Financial Director(CFO, English - Chief Financial Officer) is one of the top managers of the company, responsible for managing the financial flows of the business, for financial planning and reporting. The profession is suitable for those who are interested in mathematics and economics (see choosing a profession based on interest in school subjects).

Synonyms: financial manager, financial manager. The financial director determines the financial policy of the organization, develops and implements measures to ensure its financial stability. Manages financial management work based on the strategic goals and development prospects of the organization, identifying sources of financing taking into account market conditions. In a typical company management scheme, he holds the position of vice president of finance and reports to the company president or general director. Knows everything about cash flows in the organization and knows how to distribute them with maximum benefit.

Features of the profession

The CFO is a key figure in any business sector. Any enterprise has financial resources at its disposal that need to be managed. They make decisions about allocating funds, obtaining loans, and budget planning (not to be confused with an accountant who only monitors the flow of funds and reports on them to government agencies). cost.

Very often in the literature, the job titles “financial director”, “financial manager” and “financial manager” are used as synonyms. This is explained by the fact that the labor functions of specialists in the field of finance have not yet been regulated at the legislative level. We can talk about a clear distribution of functions between financial workers in relation to foreign companies or foreign representative offices. For example, in foreign companies it is customary that all financial work is managed by the vice president for finance (financial director), to whom the head of the financial department and the chief accountant report. The latter, in turn, supervise financial managers, economists, accountants, analysts and other specialists.

At Russian industrial, commercial and other enterprises there is still no clear understanding of the structure of financial management. Therefore, in a small enterprise, the employee responsible for financial work is arbitrarily (as a rule, by decision of the director of the enterprise) called either financial director or financial manager. The clearest regulation of the functions of financial managers has been adopted in banking and credit institutions, brokerage firms and trust companies.

Pros and cons of the profession

The advantages of the profession include its prestige, respectability, and high wages. But only people with nerves of iron can meet the highest level of responsibility. The company's position in the market largely depends on the actions of the financial director. You have to simultaneously work with securities, draw up a budget, evaluate cash flows, the investment attractiveness of the enterprise, study the market situation, the maneuvers of competitors, and the capabilities of your own company.

Place of work

Industrial enterprises and trading firms, banks, investment, trust and insurance companies, government and commercial organizations of various levels, brokerage firms, stock exchanges.

Important qualities

The ability to analyze a large amount of information, the ability to soberly assess a situation, the ability to make decisions, good memory, high concentration, patience, communication skills, the ability to convince people that you are right.

Additional requirements: The financial director must know financial management, legislation, economics, domestic and international securities markets, financial and economic analysis. It is also necessary to understand the accounting and statistical reporting of the enterprise, financial information published in the press (including foreign ones), and analyze the financial results of the enterprise. A financial manager is an educated and talented person in many ways.

Training to become a financial director

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Financial managers are trained at economic faculties in the specialty: “Finance and Credit”, “Economics and Management”, “Accounting and Audit”. Industry-specific universities prepare financial managers to work specifically in their industry.

Remuneration

Salary as of July 25, 2019

Russia 45000—150000 ₽

Moscow 50000—150000 ₽

The remuneration of financial directors is directly proportional to their responsibility and experience. Applicants must demonstrate excellent knowledge of financial management and have strategic management skills. Applicants with more than 5 years of experience in the position of financial director of a holding company, a large enterprise or a company with a branch network can count on the maximum income. Employers often require candidates to have an ACCA, CFA, CPA, or MBA degree. Applicants who are fluent in English and have excellent reporting transformation skills in accordance with international standards have a competitive advantage in employment.

Career steps and prospects

Graduates of the faculties of economics and finance who have work experience as a chief accountant or more than 2 years of experience in managing a financial service can apply for the post of financial director. The main requirements of the vacancies relate to the high competence of candidates in matters of accounting and tax accounting, in the field of planning, budgeting and analysis of economic and financial activities.

Portrait of a financial director

According to labor market research, the majority of applicants for the position of financial director are specialists aged 30 to 40 years (49%). There are almost equal numbers of women and men among candidates for this post: 46% versus 54%. All financial directors have higher education. Every third person is fluent in English.

Almost every person in one way or another connected with the commercial environment will say that one of the most influential people in any company is the financial director, whose responsibilities cover almost everything related to the organization’s income and expenses. It is for this reason that most often a person in such a position is the second most influential person. But as soon as it comes to what functions it performs, many become confused.

Who is this?

Today we can confidently say that, if we do not take into account the CEO, then the most influential person in any company is the CFO. This person's responsibilities include strategic planning, careful cost control, management of various information systems and, of course, reporting. Among other things, he is directly involved in tax planning, including such work as tax optimization and establishing a specialized internal control system in the company.

