There are about 31.7 million small businesses across America, and each of them functions with a CEO and CFO. These officials are the lifeblood of a company. They’re core decision makers, analysts, and strategists.
Here, we’re going to talk about all of the things that CEOs and CFOs are and what their roles are in a company. Read on for more information on this distinction and to learn how these top-level roles work together.
CEO and CFO: The Basics
A Chief Executive Officer (CEO) holds the highest position in the company that they run. They are in charge of the operations of the enterprise and directly report to the board of directors. Their charge is implementing any decisions by the board, though the CEO is also usually on the board themselves.
A Chief Financial Officer (CFO) operates lower in the company hierarchy than the CEO does. However, they still hold the highest financial position in the company and play one of the most essential roles in the enterprise. The CFO oversees all financial aspects of the company including both budgeting and reporting.
What Are a CEO’s Responsibilities?
CEOs are often the person that owns the company. Other CEOs are not the owners but are appointed by the board of directors. Regardless of how they came into the position, the CEO is the main person who makes executive and functional decisions for the company.
Some responsibilities of the CEO include:
- Innovate and implement changes to the company’s operations
- Work with the board of directors to implement proposed initiatives and plans
- Delegate some responsibilities to other company higher-ups
- Monitor the overall performance of the company and make alterations to boost performance
- Engage in press conferences and other media-related necessities
- Interact with and create plans with other leadership executives
While CEOs delegate small everyday decisions to other executives and managers, they oversee all big-picture aspects of their business.
What Is the Role of CFO Professionals?
A CFO reports to no one besides the CEO and the board of directors. Their role is to understand all facets of the company’s finances and ensure that it is up to date when it comes to money. They will use their analyses and expert knowledge to recommend financial action to the CEO and board of directors.
Some core CFO responsibilities include:
- Creating a budget for various company operations (sales, marketing, outreach, development, etc)
- Keeping track of expenses and revenue
- Analyzing financial data and interpreting findings
- Overseeing smaller accounting departments at different corporate branches or offices
- Being the company’s ambassador to financial institutions that they work with
CFOs generally must come from a background that includes finance and accounting. This is unlike the CEO who can come from any other position or corporate background.
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Now that you know the difference between CEO and CFO responsibilities, it’s time to begin boosting your business’s financial plan.