CFO: definition, role and responsibilities of the finance director

Published by Iter Advisors · updated on 2 October 2026

The CFO, or Chief Financial Officer, leads a company's finance function: cash flow, budgeting, reporting, financing and accounting coordination. The CFO helps management understand results, anticipate needs and prepare decisions. The scope depends on the company's size and organisation.

The French title DAF (directeur administratif et financier), finance director and CFO refer to related roles. DAF emphasises administrative responsibilities, which may include payroll or HR coordination. These responsibilities must be agreed with the relevant teams and advisers. To delegate this work to a Fractional CFO, see our service overview.

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The CFO's main responsibilities

Cash flow and working capital: monitor receipts, payments and commitments; build forecasts, document assumptions and prepare banking discussions. Working capital requirements help explain the gap between trading activity and cash flow.

Budgeting and financial strategy: develop revenue, cost, investment and recruitment scenarios. The CFO highlights trade-offs; management retains the decisions that fall within its authority.

Reporting and management accounting: reconcile data, track results and explain budget variances. Management accounting supports margin analysis by activity, product or channel.

Accounting and closing: organise data collection, the calendar and account reviews with the accounting team, external accountant and, where applicable, statutory auditor. Each party's responsibilities remain defined by their respective mandates.

Financing and transactions: prepare a financial model, data room and discussions with investors or lenders. Depending on the mandate, the CFO contributes to the financial work for acquisitions, disposals and integration.

Administration and risks: coordinate deadlines, controls and access to tools. In some SMEs the CFO also monitors administrative or HR matters with the relevant professionals, without replacing their expertise.

Skills and career paths

The role combines accounting and finance skills, data analysis, business understanding and the ability to explain choices to management. The CFO must work with operational teams, banks and external advisers.

Career paths may include audit, management accounting, accounting or finance leadership. Experience and knowledge of tools must fit the context: an SME, startup, subsidiary or multi-entity group. There is no single career path suited to every engagement.

Automation can support data collection and reporting preparation. Data controls, confidentiality and human validation remain necessary. Our AI and finance resources explain applications and their limitations.

In-house, part-time or interim CFO: how does it work?

In-house: the CFO is employed within the company. This model may suit a sustained need for daily presence and management of the finance function.

Part-time: the professional supports several companies on a recurring basis, with agreed scope and availability. Explore our Fractional CFO service for responsibilities, contacts and documented cases, then part-time working arrangements for ongoing coordination.

Interim: the CFO takes on a temporary replacement or transformation mandate and organises the handover. Our interim CFO service explains the relevant situations and responsibilities to agree.

Salary, fees and budget: compare like for like

A CFO's gross salary, total employer cost and a firm's fees are three different amounts. Compare scope, seniority, availability, employment costs and any additional expenses before comparing budgets.

Iter's pricing sets out the firm's retainers; it is not a salary survey or study of market prices. The Fractional versus in-house CFO comparison explains the decision criteria.

Return on investment cannot be promised from the first month. Results are measured over an agreed period: reporting quality, cash visibility, verified savings and decisions supported.

Working in this role at Iter

For the profiles sought and application process, see becoming a Fractional CFO at Iter Advisors. Recruitment terms are separate from client pricing.

FAQ: the CFO role

What does DAF mean?

DAF is the French abbreviation for directeur administratif et financier: administrative and finance director. The role coordinates financial management and, depending on the organisation, some administrative functions.

What is the difference between a DAF and a CFO?

CFO means Chief Financial Officer. The titles describe related roles; the actual responsibilities matter more than the job title.

How does a CFO differ from an external accountant?

The CFO organises financial management and prepares decisions with management. The accountant performs the work set out in the engagement letter. The roles complement each other and responsibilities must be clearly allocated. See our CFO and accountant comparison.

Must a CFO be a chartered accountant?

The French expertise comptable qualification is not a general prerequisite for a DAF role in France. This description does not establish professional requirements in another country. Required skills and qualifications depend on the work entrusted; regulated activities remain with authorised professionals.

Can an SME have a CFO without a full-time hire?

Yes, a Fractional CFO can work within an agreed scope. Needs, internally handled work and expected availability determine the appropriate arrangement.

Working as a CFO at Iter Advisors

Interested in this profession? Our Fractional CFO careers page describes the working framework. Current vacancies explain the profiles sought and how to apply. This recruitment journey is distinct from the CFO service for businesses.

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