What is the position and main job of CFO?

What is the position and main job of CFO?

Chief Financial Officer-CFO (Chief Financial Officer) is the inevitable product of the development of corporate governance structure to a new stage. The governance structure without CFO is not a perfect governance structure in the modern sense. Do you know the position of CFO? What is the main job? Let me answer your question!

What is the position of CFO?

CFO in China, the general CFO (Chief Financial Officer) position is higher than the chief accountant, and the chief accountant position is higher than the CFO. In many private enterprises, the CFO is only equivalent to a middle-level manager. The chief accountant, due to the promulgation of the Law on Chief Accountant, is the administrative level of state-owned enterprises, higher than the chief financial officer. For example, PetroChina has set up four director levels under the chief accountant: chief financial officer, chief financial officer, chief audit officer and chief investment officer.

In the senior financial management positions of Chinese enterprises, CFO (chief financial officer), chief accountant and chief financial officer coexist at the same time, and people often confuse them. However, in fact, these three systems are not equivalent and synonymous, they are both related and different. They are not only different in written expression, but also different in historical origin, essence, position and responsibility orientation in corporate governance.

CFO originated from enterprises in some western countries, such as the United States, and first appeared in the 1970s. The chief financial officer is an outstanding senior manager of the company and plays an important role in corporate governance. They enter the decision-making level of directors and the executive level of managers at the same time and participate in the company strategy based on shareholder value creation. CFO generally manages CIO (Chief Information Officer), Controller and Treasurer at the same time. The important duty of CFO is to realize the strategic goal and long-term development of the enterprise through resource allocation. Therefore, CFO should be the manager of enterprise strategy, implement external capital control on behalf of investors and be responsible to shareholders and the board of directors.

After a series of financial scandals such as Enron and WorldCom in the United States, the relevant laws and regulations of the new American system stipulate that CFO should report to CEO and audit Committee respectively. CFO of American enterprises plays an extremely important role in the design and implementation of corporate strategy. Because the financial management of American companies has reached a fairly high level, there is no room for reducing costs. So CFO's main pressure is on the financial problems that some companies must solve to seek further development opportunities. Relatively speaking, the CFO of European enterprises still takes cost control as the top priority. For China, CFO is an imported product, which was adopted earlier in China? Chief financial officer? This title is mainly used by some internet companies and high-tech enterprises, so more and more domestic companies adopt it. Chief financial officer? This title.

? Chief accountant? The formulation of ""originated from the planned economic system of the former Soviet Union, when it was a post responsible for both the country and the factory director (manager). After entering the market economy, China enterprises are generally in? Responsible to the general manager? In this sense, the position of the chief accountant's responsibility. The State Council 1990 issued the "Regulations on Chief Accountant" about the position of the chief accountant? The chief accountant is a member of the administrative leadership of the unit, assists the main administrative leadership of the unit, and bears the main responsibility for the main administrative leadership of the unit. Where a unit has a chief accountant, there is no deputy among the administrative leading members of the unit who overlap with the functions and powers of the chief accountant? .

China's "Accounting Law" clearly stipulates that large and medium-sized enterprises with wholly state-owned and state-owned assets holding or leading position must set up chief accountants. The chief accountant system is an important economic management system in China. The establishment of the chief accountant system is the inevitable need of enterprise management and economic accounting. With the establishment of enterprises and the development of economic accounting, there will inevitably be accountants, and the chief accountant is the chief accountant. The chief accountant is the financial assistant and manager of the general manager. He was nominated by the general manager and appointed through certain procedures, which fully conforms to the interests of the operators. The chief accountant represents the management of the enterprise and is a manager-level financial manager, appointed by and responsible to the general manager. The function of the chief accountant is to be responsible for the daily management and internal management control of the enterprise. The chief accountant focuses on financial management and accounting.

The chief financial officer system originated in western countries. Before and after World War II, the state-owned enterprises in western countries developed to a certain extent. Generally speaking, the management of state-owned enterprises is to select the general manager in the talent market by the financial department or competent department that can represent the country, and the general manager will manage it on his behalf, and authorize the general manager to select suitable senior managers such as chief accountant to form a manager level to manage production and operation.

