesses, these
dashboards have begun to incorporate additional important metrics, not just big picture financial ones.
Now, there are solutions that provide data about topics such as sales revenue, profitability, operations,
and other tactical metrics. In addition, many of these dashboards don't just paint a broad picture but can
also delve into the data at a more granular level. Ultimately, dashboards provide CFOs with real-time
data, allowing for quicker analysis and faster decision-making.
Projections
An up-to-date balance sheet is obviously an important resource to assess a company's financial picture.
However, these don't always provide a good sense of any substantial changes that may occur in the near
or distant future. As a result, CFOs should ensure that various projections are prepared for different
scenario possibilities. Although it is important to create a firm budget, companies have to be realistic
about unexpected shifts. By analyzing the impact of any potential changes ahead of time, companies will
be better equipped to make decisions quickly and based on reliable calculations.
Accounting Tracker
The type of accounting software selected will really depend on the size and complexity of a company's
financial portfolio. Fortunately, there are solutions available for businesses of all sizes. Some solutions
allow for incredibly detailed oversight, whereas others provide for a more broad and general overview.
Either way, given the range and affordability of the available options, there is no reason for companies to
fail to keep up with accounting, even without the help of a bookkeeper or other professional.
Comparison Charts
This is a broad and fairly generic category, but it is meant to encompass various analytical tools that offer
comparative analyses. For example, CFOs will likely want to gauge progress by looking at trends that
occurred over certain periods of time. Or, leaders may want to assess where they stand compared to
competitors. The bottom line is that leaders cannot simply rely on data in a vacuum. They must also
examine the significance of the data over time and against other types of data both internally and
externally. Thus, it is important to invest in an appropriate data analytic tool that can quickly provide
these sort of graphical snapshots.
Virtual Data Room
Depending on a company's needs and preferences, various business solutions may be needed to capture
and analyze data. But, it may be difficult to grasp and organize disparate pieces of information that are
scattered across platforms. Therefore, CFOs should ensure that their company has an online corporate
repository to centralize all of this information. In general, companies should utilize a highly secure virtual
data room to ensure that the documents they upload are coherently organized and adequately
protected.
(https://www.google.com/amp/s/www.securedocs.com/blog/5-tools-every-cfo-should-be-using
%3fhs_amp=true)