CFO (Chief Financial Officer): meaning, role and responsibilities
Make an appointmentCFO stands for Chief Financial Officer. It is the executive who runs a company's finance function: cash, accounting, financial planning, reporting and, in most companies, the relationship with banks and investors. The CFO sits on the executive team and reports to the CEO.
In finance, the title carries a specific weight. A CFO is not the person who keeps the books — that is the accountant or the controller. The CFO decides what the numbers mean and what the company should do about them.
What does a CFO do?
The scope varies with company size, but six responsibilities are near-universal:
Financial planning and analysis (FP&A) — budgets, forecasts, scenario modelling, variance analysis against plan.
Cash and treasury — cash-flow forecasting, working capital, banking relationships, debt.
Accounting and reporting — monthly close, statutory accounts, audit, management reporting.
Fundraising and investor relations — equity and debt raises, board reporting, due diligence.
Risk and compliance — tax, regulatory obligations, internal controls, insurance.
Strategic support to the CEO — pricing, unit economics, hiring plans, M&A, market entry.
CFO vs finance director vs controller
The three titles are often used loosely, and the distinction matters when you are hiring.
A controller owns the accuracy of the numbers: closing the books, compliance, controls. The work looks backwards.
A finance director owns the finance department and its processes. In Europe, and particularly in France, the title covers a broader administrative remit than its Anglo-Saxon equivalent.
A CFO owns the financial strategy and answers to the board for it. The work looks forwards. In practice, a small company's finance director and a startup's CFO do much the same job under different names — the title reflects the company's culture more than the scope.
When does a company need a CFO?
Revenue alone is a poor trigger. Complexity is the better one: multiple entities, several currencies, a funding round in preparation, an investor on the board, or a management team making decisions without reliable numbers.
Below that threshold, a controller plus an external accountant usually suffices. Above it, the absence of a CFO shows up as decisions taken late, forecasts nobody trusts, and due diligence that surfaces problems the company did not know it had.
What is a fractional CFO?
A fractional CFO is a senior CFO who works for several companies at once, a few days a month each. The model gives a company executive-level financial leadership without the cost of a full-time hire, and it is now common in startups and SMEs across Europe and North America.
It suits companies that need the judgement of a CFO but not the presence of one every day — typically those preparing a funding round, coming out of one, or running a finance function that has outgrown its bookkeeping.
Iter Advisors provides fractional CFOs to companies in France and Spain. Our outsourced CFO offering sets out how the engagements work, and our shared-time CFO page covers the recurring format specifically.
Frequently asked questions
What does CFO stand for? Chief Financial Officer. It is a job title, not a qualification.
What is the difference between a CFO and a CEO? The CEO runs the company and owns its overall direction. The CFO runs the finance function and owns the financial consequences of that direction. The CFO reports to the CEO.
Is a CFO the same as an accountant? No. An accountant records and reports transactions. A CFO uses that record to plan, decide and raise capital. Many CFOs began as accountants, but the roles are distinct.
What is the difference between CFO and CFA? CFA (Chartered Financial Analyst) is a professional certification, mostly held in asset management and investment analysis. CFO is a position on the executive team. The two are unrelated.
Can a CFO be part-time or outsourced? Yes. Fractional and outsourced CFO arrangements are established practice, particularly for companies below the size that justifies a full-time hire.
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