CFO

abbreviation
Updated on: 26 Jul 2017

Definition of CFO

  1. chief financial officer


Financial Definition of CFO

CFO

What It Is

The chief financial officer (CFO) oversees the financial operation of a company or organization.

How It Works

The CFO's job is to coordinate effective financial, accounting and tax strategies to maximize shareholder value. In most cases, the company's chief executive officer (CEO) CFO. Sometimes the CFO has a seat on the company's board of directors.

CFOs have four major responsibilities.

Why It Matters

Wherever money is involved in a company, so is the CFO, which is why virtually every decision in every area of a company requires some attention from the CFO. For example, when the marketing department wants to launch a new campaign, the CFO may weigh in on the availability of funds for the campaign or may impose measurements to ensure the campaign is financially productive. Many CEOs are former CFOs.

Ultimately, the CFO's job is to protect and improve the financial integrity of the company. Good CFOs recognize that financial performance is the single most important factor affecting a company's value, and therefore most CFOs are keenly attuned to how decisions affect share value. When a company shows poor financial performance, the CFO is often held accountable, especially if he or she failed to anticipate the financial trouble far enough in advance to correct it.


Learn More about cfo


Seen and Heard

What made you want to look up CFO? Please tell us where you read or heard it (including the quote, if possible).

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

WORD OF THE DAY

to fight against or to call in question

Get Word of the Day daily email!

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!