What is CFO's position and main job?

CFO (Chief Financial Officer) is the inevitable product of the development of corporate governance structure to a new stage. The governance structure without CFO is not a perfect governance structure in the modern sense. Do you know what the position of CFO is? What is the main job? Let me answer your questions!

what is the position of CFO?

Chief Financial Officer is in China. Generally, the position of CFO is higher than that of chief accountant, and the position of chief accountant is higher than that of chief financial officer. In many private enterprises, the chief financial officer is only equivalent to a middle-level manager. The chief accountant, due to the promulgation of the law on chief accountant, is at the level of administrative personnel of state-owned enterprises and is higher than the chief financial officer. For example, PetroChina has set up four director levels under the chief accountant: financial director, financial director, audit director and investment director.

In the senior financial management positions of enterprises in China, CFO(Chief Finance Officer), Chief Accountant and Chief Financial Officer coexist at the same time, and they are often confused, but in fact, these three systems are not equal and synonymous, and there are both connections and differences between them. They are not only different in literal expressions, but also different in their historical origins, essence, position in corporate governance, and responsibility orientation.

CFO originated from enterprises in some western countries, such as the United States, and first appeared in the 197s. CFO is a prominent company senior manager, who plays an important role in corporate governance. They enter the decision-making level of directors and the executive level of managers at the same time, and participate in corporate strategy based on shareholder value creation. CFO generally governs CIO(Chief Information Officer), Controller and Treasurer at the same time. The important duty of CFO is to realize the strategic goal and long-term development of the enterprise through resource allocation. Therefore, CFO should be the manager of the enterprise strategy, implement the external capital control of the enterprise on behalf of the investor, and be responsible to the shareholders and the board of directors.

after a series of financial scandals such as Enron and WorldCom in the United States, the relevant laws and regulations of the new American system stipulate that CFO should report to CEO and audit committee respectively. CFO of American enterprises plays an extremely important role in designing and implementing corporate strategy. Because the financial management of American companies has reached a fairly high level, there is no room for reducing costs. Therefore, CFO's main pressure is on some financial problems that must be solved for the company to seek further development opportunities. Relatively speaking, the CFO of European enterprises still regards cost control as the top priority. For China, CFO is an exotic product, and it was adopted earlier in China? CFO? This title is mainly used by some internet companies and high-tech enterprises, so more and more domestic companies adopt it. CFO? This title.

　? Chief accountant? The formulation of ""originated from the planned economic system of the former Soviet Union, when it was a position responsible for both the country and the factory director (manager). After entering the market economy, China enterprises are generally in? Responsible to the general manager? In this sense, the responsibility of the chief accountant is positioned. What is the position of the Chief Accountant in the Regulations on Chief Accountant issued by the State Council in 199? The chief accountant is a member of the administrative leadership of the unit, assists the main administrative leadership of the unit, and is mainly responsible for the main administrative leadership of the unit. Where a unit has a chief accountant, among the administrative leading members of the unit, there is no deputy who overlaps with the functions and powers of the chief accountant? .

China's "Accounting Law" clearly stipulates that large and medium-sized enterprises with wholly state-owned and state-owned assets holding or leading position must set up chief accountants. The chief accountant system is an important system of economic management in China. The establishment of the chief accountant system is the natural need of enterprise management and economic accounting. With the establishment of enterprises and the development of economic accounting, there will inevitably be accountants, and the chief accountant is the chief accountant. The chief accountant is the financial assistant and management staff of the general manager. He is nominated by the general manager and appointed through certain procedures, which is completely consistent with the interests of the operators. The chief accountant, on behalf of the enterprise management, is a manager-level financial manager, appointed by and responsible to the general manager. The function of the chief accountant is responsible for the daily management of the enterprise and the internal management control of the enterprise. The chief accountant focuses on financial management and accounting.

