What is a CFO (Chief Financial Officer)?
The Chief Financial Officer (CFO) is a key player in the management of a company. He oversees financial and administrative strategy to ensure the organization's sustainability and growth.
The CFO's job involves much more than managing accounts and budgets. It involves an overall strategic vision of a company's financial health, risk management and supervision of financial teams.
Sectors where the presence of a CFO is essential include SMEs, ETIs and large groups, but also fast-growing start-ups requiring structured financial management.
What is the role of a CFO?
The CFO's role is strategic and cross-functional. It covers financial management, risk control and team supervision.
Financial and strategic management
- Prepare, monitor and adjust the company's budget forecast.
- Supervise financial statements: balance sheet, income statement, cash flow statement.
- Guarantee the company's profitability and financial sustainability.
- Manage financial strategy: fundraising, cash flow optimization, investments.
Supervision of financial teams
- Manage and lead accounting, management control, treasury and finance teams.
- Set up optimized financial processes: reporting, automation of repetitive tasks.
- Train and educate teams in sound financial management.
Stakeholder relations
- Maintain strong relationships with investors, shareholders and financial partners.
- Internal and external financial communications.
- Participate in negotiations with banks for financing or lines of credit.
Why and when should you call in a CFO?
Calling on the services of a CFO is often seen as the preserve of large companies. Yet CFOs play a key role in all organizations requiring rigorous financial management.
The benefits for a company :
- Improved profitability: precise monitoring of margins, cost management and optimization of financial processes.
- Strategic decision-making: based on reliable financial indicators and accurate forecasts.
- Reducing financial risks: proactive risk management (lack of liquidity, uncontrolled debts).
Signs that a company needs a CFO :
- Rapid growth requiring structured follow-up.
- Cash management or profitability problems.
- The need to optimize costs and secure financing.
- Fundraising or major restructuring.
Essential skills and qualities of a CFO
The CFO profession requires solid technical skills and human qualities to effectively lead the finance team and influence strategic decisions.
Technical skills :
- Mastery of financial tools: reporting software, cash management and ERP.
- In-depth knowledge of accounting and tax standards (IFRS, French standards, consolidation).
- Advanced financial analysis: ability to interpret financial indicators and make recommendations.
- Management control skills: budget monitoring, financial forecasts, KPIs.
Essential soft skills:
- Leadership: ability to unite financial teams.
- Interpersonal skills: essential for communicating with stakeholders.
- Decision-making and priority management.
- Analytical and synthesizing skills.
Case study
Ukio
Training and career paths to become a CFO
The path to becoming an Administrative and Financial Director is based on solid studies and significant experience in financial functions.
How do you become a CFO?
- Minimum 5 years' higher education: Master's degree in finance, management or management control.
- Popular qualifications: business schools (HEC, ESSEC, EDHEC) or specialized university courses (IAE, Paris-Dauphine).
- Financial certifications: CFA (Chartered Financial Analyst), DSCG (Diplôme Supérieur de Comptabilité et de Gestion).
Required professional experience :
- They often start out asauditors or management controllers.
- Progression to Finance Manager roles before moving up to CFO.
- Experience in managing strategic financial projects.
How much does a CFO earn?
CFO remuneration varies according to several criteria: company size, location and sector of activity.
Current salary ranges :
- SMEs: €70,000 - €120,000 / year.
- ETI and large groups: €120,000 - €250,000 / year.
- Outsourced or freelance CFO: €1,000 - €1,500 / day.
Career development :
- Access to positions as Managing Director or independent financial consultant.
- Opportunity to become a partner in financial consulting firms.
Why is the CFO's role strategic for a company?
The CFO is much more than a numbers manager: he's a strategic partner for senior management.
It guarantees financial stability, drives growth and secures the company against economic risks.
Calling on an experienced CFO can help improve profitability, secure financial management and ensure informed decision-making.
Does Iter Advisors offer CFO support?
Iter Advisors does not directly provide in-house CFOs, but supports companies in :
- Efficient financial processes.
- Strategic management with modern financial tools.
- Cost optimization and budget management.