Due to the separation of ownership and management rights, these senior managers, as managers, are very different from the owners in goals, interests and behaviors. When the interests of both parties are inconsistent, managers often protect their own interests by choosing accounting policies, accounting methods and accounting procedures, thus damaging the interests of owners. In order to solve this problem, western countries have established the financial director system to supervise the general manager and managers, thus effectively avoiding this problem. Insider control? Protect the owner's interests and meet the owner's requirements for enterprise management monitoring.

In China? Chief financial officer? Where is the formula? Chief accountant? After that. Like western countries, China? Chief financial officer? The system originated from the government's appointment of financial directors to supervise state-owned enterprises, and its work involves the main aspects of financial supervision. In essence, it is the higher level development and improvement of the chief accountant system and internal audit system of large and medium-sized state-owned enterprises on the organization and operation of financial work and financial supervision. It absorbs and concentrates some financial management and supervision functions of the chief accountant and internal audit, and also makes up for the deficiency of the position, responsibility and authority of the chief accountant in the enterprise organization. Is a senior financial manager at the manager level, mainly responsible for internal fiduciary duties. At first, this title was mainly used by listed companies and some state-owned enterprises as well as other enterprises such as Shanghai and Shenzhen. Based on the good supervision effect, the CFO system has been gradually popularized. Now? Chief financial officer? This name is already very common, but its positioning among enterprises is quite different. Some enterprises? Chief financial officer? Equivalent to state-owned enterprises being responsible to the general manager? Chief accountant? . what's up Chief financial officer? What does that mean? Head of the finance department? . Are there any other companies? Chief financial officer? Equivalent to CFO. ? Chief financial officer? Some are responsible to the board of directors, some to the general manager and some to the board of supervisors.

There are some disadvantages in the system of chief accountant and chief financial officer in China. A considerable number of enterprises either did not set up the post of chief accountant in accordance with the Accounting Law, or even if they did, they were not allowed to enter the senior management. The chief accountant and chief financial officer of most enterprises ranked at the bottom of the management team. In addition, some enterprises set up the position of chief accountant or chief financial officer, not at the decision-making level of directors, but at the executive level of managers, who are only responsible to the general manager and not to the board of directors.

Because the chief financial officer and the chief accountant have different responsibilities and functions, they cannot replace each other. Therefore, in practice, it is suggested that the chief financial officer system and the chief accountant system run at the same time, but this cannot change the present situation that senior financial managers can't really be responsible for all aspects of enterprise financial management, so they have no position in the enterprise.

In fact, in order to establish an effective financial management system, titles are not the most important for senior financial managers. What really matters is the nature of the financial management system. The author thinks that CFO system is a new system completely different from CFO system and chief accountant system. In the modern corporate governance structure, CFO should not only be a member of the board of directors, but also participate in the company's decision-making as an executive director. Therefore, corporate enterprises in China should establish a real CFO system, change the current situation that chief accountants and chief financial officers can't really participate in business decision-making and risk management, and let China CFO play the role that senior financial managers should really play.

Many people in China, including some enterprises, have an inaccurate or at least incomplete understanding of CFO. Only listed companies in the United States have CFOs, and many CFOs do not specialize in finance. The finance department is only a department they are responsible for, and it is the most basic homework. The key to its value is to play a leading role in the strategy.

The chief financial officer's main work has three aspects:

First, carry out strategic operation through financial means. If the work is excellent, the added value of the company will be more than the value created by the business operation;

Second, go like a salesman? Sell? The company sells the company to investors, and the people who really decide the fate of listed companies are fund managers and large institutional investors, so investor relations are a very important issue for CFO;

The third task is to implement the company's strategy at the lowest cost through mergers and acquisitions.

From this, it can be judged that the standards of an excellent CFO are: independent judgment, super business awareness, thorough understanding of business, skillful operation of capital market and strategic vision.

Ernst & Young's survey results subvert the idea that CFO is a springboard to CEO. However, the top chief financial officers in the surveyed areas all said that they were very satisfied with their duties and positions. Only 65,438+00% CFOs in EMEIA think that becoming CEO is attractive to them. 73% people are satisfied to be a CFO, or to be a CFO in a team or a bigger company. In contrast, the same is true in the Asia-Pacific region, where 64% of the respondents are very sure that they want to continue to be the CEO of their current company or a larger company. 13% people want to be the CEO of the company to some extent.

