Chief financial officer: its impact on business success

THE DUTIES OF A FINANCE DIRECTOR

The role of the CFO is multi-faceted and requires a wide range of skills and expertise, fundamental to long-term financial success.Their importance in the life of a company is vital, as their duties dictate the basis of all its financial and strategic management. 

Financial planning

Developing and implementing financial strategies that ensure sustainable long-term company growth is one of the main functions of these professionals. This involves budgeting, financial forecasting and investment analysis. 

Risk management

The CFO must identify, assess, and manage the financial risks facing companies. This includes assessing risks related to market volatility, checking changes in legislation or being aware of economic crises and their economic and social impacts.

Accounting and financial reporting

The job of Chief Financial Officer involves ensuring that the organization is always in compliance with current accounting standards and financial regulations. S/he oversees the preparation and analysis of financial reports and ensures transparency of accounting information. 

Fundraising

When taking over the financial management of a company, this professional must be responsible for managing its capital structure and making decisions on fundraising. They seek sources of finance, negotiate loans and credit lines with financial institutions and investors. 

Cash management

A Financial Administrator may also oversee cash management, actively monitoring the company's cash inflows and outflows. This ensures that all resources are maintained so that the company's obligations are met and that the use of its available financial resources is optimized.

TRAINING AND COMPETENCES

To become a CFO, you need to have a higher education degree in areas such as Finance, Economics, Accounting or Business Administration. In addition, it is recommended to obtain professional certifications, such as in Analytical Accounting. And what are the skills needed for a successful CFO?

• Excellent analytical and problem-solving skills;
• Comprehensive knowledge of accounting and finance notions;
• Ability to make strategic decisions based on financial analyses;
• Ability to communicate and work in a team;
• Strong leadership and management skills;
• Ability to deal with stressful situations and good quick and assertive decision-making skills.

In addition to these skills, a person with this type of responsibilities should be a reliable, ethical, and results-orientated professional. You also need to be able to work independently and make tough decisions when necessary. In addition, the CFO must have a holistic view of the business, understanding how financial decisions affect a company's performance and strategic direction.

REMUNERATION AND SALARY PROGRESSION

The remuneration of a CFO varies according to the size and industry of the company, as well as its experience and qualifications. According to salary surveys, the average remuneration of a CFO in Portugal can range from approximately €50,000 to €80,000 per year. Salary progression in the career of a finance director can be significant, especially as you gain experience and take on greater responsibilities. In addition, obtaining professional certifications and demonstrating solid results can accelerate salary progression.

ARE YOU LOOKING FOR A NEW CAREER OPPORTUNITY?

Portugal is a very attractive country for those who want to work in finance and accounting, and the labor market in our country has had a wide range of professional offers in this area. Fed Finance is a company specialized in financial professions operating since 2001. In Portugal, it can offer you all the support in your professional project, from the first interview to the hiring of a job. So, if you are looking for a new career opportunity, just fill in the form and a consultant will analyze your request and contact you as soon as possible. If you prefer, you can also check out our CFO job vacancies.