When talking about the position of financial director, it is important to understand what he should be able to do. One of his important skills is the ability to predict changes in the state of affairs. To do this, he conducts risk analysis and eliminates or minimizes them. That is, he decides in advance what to do if the situation does not develop in the best way.
Let's say a company provides home repair services, and there is a possibility that in the near future the prices for building materials will double or even more. The financial director realizes that such changes in the market will lead to an increase in the cost of services for clients, which will negatively affect revenue. It is necessary to prepare an optimal response algorithm in advance, so the financial director negotiates with suppliers on preferential terms and a payment deferral. Then the company has the opportunity to gradually raise prices for its services, leveling out the sharp jump in the cost of materials.
In addition, the company's CFO evaluates ideas in terms of their investment attractiveness. He calculates what expenses the project will entail, when serious additional car owner database costs will be required, when the company will be able to make a profit from the project, and when the latter will become self-sufficient. This specialist creates such models for any purpose. For example, if the company is going to start a project, open a branch, or transfer its activities to a new area.
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Sample job description for a financial director
Who does the CFO manage and report to?
The CFO is one of the company's top managers. He is responsible for making strategic decisions, and his immediate supervisor is the CEO. However, the position of this employee in the job hierarchy depends on the organizational structure and internal policy of the company.
Sometimes the CFO is on the same level as the other managers, in other cases he manages the heads of departments. If all the department heads are arranged in a linear fashion, the hierarchy (management structure) in the company looks like this:
Linear management structure
It is also possible to use a mixed principle of subordination:
Mixed principle of subordination
There may be different business relationship schemes between the financial director and the chief accountant. Sometimes the accounting department is part of the financial and economic department, then the financial director is the main manager in the entire division. Or these specialists manage different sectors and are directly subordinate to the general director.
The third format assumes that the chief accountant reports to the executive director. In accordance with this, communication and management relationships are established between these specialists.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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