However, in the United States, about half of CEOs believe that they will accept the position of CEO if the right person appears. Surveys show that there is usually amazing consistency in this respect, but there are great differences on this issue. [2]?

Title: Chief Financial Officer/Chief Financial Officer/Chief Accountant

Direct superior: general manager (in most countries) or board of directors (in most foreign countries).

Direct subordinates: manager of financial accounting department, manager of management accounting department, manager of audit supervision department,

Manager of Finance Department, CFO/CFO/Assistant Chief Accountant

Responsibilities: lead the planning and control of the company's financial and material resources, and prevent and control risks.

First, the financial director's business responsibilities

1. Understand the market situation under the current sales strategy;

4. Organize and lead the company in financial management, cost management, budget management, accounting, accounting supervision, audit supervision and inventory control to strengthen the company's economic management and improve economic benefits.

3. Participate in the formulation of the company's annual general budget and quarterly budget adjustment, summarize and review the monthly budget submitted by subordinate departments, and convene and preside over the company's monthly budget analysis and balance meeting.

4 responsible for the organization and implementation of important internal audit activities.

5. Grasp the company's financial status, operating results and capital changes, and report to the general manager and chairman in time.

6. Preside over the formulation of the company's financial management, accounting and accounting supervision, budget management, audit supervision, warehouse management and other systems, organize the implementation and supervise and inspect the implementation after approval.

7. Organize the implementation of relevant national financial laws, regulations, guidelines, policies and systems to ensure the legitimate operation of the company and safeguard shareholders' rights and interests.

⒏ To examine and approve the business of withdrawing cash from banks as required.

(9) Be responsible for reviewing and signing the company's budget, financial revenue and expenditure plan, cost plan, credit plan, financial report and final statement, and countersign major business plans, economic contracts and economic agreements involving financial revenue and expenditure.

⒑ Participate in the decision-making and scheme formulation of the company's investment behavior and important business activities, participate in the research and review of major economic contracts or agreements, and participate in the analysis and decision-making of important economic issues.

(1) Do a good job in handling various administrative affairs in the financial system, improve work efficiency and enhance team spirit.

5] Organize the storage and regular filing of documents, materials and records in the financial system.

⒔ Organize confidential work.

5. Contact relevant external departments and institutions on behalf of the company, and maintain good cooperative relations.

Second, the chief financial officer's management responsibilities

1. Organizational construction

(1), participate in the discussion of the organizational structure of the company above division level;

(2) To decide the organizational structure of subordinate departments;

(3) When finding that the post setting or division of work of subordinate departments is unreasonable, it is necessary to point out the problems in time, make adjustments and notify the Human Resources Department.

2. Recruitment, appointment and dismissal

First, the needs of employers

(1), put forward the employment requirements of the directly subordinate positions, write down the job responsibilities and qualifications, and report to the general manager for confirmation;

(2) Confirm the employment requirements (including job responsibilities and qualifications) submitted by direct subordinates and submit them to the General Manager for confirmation.

B. Interview

(1), the initial test of direct subordinate positions;

(2) Re-examine the positions of direct subordinates and make a final determination;

(3) Organize to attend the interview.

C. Handling of unqualified employees

(1), put forward suggestions for unqualified direct subordinates and report them to the general manager for confirmation;

(2) Confirm the suggestions on handling unqualified employees put forward by direct subordinates and submit them to the Human Resources Department.

3. training.

(1), put forward the training plan for direct subordinates and report it to the general manager for confirmation;

(2) Confirm the training plan proposed by the direct subordinates and submit it to the Human Resources Department.

4. Performance assignment

(1), put forward the performance evaluation principles for direct subordinates and submit them to the general manager for confirmation;

(2) According to the performance appraisal principles determined by the general manager, discuss with the HR manager to determine the performance appraisal method;

(3) Evaluate the direct subordinates and communicate with them. Submit the evaluation results to the Human Resources Department.

5. Work exchange

(1), summarize the work report, communicate with the general manager, and pass this information to the direct subordinates at the same time;

(2) Be responsible for conveying the company's guidelines, policies, strategies and other information to the direct subordinates quickly, clearly and accurately;

(3) Determine the written interactive work briefing system and communicate with direct subordinates.

