Updated: Tuesday, 16 September 2025
In this article, we answer the question: what does a Chief Financial Officer (CFO) do and how they integrate into the financial structure of a business or organisation.
This article is written by Sue Hirst, Co-Founder of CFO On-Call.
Sue co-founded the business in 1991 and has over three decades of experience in business and financial management. She is passionate about making accounting concepts clear and practical, helping business owners understand their numbers and make confident decisions. With a focus on plain-English explanations, Sue has guided countless businesses in building stronger financial foundations and long-term success.
What is a CFO?
A chief financial officer (CFO) is an executive officer responsible for creating and implementing financial strategies that manage the past, present, and future financial situations and actions of an organisation.
The CFO monitors financial statements, manages liquidity, analyses financial reports, and forecasts future cash flows within the organisation.
Why Staying on Top of Finances Is So Difficult
As a business owner, staying on top of your finances can seem like a never-ending process. Your sales are strong, your customers and staff are happy, and your business is clearly growing—but there never seems to be enough money in the bank to do everything you want.
Inevitably, that leads to doubts as to whether you’re even making money in business. The truth is, if you can’t diligently monitor your financial situation, it’s near impossible to know if you’re actually making or losing money.
Why Accountants and Bookkeepers Aren’t Enough
To help monitor finances, many business owners rely on external accountants to manage tax and compliance and bookkeepers to record and keep financial transactions.
While accounting firms and bookkeepers are very beneficial in keeping financial records accurate and organised, there still remains a gap between these two—and that is financial strategy.
Financial Strategy: The Missing Piece
Financial strategies tackle more than just historical data—they identify ways to improve your financial situation, positively impacting your business’s profitability.
So, if you want to make sure you’re paying yourself what you deserve and that your cash flow management paints an accurate picture of your finances, you need to consider implementing an effective financial strategy.
That means hiring a CFO.
What Does a CFO Do?
A CFO, short for Chief Financial Officer, is responsible for managing the past, present, and future financial situations and actions of an organisation.
They do this by focusing on creating financial strategies that help drive a business to succeed.
A CFO’s goal is to unlock more opportunities while taking into account current financial constraints and finding ways to overcome them as the business grows.
Controllership (The Past)
Controllership duties focus mostly on the “past” aspect of a CFO’s responsibilities. CFOs do a lot of reporting, ensuring that they present accurate and timely historical data relating to the organisation’s finances.
The CFO is in charge of monitoring the accuracy of financial statements required for all shareholders, employees, creditors, analysts, and regulatory bodies, since many decisions are based on this information.
Treasury (The Present)
The CFO is also responsible for the organisation’s current financial situation.
They manage cash flow and decide how to invest money based on historical financial information and by assessing potential risk. This is one of the most important responsibilities of a CFO.
The CFO also oversees the organisation’s cash balance and working capital, determines how to balance debt, equity, and internal financing, and makes decisions on issues relating to liquidity.
Economic Strategy and Forecasting (The Future)
Businesses also heavily rely on the CFO for financial forecasting and long-term business planning and funding for business growth.
This means a CFO pinpoints the areas of finance that are most efficient, then uses this information to generate objectives that improve performance and maximise return on investment.
This includes financial planning and analysis, where the CFO forecasts the business’s future cash flow and identifies the best strategies for sustainable profitability.
Because of this, the CFO plays a critical role in the organisation’s decision-making processes.
Other Duties of the CFO
While controllership, treasury, and economic strategy and forecasting are the most important roles of a CFO, their duties aren’t limited to these three main aspects. CFOs also help in the following areas:
- Compliance – Many CFOs manage compliance with federal, state, and local laws to ensure that the business meets all financial standards, avoiding penalties and legal risks.
- Policy development – CFOs often develop and implement internal policies that align with financial goals and governance frameworks.
- Capital raising – In growing businesses, CFOs may assist with preparing financial documents for funding rounds or liaising with investors and lenders.
Beyond the Numbers: The CFO’s Role in Operational Insight
While finance-focused, many CFOs also play a broader role across the business—especially in areas that impact performance and efficiency.