In order for the financial control and accounting system to work properly, personnel issues are also taken over by the financial director. His responsibilities include not only identifying key employees, but also, if necessary, drawing up a plan for their replacement. This is done with the aim that if any person decides to resign from a certain position, it will not ultimately turn into a disaster for the enterprise. In addition, he also performs a public function, that is, he gives interviews to the media, speaks on behalf of the company, etc.

As you can see, considering who the financial director is, the responsibilities of this position and other nuances, you can understand that in fact he deals not only with those issues that are directly related to the company’s income. They also resolve various issues regarding personnel selection, PR campaigns and many other elements.

How is the situation?

Due to the fact that many do not even know the job responsibilities of the director, it often happens that during the personnel selection process people simply do not understand each other. The CEO does not know exactly what tasks the CFO must perform, as well as what powers and responsibilities he must have in order for him to be able to perform these tasks efficiently. At the same time, a person applying for a job does not understand what the job responsibilities of a financial director are established in this company, not to mention whether he will be able to fulfill the tasks assigned to him.

If a specialized HR director is recruiting, he may also not know how to identify a specialist, as a result of which both the HR department and the general director begin to pay careful attention to a variety of formal characteristics, such as work experience, education, knowledge of certain professional concepts and much more. Of course, it can hardly be said that this approach is optimal.

How to identify a professional?

There is a more optimal approach to solving this problem. First of all, you must understand that you are looking for a truly professional specialist who himself understands, for example, the responsibilities of the financial director of an enterprise, which he needs to complete the tasks assigned to him. In other words, you should look for a person who not only has knowledge, but also knows how to use such knowledge to achieve specific results.

Next, you must decide whether your priority criterion for choosing a specialist will be whether the applicant owns certain tools, if they may not even be the responsibility of the financial director of the enterprise. In fact, this is not so important, that is, of course, he must have certain skills, but for the employer this is not the main thing. The main thing is to achieve specific goals and results. You cannot hire a person just because, for example, he is fluent in developing a budget, since you must also make sure that he knows perfectly well why he is doing certain things, and what exactly he has to do. it can be achieved in the end.

Features and Tools

You should immediately remember the difference between functions and tools:

• Functions are the main responsibilities of a CFO. Each such function has a constant goal or even several, to achieve which a certain set of actions is formed. Each action, in turn, has its own result, the achievability of which can already be checked in the process of work.
• The tool is the means by which the responsibilities of the CFO will be ensured. An LLC and a manufacturing enterprise will provide the specialist with different tools to solve the problem, but in any case, this concept is less ambitious. The tools include lending, accounting, ERP, KPI, balanced scorecard, cash flow management and many other elements.

Who is the specialist here?

It is important for the employer that the candidate perfectly understands his responsibilities, perhaps the responsibilities of an assistant financial director and some other nuances, but the most important thing is that he understands the goals that are set for him. Indeed, in the process of development of any company, the exact definition of goals may change, because a small organization and an international corporation simply cannot have the same goals. It is for this reason that in order for you to understand the responsibilities of the CFO, a sample of which you will need to provide to candidates, you will need to identify those functions that will not change much as your company develops (regardless of what you are currently moment you use the tools and what the company’s goals are).

Main functions

For many people, the actual activities of a CFO are virtually unclear. His responsibilities and the tools available to him to perform assigned tasks are unknown to many, but if you have not been able to find for yourself the optimal set of functions of a person for this position, you can establish something like the following list:

• Formation of a corporate strategy, as well as planning actions in the financial sector that could ensure maximum growth in the value of the company.
• Control over all issues regarding budget and management.
• Full control over finances, including cash flows, accounts payable and receivable, ensuring the fulfillment of any obligations and much more.
• Providing all the necessary information for the work of company managers and specialists.

Meeting business needs for money

Money is the driving force of any business, because if there are not enough funds to make any current payments, then eventually the work process will simply stop, as the supply of raw materials, services and supplies will stop, and workers will stop working. At the same time, there is no difference in what profit this or that enterprise has, because the most important thing is whether it currently has the funds to pay the bills. It is for this reason that when considering what the responsibilities of a CFO are, the first thing to consider is ensuring that the company has enough funds to pay the company's bills.

In order to achieve this goal, there are a huge number of tools, including such as:

• attracting all kinds of borrowed funds;
• forecasting possible cash flows;
• attracting investments from various sources and much more.

As mentioned above, the financial director can use any tools, but the most important thing is the result, that is, the company must always have money in order for it to pay its bills. That is, he can even transfer some functions to the job responsibilities of the deputy financial director if he considers that this is necessary to complete the task.

Planning and coordination of company activities

This function can in many ways be called providing for a number of others, since without it it is simply impossible to implement most of them.