[6] Motivation

(1) Put forward the incentive principles of subordinate departments and direct subordinates, and submit them to the general manager for confirmation;

⑵ According to the incentive principle determined by the general manager, discuss with the HR manager to determine the incentive mode.

7. Audit and control of funds

(1), examine and approve the expenditure of lower departments according to the financial system, and confirm the rationality of the expenditure;

(2) Supervise and control the expenses of subordinate departments and report the expenses to the general manager every month.

⒏ Work report

(1) Report all his work and the work of subordinate departments to the General Manager in written form on a regular basis.

(9) Demonstrate leadership.

(1) Guide, encourage and spur subordinates to work hard;

(2) There are ways to improve the work effect and efficiency of subordinates;

(3), can describe the company's strategic intention and broad prospects for subordinates.

With the acceleration of world economic integration, the competition between enterprises and enterprise groups is becoming increasingly fierce. How to build a transparent and credible capital environment and healthy and standardized corporate governance has become the focus of social attention. CFO (Chief Financial Officer or Chief Financial Officer) system, as a combination of value and resource management, capital and capital operation, evaluation and control, has been gradually valued and improved. This paper briefly analyzes the CFO system in order to benefit the developing CFO system in China.

First, the development and characteristics of foreign CFO system

In the 1970s, in order to seek a suitable corporate control mechanism and strengthen owner control, in the corporate governance structure of the United States and other countries, a company called? CFO, CFO or CFO? Important position.

With its development in Europe and Asia, this system has been widely respected and used, and there has been a unified title and different functional tendencies. In Europe, German CFO takes cost control as the primary task, and is more engaged in financial accounting, management control and financial supervision, focusing on playing the role of chief financial officer. British CFO tends to manage control and financial operation, becoming an important role after the chairman and general manager. In Asia, based on financial management, Japanese CFO participates in business management, mainly engaged in fund raising and use, company merger and so on. , play a major role in improving the efficiency of the company, more is to play the role of professional financial assistant, becoming the company's third official after CEO and chief operating officer.

The CFO system has developed to this day and is playing a role in big companies? Value engineer? Function. In corporate governance, it has the following characteristics:

1. In terms of status, CFO is a member of the board of directors (chief financial officer) at the decision-making level and the management level, and is responsible to shareholders or the board of directors; In administration and management, he is a member of the management (administrative deputy) and is responsible to the CEO.

2. In terms of responsibilities, CFO, as a director and supervisor, bears legal responsibilities such as external entrustment by shareholders; As operators and managers, they bear the internal management responsibility that is responsible to the CEO.

3. From the point of view of coordination, CFO should handle the external relations with shareholders, board of directors, audit committee and social audit institutions. At the same time, we should also handle the internal relations with CEO, internal audit institution, chief financial officer, chief financial officer and chief information officer.

4. In terms of responsibilities, it is responsible for participating in, supporting, planning and managing strategies, identifying and managing resources, creating value and coordinating interests on this basis, providing support services for value-oriented creation and process control, creating performance evaluation and incentive mechanisms, and establishing and managing risk control systems.

5. From the perspective of security, while giving CEO the unified executive power to the decisions of the board of directors, CFO and CEO should also be guaranteed the corresponding decision-making power and independent supervision power.

6. In terms of qualifications, although the United States and Japan have not issued mandatory policies and regulations, they encourage CFO to take the qualification examination and join the association through the effect of industry association recognized by the government and supported by law, improve their own ability and financial management level, and standardize the construction of CFO system.

Second, the perfection of the CFO system and the CFO system in China

Since the fall of 200 1, a series of financial and accounting scandals have broken out in large companies such as the United States, which have had a serious impact on the capital market and attracted widespread criticism and doubts about CFO's ethics and responsibilities. The author thinks that we should look for the deep-seated reasons from the system level and solve them seriously? Two misunderstandings? And then what? An argument? .