The system of chief financial officer originated in western countries. Before and after World War II, the state-owned enterprises in western countries developed to a certain extent. Generally, the management of state-owned enterprises is to select the general manager in the talent market by the financial department or competent department that can represent the country, and the general manager will manage it on his behalf, and authorize the general manager to select the appropriate chief accountant and other senior managers to form a manager level to manage production and operation.

due to the separation of ownership and management rights, these senior managers, as managers, are quite different from the owners in terms of objectives, interests and behaviors. When the interests of both sides are inconsistent, the managers often choose accounting policies, accounting methods and accounting procedures to safeguard their own interests, thus damaging the interests of the owners. In order to solve this problem, western countries have established the system of chief financial officer to supervise the general manager and managers, so as to effectively avoid it. Insider control? Protect the owner's interests and meet the owner's requirements for enterprise management monitoring.

in China? Chief financial officer? The formulation is in? Chief accountant? After that. Same as western countries, China? Chief financial officer? The system originated from the government's appointment of the chief financial officer to supervise the state-owned enterprises, and its work involves the main aspects of financial supervision. In essence, it is a higher-level development and improvement of the chief accountant system of large and medium-sized state-owned enterprises and the internal audit system of enterprises on the organization and operation of financial work and financial supervision. It absorbs and concentrates some financial management and supervision functions of the chief accountant and internal audit, and also makes up for the deficiency of the position, responsibility and authority of the chief accountant in the enterprise organization. It is a senior financial manager at the manager level, and mainly undertakes internal fiduciary responsibilities. At first, this title was used mainly by listed companies and some state-owned enterprises and other enterprises such as Shanghai and Shenzhen. Based on the good supervision effect, the CFO system has been gradually popularized. Now? Chief financial officer? This title has been very common, but its positioning is quite different among enterprises. Some enterprises? Chief financial officer? Equivalent to state-owned enterprises being responsible to the general manager? Chief accountant? . Yes? Chief financial officer? What does that mean? Head of the finance department? . There are also individual companies? Chief financial officer? Equivalent to CFO. ? Chief financial officer? Some are responsible to the board of directors, some to the general manager, and some to the board of supervisors.

There are some drawbacks in the system of chief accountant and chief financial officer in China. A considerable number of enterprises either fail to set up the position of chief accountant in accordance with the Accounting Law, or even if they do, they are not allowed to enter the senior management level, and the chief accountant and chief financial officer of most enterprises rank at the bottom of the manager team. In addition, there are also some enterprises that set the position of chief accountant or chief financial officer, not at the decision-making level of directors, but at the executive level of managers, who are only responsible to the general manager and not to the board of directors.

because the chief financial officer and the chief accountant have different responsibilities and functions, they can't replace each other. Therefore, in practice, it is suggested that the chief financial officer system and the chief accountant system should run at the same time, but this can't change the status quo that senior financial managers can't be responsible for all aspects of enterprise financial management in a real sense, so they are in no position in the enterprise.

actually, to establish an effective financial management system, the title is not the most important for senior financial managers, but the essence of the financial management system is really important. The author thinks that CFO system is a new system completely different from CFO system and chief accountant system. In modern corporate governance structure, CFO should not only be a member of the board of directors, but also participate in the company's decision-making as an executive director. Therefore, a real CFO system should be established in China's corporate enterprises, which can change the current situation that the chief accountant and chief financial officer can't really participate in enterprise management decision-making and risk management, so that China CFO can play the role that senior financial managers should really play.

Many people in China, including some enterprises, have an inaccurate or at least incomplete understanding of CFO. Only listed companies in the United States have CFOs, and many CFOs do not specialize in finance. The finance department is just a department they are responsible for and is the most basic homework. The key to its value embodiment is to play a leading role in the strategy.

CFO has three main tasks:

First, he carries out strategic operations through financial means. If he does a good job, the added value of the company will be more than the value created by business operations;

second, go like a salesman? Sell? Companies sell companies to investors, and the people who really decide the fate of listed companies are fund managers and big institutional investors, so investor relations are a very important issue for CFO;

the third task is to implement the company's strategy at the lowest cost through mergers and acquisitions.

from this, we can judge that the criteria of an excellent CFO are: independent judgment, strong business awareness, thorough understanding of business, skillful operation in the capital market and strategic vision.

Ernst & Young's survey results have subverted people's belief that CFO is a springboard to CEO. However, the top chief financial officers in the surveyed areas all said that they were very satisfied with their duties and positions, and only 1%CFO in EMEIA thought that becoming CEO was very attractive to them. 73% of people are satisfied with becoming a CFO, or working as a CFO in a team or a larger company. In comparison, the same is true in the Asia-Pacific region, where 64% of the respondents are quite sure that they want to continue to be the CEO of their current company or a larger company. 13% people want to be CEO of the company to some extent.