In order for money to be constantly present in the business, the functional responsibilities of the financial director include the mandatory preparation of a forecast plan, which contains complete information regarding how much money the company is going to receive over a certain period of time, and how much and when it will need to spend to meet its needs . At the same time, he should not and cannot invent this; he must have a production plan from the relevant director, which will contain information about what exactly the company will produce and in what quantity. At the same time, the production director cannot decide in what quantity and what exactly he can produce until the sales director provides him with an accurate forecast of what and in what quantity he is going to sell. Thus, this entire information chain ultimately forms the planning and coordination of the company's activities.

It turns out that the financial director does not have the opportunity to ensure the availability of funds until there is an agreed upon set of a number of plans, on the basis of which the final action plan will ultimately be built. At the same time, since a number of people will have to plan their own activities, then someone must be entrusted with coordinating all these actions, and this is precisely the responsibility of the company’s financial director.

Why is the CFO doing these things?

First of all, in the work of the financial director, all these plans represent the initial information on the basis of which he will make his own cash flow forecasts, as well as formulate financial plans. In other words, he is responsible for the final stage of all planning, since he determines the final product and, due to this, must coordinate the actions of all other departments.

At the same time, you need to understand the fact that all these plans must be carefully coordinated with each other, and at the same time they are drawn up in different physical quantities. Moreover, the only indicator by which they all unite is money.

Ensuring company efficiency

Profit maximization is not the primary goal, and many companies often get sidetracked when they have a CFO working in this direction. The functions and responsibilities of this specialist should be to ensure that the organization operates as efficiently as possible, and as a result, profits will increase. That being said, there are several important subtleties that need to be taken into account.

Acting correctly means moving towards the main goal that the company sets for itself. If the main goal is making money, then the right thing to do is to engage in the production of such services and goods that are currently in demand by society. Defining this task is something that the founders, as well as the top management of the company, should do. Moreover, for some, this goal is to increase the founder’s wealth, while for others it is charity or something else.

At the same time, you need to understand that you need to move towards this goal using a method that is the most effective, and this implies not only an increase in labor productivity in any production, but also the efficiency of each member of the staff, be it the deputy financial director, responsibilities which may consist only of assisting his immediate supervisor, or the general director, who is entrusted with the main responsibility for the work of the organization.

It is also worth paying attention to the fact that in the process of development of the company it will constantly change, as well as expand the object of management. Initially, this concerns exclusively the management of resources, including material ones, but as soon as the organization begins to develop and enter a constant operating pace, changes begin to appear in the structure, work rules, the composition of personnel changes, etc. In other words, the organization itself also becomes an object of management.

Why should the CFO be in charge of all this?

The responsibilities of the manager are assigned to the financial director for the reason that the main visible sign that determines the efficiency, as well as the status of the company, is economic success. In other words, the main sign of a company's success is its profit, as well as the cash flows managed by the financial director. It is this person who sets the rules for determining what exactly is considered “effective action” within a particular organization. In this regard, the financial director is the person who coordinates the entire process of how a simple company will turn into an effective one.

Ensuring economic security

Any company has the risk of ceasing to exist at one point, and the risk of bankruptcy is first determined by whether the organization can pay its debts on time. However, over time and the development of the company, even more risks arise, including political, market, departure of key individuals, etc.

On the one hand, a large corporation has more opportunities to suffer from all sorts of unfavorable events, while small entrepreneurs are less exposed to this risk (they, so to speak, are less noticeable and have less time to accumulate ill-wishers and competitors). But at the same time, a large corporation has more resources, as a result of which it tries to control such risks, as well as carefully insure against them.

The job responsibilities of the CFO do not include direct risk management; they issue orders to other members of the company. For example, if one of the important risks at the moment is the possible loss of image, then in this case the financial director will not have to strengthen it on his own, but will have to give orders to the person involved in the PR campaign. If we are talking about the risk of losing a key employee, then in this case the order is given to the personnel department, while the financial director monitors how these tasks will be performed.

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Main functions of a CFO: What does a CFO do in a company?

One of the most controversial issues in the professional business environment is the functions of the financial director. According to some executives, the CFO should be a financial controller, analyst, consultant and risk manager all rolled into one. Others believe that a finder is no more useful than a good chief accountant. In addition, this position is quite young and the set of functions it includes continues to grow and change due to the rapid development of IT technologies. Let's try to figure out whether the modern list of finder's responsibilities includes only items related to finance, or is it much longer and more varied?

What are the differences between the functions of a financial director and a chief accountant?

The profession of financial director arose during the transition to market relations, when the management of financial flows in companies became significantly more complicated. At first, it was almost a complete analogue of the position of chief accountant. The finder's responsibilities included performing traditional accounting tasks: monitoring and accounting for funds, providing documentation to tax authorities, etc. Over time, the demands on CFOs have increased significantly. Now his share is predominantly strategic and management functions, and financial calculations and preparation of documentation are left to the care of the accounting service.