1. Unclear corporate governance responsibility or even deviation is a major misunderstanding. In the corporate governance structure, the board of directors entrusts the responsibility of asset management to the CEO, and CFO, as a member of the executive level of managers, should be responsible to the CEO in asset management, which is the requirement of efficiency mechanism. At the same time, the board of directors entrusts the responsibility of financial supervision and performance evaluation to CFO. In this respect, CFO should be responsible to the board of directors instead of the CEO, which is the requirement of the supervision and restriction mechanism. Judging from the situation of large companies at home and abroad, although CFO is generally appointed by the board of directors, CFO is responsible for the decision-making and financial supervision of the board of directors, and it is rare to be responsible to the board of directors. In reality, CFO's responsibility to CEO is greater than that to the board of directors, so it is not surprising that insider control appears.

4. Ignoring traditional financial functions and insufficient constraints is another big misunderstanding. In the process of company operation, on the one hand, it is overemphasized that CFO is responsible for CEO; On the other hand, due to the implementation of incentive systems such as options, the company's operating performance is directly related to the interests of CEO and CFO. In the case of insufficient control and restraint by insiders, there has been a phenomenon of ignoring traditional financial functions, unilaterally pursuing other functional effects or even practicing fraud, as evidenced by more than half of non-financial personnel holding CFO positions. On the one hand, these CFOs don't know enough about financial accounting business, accounting standards and related laws and regulations, on the other hand, they pursue their own interests and use accounting policies at will, which makes it difficult to guarantee the quality of accounting information.

3. It has been controversial whether the executive level of the manager and the senior financial managers of the director's decision-making level should be separated. In the corporate governance structure, it is necessary to regulate two types of senior financial managers according to the company law, but this does not mean that they are two completely separated institutions and systems. Chief financial officer, chief information officer and treasurer are not only responsible for CFO, but also undertake financial management functions, and have the power and means to report to CEO and participate in the work; CFO assumes the internal fiduciary responsibility, and at the same time is responsible for the relevant institutions of the board of directors, and accepts the supervision of the board of directors and the outside. So CFO, while becoming a bridge between CEO and board of directors, undertakes? Butler? Legal responsibility, make suggestions on company affairs and business.

For modern enterprises, fund raising, fund management and how to effectively evaluate business performance have become a deeper and more complicated professional field. CFO is in the position between shareholders and managers. They are familiar with the business risks of enterprises and understand the business performance measured by various financial indicators and non-financial indicators. While running through the whole enterprise with value management, CFO has become the most influential person in the enterprise and the manager and value manager of company resources in the new information age.

When value management becomes the mainstream of enterprise financial management, the role orientation of CFO has changed fundamentally. Nowadays, it is very important to measure CFO's work to see to what extent he can transform the enterprise into an excellent value management company and increase the value of the stock.

For modern enterprises, business strategy and financial strategy are closely related. The goal of corporate strategy is to determine the advantages of controlling the market and capital market in the company, while CFO puts forward a feasible and clearly stated auxiliary financial strategy according to the company's development strategy. If CFO can't understand the business development measures at each stage of the enterprise, then the cash flow plan, investment plan and financing plan of the enterprise will not be formulated, thus affecting the realization of the company's value. Therefore, CFO should integrate corporate strategy and financial responsibility, and become a bridge between the strategic operation center and the financial requirements of corporate investors. At the same time, CFO should participate in the formulation of the company's value creation strategy all the time, and have the ability to comprehensively cultivate enterprise value management with CEO.

As the top financial supervisor and decision-maker of an enterprise, the chief financial officer must have high professional quality and moral cultivation. The nature of CFO as a professional manager and its position and role in corporate governance structure and internal organizational structure determine the special connotation of his professional ethics. CFO should be unconditionally loyal to the laws and principles of capital operation, not only to the board of directors, but also to all stakeholders of the company and even to the public. So CFO's professional ethics is higher than that of ordinary accountants, which should be reflected? Public interest first? And then what? Social responsibility takes precedence? Employment principle.

1) CFO's professional ethics construction should adhere to four basic principles.

The basic principles of the professional ethics of the chief financial officer are the fundamental principles for the chief financial officer to adjust and deal with various financial relations within the scope of performing his duties, including the principles of independence, social interests, accounting information quality and professional prudence. These principles are the moral bottom line that CFO must abide by in his career. This problem mainly has the following points:

The principle of independence. This is the basic principle to ensure the sustainable development of the CFO system. To adhere to this principle, we need to do the following three things:

First, the independence of personnel affiliation. CFO should be appointed by shareholders or by the board of directors as in developed market economy countries. In personnel relations, CFO should be independent of business operators. General manager, factory director and other internal management personnel have no right to appoint or remove CFO, nor may they concurrently serve as CFO.

