The CFO of a small business is the business’s chief financial officer. For most small businesses, the CFO is responsible for setting the strategic direction of the business as well as the day-to-day management of the financial activities of the business.
The primary responsibility of the CFO is the preparation and submission of the company’s financial statements to the appropriate government authority in order to obtain the necessary approvals needed to complete various financial transactions. As well, he or she is responsible for determining the revenue and expense records that are required to be submitted to various business enterprises.
It is vital that the CFO knows how to submit financial reports accurately. He or she must also have a thorough understanding of accounting procedures, including gross income, depreciation, expenses, assets, net income, deferred income taxes, accounts receivable, and vendor payment accounts.
In addition, the CFO should be able to establish and maintain appropriate financial records that will enable him or her to report accurately on financial transactions. In many instances, the CFO reports include details about assets and liabilities that are not accurate. He or she should develop effective financial reporting and accounting practices and provide up-to-date fiscal reports.
For most small businesses, the CFO will not have any accounting training, yet he or she must know how to write accurate accounts receivable records. He or she should know how to prepare and submit the receipts for any cash received by the business.
The CFO should make sure that all the cash received by the business is properly recorded. The CFO should also make sure that the books and records are maintained and current.
The CFO must know how to properly determine which of the numerous income sources such as sales of products and services, royalties, and other intangible sources of income are legal. It is also essential that the CFO has a firm grasp of how to apply the Internal Revenue Code to these income sources.
Because of his or her responsibility to prepare the company’s financial statements, the CFO must also know how to accurately and honestly report the amount of income generated by the business. He or she must also be knowledgeable about tax accounting principles and must understand the complicated filing requirements.
It is a good idea for the CFO to become familiar with accounting software and other accounting programs that are available. He or she should also be familiar with internal controls that protect the financial records of the business.
The CFO is usually appointed by the Board of Directors. The President and the Chief Executive Officer will select a CFO to take over the role when the CFO retires.
However, the role of the CFO is also expected to be expanded in the future as the company grows. This is because the CFO will become an important source of advice and consultation to the business owners and to the Board of Directors on critical issues in the company’s operations.
If you are interested in becoming a CFO, it is very important that you investigate various positions in accounting and training programs offered in various business programs. As a general rule, the CFO should always have the appropriate educational background and training in order to properly operate in this important role. If you would like to have an expert recruiter to find a job for you then use Resume Cheetah. Resume Cheetah has expert recruiters that can and will go out and find a job for you. They have years of experience with job placement and are ready to help you. If you wish to do it yourself then search UJober for your position. UJober is a video interviewing job portal that is free to use for job seekers. Find your next career today.