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FAQ : Frequently asked questions about the CFO (Chief Financial Officer) profession
What is a CFO, and what exactly is his or her role?
The Chief Financial Officer (CFO) is responsible for the overall financial management of a company. His role is to oversee the company's financial health, optimize profitability and ensure its long-term viability. He draws up financial strategy in agreement with general management, and coordinates all activities linked to accounting, treasury, taxation and management control.
When does a company need a CFO?
A CFO is essential in a number of situations:
- Rapid growth phase: to structure financial management and secure expansion.
- Fund-raising: To prepare a solid financial file and reassure investors.
- Cash flow problems: To anticipate and correct financial tensions.
- Restructuring: During a crisis or reorganization requiring rigorous management.
- Audit and compliance: To ensure compliance with accounting and tax standards.
Is a CFO essential for all company sizes?
No, but it is becoming essential:
- Startups and VSEs: An outsourced CFO may suffice for initial structuring.
- SMEs and SMIs: A part-time or outsourced CFO is recommended for strategic management.
- Large companies: A full-time CFO is often essential to oversee complex financial management.
What's the difference between a CFO and a chartered accountant?
- The CFO is a strategic player who oversees all financial management, participates in investment decisions and anticipates financial risks.
- Thechartered accountant is more of a technical operative: he keeps the accounts, prepares tax returns and guarantees accounting compliance.
In short: the accountant manages compliance, while the CFO steers overall financial strategy.
Does a CFO have to be a member of the Executive Committee?
Yes, the CFO occupies a strategic position and generally sits on the management committee. His or her presence ensures informed decision-making on financial issues, provides a global vision of the company's resources, and directly advises the CEO on the viability of medium- and long-term projects.
How does the CFO contribute to a company's growth?
The CFO is more than just a controller. He is a true strategic pillar of growth:
- Development of appropriate financing strategies: fundraising, loans, grants.
- Resource optimization: budget allocation, cost management.
- Financial forecasting: Modeling growth scenarios.
- Support for international expansion: currency risk management and multinational taxation.
What is a CFO's legal responsibility?
The CFO has an important legal and moral responsibility:
- Ensuring tax and accounting compliance: compliance with tax, social security and legal standards.
- Ensuring the accuracy of accounts: Presentation of audited and transparent financial documents.
- Preventing financial risks: up-to-date tax returns, managing disputes with the authorities.
He may be held criminally liable in the event of fraud or wilful failure to comply with regulations.
Should the CFO be involved in the company's HR strategy?
Absolutely. The CFO often works closely with the HR department to :
- Control payroll and forecast associated costs.
- Evaluate the financial impact of recruitments and departures.
- Participate in setting up compensation policies (bonuses, incentives, profit-sharing).
This collaboration aligns HR decisions with the company's financial health.
What tools does a CFO use on a daily basis?
A CFO relies on several specialized tools:
- Financial ERP (Enterprise Resource Planning): SAP, Netsuite, Sage.
- Reporting tools: PowerBI, Tableau, Looker.
- Cash management software: Kyriba, Agicap, Orama
- Budget forecasting solutions: Anaplan, Pigment.
- Advanced spreadsheets Excel, Google Sheets (often customized).
Can a CFO play a role in a company's digital transformation?
Yes, the modern CFO is a key player in digital transformation:
- Deployment of automated financial management tools.
- Optimization of accounting processes (invoice automation, OCR).
- Real-time monitoring of performance indicators via digital dashboards.
This modernization helps improve efficiency and reduce errors.
What role does a CFO play in risk management?
The CFO is a pillar of financial risk management:
- Liquidity risk analysis: Avoiding cash flow tensions.
- Tax and legal risk management: Ensuring regulatory compliance.
- Credit risk prevention: Assessment of customer payment terms.
- Strategic risks: Assessing the financial impact of investment decisions.
Is it possible to progress from accounting to CFO?
Yes, but this usually involves a gradual process:
- Management Controller > Administrative and Financial Manager (RAF) > CFO.
- Developing strategic and managerial skills is essential.
- Training in financial steering tools and cash management is a plus.