The CFO is responsible for the fiscal management of the company’s operation and directly reports to the director or the CEO. Most of these professionals have an MBA in Finance or are from accounting background, and assist in the budgeting, management, and acquiring of funds for the company. It is a job that involves great responsibility and the salary reflects that; it is a high-paying career, with a starting pay of around USD 85,000 or more. Financial management is the main task of these professionals, and they play an important role in helping the company achieve its mission. In view of the recent accounting scandals that hit the US economy, it is preferable that the chief financial officer be a certified public accountant.
As the name suggests, he is in charge of the finances of the company; these professionals handle financial planning and manage revenue and expenses of the company. They allocate budgets for all the departments within the company and also take care of the salaries of the staff. They also have to implement and develop procedures for correctly reporting the financial transaction of the organization to external auditors. Furthermore, they have to implement policies that help increase the profit margins and the tangible assets of the company.
The CFO has to oversee the payroll and the employee strength and maintain the financial records of income and expenditure. One of the most important duties of these professionals is financial forecasting and consolidating the company’s financial performance. Compliance with state and federal procedures is also one thing that comes under the job description. Ensuring that all A-133 audit formalities are done, in accordance with the Office of Management and Budget guidelines, and 403(b) compliance issues are met is their responsibilities.
This aspect is directly related to the strength and market position of the organization that they work for. These high-ranking executives are in the upper echelons of management and are paid handsome salaries. The average pay scale of CFOs does not tell the whole story behind how much they earn, as they get more in commissions, as well as a share in the profit on business deals and mergers.
Some industry-specific data about the same indicate that the Information and Technology sectors are the paymasters. The salary of those working in the IT industry can range from USD 92,000 to USD 146,000. Number of years of experience plays the defining factor when it comes to their salaries, more than the educational qualification. Construction sector also pays good salaries to these professionals, which typically range between USD 86,000 and USD 151,000. In fact, those working with a construction company also earn a lot of incentives and bonuses on acquisitions and new deals.
Financial services companies also need CFOs who specialize in forecasting, planning, and budgeting of organizations. The salary in a financial services company can range from USD 90,000 to USD 145,000. One of the emerging sectors for competitive salaries is the health care industry; these can range from USD 86,000 to USD 139,000. To go with their hefty bonuses, CFOs also enjoy a wide range of medical benefits like dental and eye care.
The salary and bonus structure is enviable, but it’s not only about the color green; the job is of a great responsibility. Handling and managing company’s financial resources are vital tasks; careful planning and research, along with a watchful eye on the economy are needed to successfully perform their duties.