However, in the United States, about half of CEOs think that if the right person appears, they will accept the CEO position. The survey shows that there is usually amazing consistency in this area, but there is a big difference on this issue. [2]?

Job title: Chief Financial Officer/Chief Financial Officer/Chief Accountant

Direct superior: General Manager (this is the case in most countries) or Board of Directors (this is the case in most countries abroad)

Direct subordinate: Manager of Financial Accounting Department, Manager of Management Accounting Department, Manager of Audit Supervision Department,

Manager of Treasury Department, Chief Financial Officer/Chief Financial Officer/Assistant to Chief Accountant

.

first, the financial director's business responsibilities

1. Understand the market situation under the current sales strategy;

1. organize and lead the company's financial management, cost management, budget management, accounting, accounting supervision, audit supervision, inventory control and other aspects to strengthen the company's economic management and improve economic benefits.

14. Participate in formulating the annual general budget and quarterly budget adjustment of the company, summarize and review the monthly budget reported by subordinate departments, and convene and preside over the monthly budget analysis and balance meeting of the company.

1. Be responsible for the organization and implementation of important internal audit activities.

⒌ master the company's financial status, operating results and capital changes, and report the work to the general manager and chairman in time.

[6] To preside over the formulation of the company's financial management, accounting and accounting supervision, budget management, audit and supervision, and warehouse management, organize the implementation and supervise and inspect the implementation after approval.

1. Organize the implementation of relevant national financial laws, regulations, guidelines, policies and systems, ensure the legitimate operation of the company and safeguard the rights and interests of shareholders.

⒏ examine and approve the operation of withdrawing cash from the bank according to regulations.

⒐ Responsible for reviewing and signing the company's budget, financial revenue and expenditure plan, cost plan, credit plan, financial report and final accounting statement, and countersigning major business plans, economic contracts and economic agreements involving financial revenue and expenditure.

⒑ participate in the decision-making and scheme formulation of the company's investment behavior and important business activities, participate in the research and review of major economic contracts or agreements, and participate in the analysis and decision-making of important economic issues.

⒒ do a good job in handling various administrative affairs in the financial system, improve work efficiency and enhance team spirit.

(5) Organize the safekeeping and regular filing of documents, materials and records in the financial system.

⒔ organize the confidentiality work.

⒕ on behalf of the company, contact with relevant external departments and institutions and maintain good cooperative relations.

II. Management responsibilities of the chief financial officer

1. Organizational construction

1. Participate in discussing the organizational structure of the company above the departmental level;

(2), determine the organizational structure of subordinate departments;

(3) When the post setting or job division of subordinate departments is found to be unreasonable, it is necessary to point out the problems in time, make adjustments and notify the Human Resources Department.

1. Recruitment and appointment

A. Employment demand

(1) Put forward the employment demand of the directly subordinate position, and prepare the post responsibilities and qualifications of this position and submit them to the general manager for confirmation;

(2) Confirm the employment requirements (including job responsibilities and qualifications) submitted by direct subordinates and submit them to the General Manager for confirmation.

B, interview

(1), the initial test of the direct subordinate position;

⑵. Conduct a second interview for the direct subordinate position of the direct subordinate, and make the final determination;

(3), organize people to participate in the interview.

C, handling unqualified employees

(1), put forward suggestions on handling unqualified direct subordinates and submit them to the general manager for confirmation;

⑵. Confirm the suggestions on handling unqualified employees put forward by direct subordinates and submit them to the Human Resources Department.

13. Training

(1) Put forward the training plan for the direct subordinates and submit it to the general manager for confirmation;

(2) Confirm the training plan proposed by the direct subordinates and submit it to the Human Resources Department.

1. Performance evaluation

(1) Put forward the performance evaluation principle of direct subordinates and submit it to the general manager for confirmation;

(2), according to the performance evaluation principles confirmed by the general manager, discuss and determine the performance evaluation method with the HR manager;

(3) Evaluate the direct subordinates and communicate with them. Submit the evaluation results to the Human Resources Department.

5. Work communication

(1) Summarize the work report, communicate with the general manager, and pass this information to the direct subordinates;

(2), responsible for the company's policies, principles, strategies and other information, fast, clear and accurate.