Show Difference Between CFO vs CEOBoth the position in an organization play a vital role in organization growth. Any titles are given to a person to show what duties and responsibilities they have in the organization. This both CFO vs CEO term exists because of corporate governance. Incorporate the world many workplace titles which differ from organization to organization. To look after the interest of shareholders, many organizations follow or adopt two-tier corporate hierarchies. The first tier is the board of directors. The second tier is the organization’s upper management (COO, CEO, and CFO). Some large companies use titles such as CEO, CFO, CTO, and so on whereas smaller organizations may use president, vice-president, director, etc. These top executives are responsible for making decisions that lead to achieving the organization’s financial and non-financial goals. All top executive positions required leadership skills and the ability to develop and implement a strategic vision to support the organizational goals. The most common and top positions across all industries are CFO vs CEO. These two positions and people associated with this position are the most powerful and influential people in the organization. Let discuss these two CFO vs CEO positions in detail. Chief Executive officer (CEO)CEO is the highest or topmost position in an entire organization. The CEO is a leader of the organization and plays an important role between a board of directors of the organization and various organization levels. The CEO is responsible for the success and failure of the organization. CEO of the organization is appointed by the board of directors and report to them. One of the CEO’s major duties is to implement the corporate policy, which is directed by the organization board. The CEO provides a vision and sets the organization’s culture. CEO’s exact duty can be vary based on a number of factors, including the size of the organization and whether it’s a public or private organization. Chief Financial officer (CFO)CFO is the highest ranking in financial position. So as the name suggests the main role of the CFO is to manage the finance of the company. CFO is an important part of organizational leadership. CFO helps leadership in taking financial decisions and executing those decisions. CFO’s Job is to make an organization financially strong and as profitable as possible. CFO reports directly to the CEO and has substantial inputs into organization investment, capital structure, and money management. CFO’s main responsibility is to maintain and improve the organization’s financial health. CFO is an economist of the organization, responding to both macro and micro parameters. CFO spends the most time looking forward to how will next quarter or year looks like. The role of the CFO is to raise funds, understand capital markets, profit planning, Distribution of funds and profit, etc. Head to Head Comparison Between CFO vs CEO (Infographics)Below is the top 7 difference between CFO vs CEO Key Differences Between CFO vs CEOBoth CFO Vs CEO is a topmost and important position in the organization. Let us discuss some of the major differences :
CFO vs CEO Comparison TableLet’s look at the top 7 Comparisons between CFO vs CEO.
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March 02, 2022 March 02, 2022/ There are significant differences between the roles of the chief executive officer (CEO) and the chief financial officer (CFO), which are noted below. ResponsibilitiesThe CEO is responsible for all activities within an organization, while the CFO is responsible solely for the financial side of the business. Reporting RelationshipsThe CEO position is overseen by the board of directors, while the CFO position reports to the CEO. The CEO is responsible for the overall strategy of the organization, as well as the tactics used to achieve that strategy. The CFO is responsible only for the financial support of the corporate strategy, which means ensuring that there is sufficient cash to support strategic needs, monitoring the profitability of the business, and mitigating its risk. DevelopmentThe CEO is responsible for finding and grooming personnel within the company for management positions. The CFO only does so within the finance and accounting areas. LiaisonsThe CFO has a significant liaison role, since this individual interfaces with investors, bankers, lenders, and regulators. The CEO does not have any liaison roles, but is the public face of the business, making speeches and meeting with the press and community leaders as needed. AnalysisThe CFO is responsible for reviewing all aspects of the business to see if the various operations are controlling costs in an appropriate manner, and whether resources are being allocated correctly. The CFO reports these findings to the CEO, who makes decisions about how to alter operations to make the firm more efficient and effective. March 02, 2022/ |