Non-financial KPIs
CFOs often help define and measure non-financial KPIs. These might be operational metrics like customer satisfaction, staff retention, project turnaround times or productivity levels—key indicators of how the business is performing day to day.
Operational processes
CFOs also review internal processes to find inefficiencies or friction points that are impacting profitability and improve overall systems, controls and improvements. This might be reviewing supply chains, delivery models or even HR workflows to find issues that don’t show up on the balance sheet but hit the bottom line.
While these sit outside traditional finance, they are within a CFO’s remit. Their analytical mind, attention to detail and commercial acumen mean they are well placed to identify and fix issues that impact both performance and profit.
What Are the Qualifications of a CFO?
CFOs carry large responsibilities that are crucial to business success, which means you can’t hire just anyone for the role.
Finances are the most sensitive facet of a business. You want a CFO who is competent, trustworthy, and experienced—especially in leadership roles.
Skills of a Good CFO:
Leadership skills
A good CFO knows how to lead their controllership, treasury, and financial planning teams to provide accurate data and make confident decisions. This includes managing time, delegating tasks, communicating clearly, valuing accountability, and demonstrating integrity.
Analytical skills
The duties of a CFO require analysing complex reports and data to inform decisions. If you’re not a natural numbers person, a CFO can interpret the financial story behind your numbers. They identify trends (e.g. slipping margins) and help you respond effectively.
Interpersonal skills
CFOs build both internal and external relationships—collaborating with executives, boards, accountants, and lenders. A strong CFO handles these interactions confidently, saving you time and streamlining communication.
Field knowledge
Given the complexity of the role, a CFO should have broad knowledge across financial management, ideally backed by corporate or strategic experience.
Many CFOs bring multi-industry and global experience—applying insights from different sectors to help you make informed, strategic decisions.
Other skills
- Strategic planning
- Financial modelling
- Risk management
- Financial compliance
Education
Most CFOs have a bachelor’s degree in accounting, finance, or business. A master’s degree or certifications like CPA, CFA, MBA, or CMA are highly regarded.
What Is a Virtual CFO?
For small to medium-sized businesses, hiring a CFO isn’t always feasible; that’s where a Virtual CFO (or Outsourced CFO) becomes an ideal solution.
This arrangement provides the same strategic financial oversight as a traditional CFO but does so remotely, flexibly, and cost-effectively.
Virtual CFOs work on a contractual basis, meaning you only pay for what you need—whether that’s a few hours per month or ongoing support.
They’re especially valuable for:
- Startups and growing businesses
- Businesses with limited internal finance resources
- Companies looking to scale profitably
A Virtual CFO is responsible for a range of tasks, including:
- Set up or improve your financial systems
- Provide cash flow forecasts and strategic advice
- Help you understand your margins and cost structures
- Support funding rounds or investor reporting
- Liaise with your accountant or bookkeeper to streamline operations
Hiring a CFO—whether corporate or virtual—is like having a financial co-pilot. They guide you through uncertainty and help you avoid financial mistakes that could cost you in the long run.
CFO vs CEO
Here’s the basic difference between a CFO and a CEO:
- CEO (Chief Executive Officer) – The highest-ranking overall position, responsible for business-wide strategy and operations.
- CFO (Chief Financial Officer) – The highest-ranking financial role, reporting to the CEO and focused specifically on financial health and strategy.
| Aspect | CEO | CFO |
|---|---|---|
| Role | Chief Executive Officer | Chief Financial Officer |
| Focus | Overall business operations and growth | Financial strategy and performance |
| Reports To | Board of Directors | CEO |
| Responsibilities | All departments and strategic direction | Finance, accounting, compliance, forecasting |
| External Role | Represents the business publicly | Deals with investors, lenders, financial institutions |
CFO vs Financial Controller
Here’s the basic difference between a CFO and a Financial Controller:
- CFO (Chief Financial Officer) – The highest-ranking financial leader, responsible for strategy, funding, and the company’s overall financial direction.
