Chief Financial Officers and Strategic Planning Essay

1993 Words 8 Pages
Every major company with an executive committee has a CFO. The CFO plays a big part in the organisation as he is the one that handles the financial aspect of the company. He should have the knowledge about the company’s cash flow, its assets and liabilities, financial records, budgetary control, investments and shares among other things. It may sound simple but before the CFO can report back to the executive committee if the company is making money or losing it, he has to go through the different departments of the company that deal with the finances such as the sales, finance and accounting departments. Depending on the size of the company, the CFO will have varied scope of responsibilities and range of departments which he …show more content…
He will give the information on the plan to the Board, its development process and how the plan would be monitored of its faults or areas that need change or improvement. This will include deciding where to invest money or provide start-up capital if the company is interested in new ventures.

Also, because of his financial information, he can determine how much budget will be assigned to any department or project of the company and how this budget will be controlled to make sure that it is efficiently used. The projected profit of the products or services offered by the company and how much time it will take for that investment to be profitable are also concerns of the CFO especially if the company is going to implement a strategic plan that will deal with a new venture or product.

The CFO is an important part of drafting the strategic plan as he has access to the financial information of the company as well as expertise with analysing the process by which the quality and feasibility of the plan can be evaluated. He should be involved in both the planning and monitoring stages of the strategic plan along with the board of directors. He should also have the knowledge of the company’s performance in the stock market and how the company is being viewed by its stakeholders so he can properly allocate the company’s financial resources in future goals that will help improve the company’s finances and value. The CFO

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