Second, the independence of economic interests. CFO shall be paid by the shareholders or the board of directors, and shall not obtain company benefits from the company in any form, nor hold other positions in the management of the company.

Third, responsibility and rights are independent. CFO has independent financial rights and responsibilities, and independently exercises these rights and responsibilities in financial management, and its functions and powers do not overlap with those of the general manager.

The principle of social interest. This is the fundamental principle for CFO to standardize and deal with professional relations. Under the condition of market economy, an enterprise is a collection of interests composed of many stakeholders. Starting from the maximization of enterprise value, the interests of investors, creditors, the public including the state are collectively referred to as social interests. When making financial management decisions, CFO must protect social interests, organically combine social interests with unit interests and personal interests, and make overall plans to make enterprises' funds more efficient.

3. The principle of accounting information quality. This is the basic principle of ensuring the quality of accounting information and not making false accounts. The quality of accounting information consists of many standards, and the truthfulness, reliability, openness and transparency of accounting information are the core of accounting information quality. CFO's professional activity is to lead and supervise accountants to provide relevant and reliable accounting information in order to serve relevant interest groups. To ensure the quality of accounting information, CFO should start with improving information transparency, constantly pursue the authenticity and reliability of accounting information, and constantly adjust and correct all kinds of wrong behaviors that affect the authenticity of accounting information. This is the core principle for CFO to maintain and ensure accounting fairness.

The principle of professional caution. This means that CFO should have strict professionalism and be cautious in the process of repeatedly performing his duties. Due to the nature of the financial director's professional activities, the financial director is always faced with various financial risks and operational risks. Therefore, we must bravely face the risks, make a reasonable estimate of the risks, give full play to the professional talents of financial managers, make correct professional judgments and investigations, always adhere to the principle of professional prudence, and never make unnecessary risky decisions.

(B) CFO's professional ethics construction should establish a moral self-discipline mechanism

Professional ethics self-discipline mechanism refers to the accounting professional ethics consciousness formed by the chief financial officer in the process of fulfilling his financial and accounting management obligations in his professional activities. This self-discipline mechanism is reflected in the strong sense of professional ethics when performing CFO's profession, and it is also the ability of CFO professional groups to evaluate themselves according to accounting professional ethics standards. CFO must be self-disciplined before he can be heteronomy. Without self-discipline, it is impossible to talk about CFO's professional ethics by transforming external constraints into internal constraints. The establishment of CFO's moral self-discipline mechanism should mainly start from the following aspects:

1. Establish common values with professional ethics and social responsibility as the content, and gradually form CFO's hidden professional rules with this as the core, or form a cultural atmosphere to create a good social atmosphere for CFO's professional ethics. The wind of clean government is an example that CFO should follow, so we should start with clean government first.

The establishment of CFO trade association. Formulate professional code of conduct and moral example, and regularly carry out professional ethics training and education for members, and institutionalize it.

13. Formulate CFO code according to China's actual situation, and stipulate the professionalism and reliability of CFO in the code, so as to accept the supervision of the state and the public. Any CFO who is reported to the trade association or the legal department during the year must file an investigation. If there is any violation, according to the seriousness of the violation, the relevant departments shall be requested to revoke their duties or pursue their legal responsibilities.

4. Increase the cost of CFO violation. Once any violation is found, even if there is no legal responsibility, the professional qualification of accounting-related majors will be cancelled for ten years.

5. Strengthen legislation. The financial department will introduce CFO's professional law, formulate CFO's rights and responsibilities in the form of legislation, and link the rights and responsibilities with remuneration, formulate CFO's minimum wage standard, improve CFO's social status, and make CFO a respected and law-abiding profession.

Public opinion and CFO's own professional ethics level influence each other. It is also a good way to improve the professional ethics of CFO in China to reward CFO with high professional ethics, professionalism and integrity and commend him vigorously through the news media.

To sum up, the requirements for CFO's professional ethics are different from ordinary accounting, and should be studied as a special topic. The construction of CFO's professional ethics is related to the healthy development of China's capital market and the survival of enterprises, which should be highly concerned by the whole society.

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