- Financial Controller – A senior finance role focused on reporting, compliance, and internal financial management, usually reporting to the CFO.
| Aspect | CFO | Financial Controller |
|---|---|---|
| Role | Chief Financial Officer | Head of Financial Control |
| Focus | Financial strategy, growth, and external relationships | Internal financial reporting, controls, and compliance |
| Reports To | CEO | CFO |
| Responsibilities | Capital structure, risk management, forecasting, investor relations | Budgets, audits, statutory reporting, and accounting team oversight |
| External Role | Works with investors, lenders, and stakeholders | Primarily internal, ensuring financial accuracy and compliance |
CFO vs Accountant
Here’s the basic difference between a CFO and an Accountant:
- CFO (Chief Financial Officer) – A strategic executive who leads the company’s financial direction and decision-making.
- Accountant – A professional focused on recording, managing, and reporting day-to-day financial transactions.
| Aspect | CFO | Accountant |
|---|---|---|
| Role | Chief Financial Officer | Accountant / Bookkeeper |
| Focus | Strategic planning and financial leadership | Transaction processing, reporting, and compliance |
| Reports To | CEO | Financial Controller or CFO |
| Responsibilities | Growth planning, fundraising, financial risk management | Tax filings, payroll, accounts payable/receivable, reconciliations |
| External Role | Investor relations, strategic partnerships | Primarily internal, may liaise with auditors or tax offices |
CFO vs Financial Planner
Here’s the basic difference between a CFO and a Financial Planner:
- CFO (Chief Financial Officer) – A corporate executive managing the finances of a business at a strategic level.
- Financial Planner – A professional who helps individuals manage personal wealth, investments, and retirement plans.
| Aspect | CFO | Financial Planner |
|---|---|---|
| Role | Chief Financial Officer | Personal Finance Advisor |
| Focus | Corporate financial health and growth | Personal wealth management and financial goals |
| Reports To | CEO | Clients (individuals or families) |
| Responsibilities | Corporate strategy, cash flow, investments, risk management | Superannuation, investments, insurance, retirement planning |
| External Role | Represents the company to investors, banks, and regulators | Advises individuals regulated by financial advisory bodies |
When Should You Consider Hiring a CFO?
Many businesses wait too long to bring in financial leadership, often when they’re overwhelmed or missing growth opportunities.
If your business is turning over more than $1 million, experiencing growing pains, or seeking funding or expansion, a CFO could add immediate value. Exit strategies may also be a trigger point.
Even a part-time/temporary (interim CFO or fractional CFO) can help you gain clarity, avoid financial missteps, and build a stronger foundation for future growth.
Does your business need financial support? Give us a call and we’ll discuss how we can help.
CFO on Call provides a range of virtual services which can help your business today ,including:
- Business Valuation Services
- Business Exit Planning
- Financial Consulting & Advisory
- Cash Flow Management
Frequently Asked Questions
What does a CFO actually do?
A CFO manages the financial information, financial reporting, cash flow, and strategic planning of a business. They also ensure regulatory compliance and support long-term success.
Is a CEO higher than a CFO?
Yes. The CFO reports to the CEO and helps support the CEO’s strategic responsibilities.
What is the salary of a CFO in Australia?
CFOs typically earn between $180,000 and $350,000+, depending on industry, company size, and experience level.
See Odgers The 2025 Highest-paid CFOs Revealed article for an interesting take on this.
Is being a CFO stressful?
Yes—it comes with high responsibility. However, many CFOs and vCFOs manage stress through clear scopes and proper delegation.
Can a CFO get sacked/fired?
Yes, especially if they fail to meet performance targets or the business’s financial needs evolve.
What’s the average age of a CFO in Australia?
Most CFOs are in their 40s to 50s with 15–25 years of experience.
Who does a CFO report to?
The CEO, though they may also present reports directly to the board or other senior executives.
Is being a CFO considered a prestigious job?
Absolutely. The CFO is one of the most prestigious finance leaders in a company.
What’s the difference between a CFO and a bookkeeper or accountant?
A bookkeeper records transactions, an accountant manages compliance, and a CFO shapes strategy and provides direction based on financial insights.
What is a Virtual CFO?
A virtual CFO provides all the skills of a CFO but works flexibly. They’re ideal for businesses that need oversight but can’t hire a full-time executive.