In practice, the functions of the finder and the chief accountant are often duplicated, and the approach to their implementation is different, which often causes conflicts and misunderstandings on both sides. For example, it is common to enter the same data twice into different accounting information systems - for accounting and management purposes. As a result, the working time costs of accounting and financial department employees unreasonably increase.

Many companies get out of the situation by combining these 2 positions. But often the chief accountant lacks special professional training and skills in solving strategic financial management problems, and the finder lacks sufficiently deep knowledge in the field of accounting.

What are the main functions assigned to the financial director?

Management expects a lot from the financial director and needs not only his professional knowledge and skills. Business owners want the CFO to become a reliable partner and initiator of change in the company.

To determine the key functions of the financial director, it is necessary to identify the company’s development goals for the longest possible period. Since the CFO belongs to the management team and can influence a lot in the company, his tasks are global: effective resource management, optimization of business processes and maintaining the financial stability of the company.

If you move away from official formulations and special terms, you can create a list of priority functions of the financial director as close as possible to practical activities.

The functionality of the financial director increasingly goes beyond accounting and reporting. The range of his responsibilities is expanding due to his involvement in the tasks of the legal service, HR projects, marketing and IT. Now a CFO is a strategist whose main task is to increase the value of the company, increase its profits and investment attractiveness. Without it, not a single important decision is made in the company.

What should a financial director do in a company?

Forecasting, planning and control are at the core of any CFO activity in a company. He collects data by department and draws up a forecast plan, in accordance with which all further financial and economic activities of the enterprise are coordinated.

Running a business is impossible without money. And the finder is obliged to ensure the receipt of funds in the required quantity to make all current payments. In this he is helped by forecasting cash flows, attracting additional sources of financing and setting up a risk management system.

Management, shareholders, investors and other users are interested in reliable financial information, as the final indicator of the enterprise’s performance. Providing the reporting necessary for making management decisions also falls on the shoulders of the finder. He must also establish an effective system for maintaining economic security. To do this, it is necessary to identify the company’s weaknesses and develop ways to minimize risks across departments.

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Distinguishing the concepts of “functions” and “tools” of the financial director

Is investment appraisal, for example, a finder's function? No, this is just a way to achieve one specific goal, or in other words - a tool. Mastery of financial instruments is secondary compared to the ability to effectively perform one’s functions. If a specialist owns many financial instruments, but does not understand the global goals of the company, then it will be difficult for him to achieve success.

Differences in the concepts of “function” and “tool”

What core competencies are required for a CFO?

To successfully cope with his responsibilities, a CFO must have a set of professional competencies in 2 areas: financial and managerial. They are closely interconnected, so for professional growth you will have to constantly improve and develop new competencies in both areas.

With the advent of new functions, the set of necessary competencies for a financial director is regularly updated. A modern finder first of all needs to focus on developing strategic thinking, studying IFRS and understanding the principles of building a risk management system.

What is the essence of the work of a financial director?

There are many stories of brilliant CFOs who make a tangible contribution to the development of the company. They managed to gather around them a team of competent specialists who cope with the tasks. Such finders act as irreplaceable members of the strategic planning group, have their own independent position and effectively manage internal control and risk management systems at the enterprise. At the same time, they devote enough time to communicating with management, colleagues, and external stakeholders who also influence the life of the company.

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Functions and competencies of the financial director: forecasts for the future

In order to further achieve career heights and achieve prosperity for his company, an ambitious financial director needs to:

• create the right team of financial specialists capable of generating ideas and mastering modern technologies
• delegate your planning and control responsibilities to company managers
• identify and eliminate low-productivity processes
• take control of the performance evaluation system
• begin developing and implementing a concept for improving the work of the financial department

Constant transformations of the economic environment require CFOs to become even more professionally multifunctional. To remain effective in the current environment, he must change the role of a tactician to a strategist who will realize the potential of his company and find the path to long-term economic benefit.

At the same time, the financial director does not have to manage all processes in the company. It is better to delegate current and operational tasks to subordinates or outsource them. This will free up time for the implementation of its main function - building and implementing an effective financial strategy.

In a commercial environment, the position of CFO is clearly considered very influential, since it determines the financial stability of the company and its market position. But there is no unity regarding what exactly falls within its competence.

Let's consider the main provisions of a typical job description for a financial director and explore the nuances of its functionality.

CFO – who is he?

The financial director belongs to the management team; he manages the financial flows of the enterprise. It is important to clearly define its functions, since other positions, for example, chief accountant, executive director, are directly related to finance - the “circulatory system” of any organization. Many companies even practice combining these positions or job functions.

Unlike other positions that deal with a firm's cash flow, the CFO coordinates it by sending management information to other managers. His main goal is to constantly ensure that the company’s profits grow and implement appropriate policies. To do this, the financial director must master many commercial instruments and act in the present moment, taking into account the experience of the past and the potential of the future.

Functions of the financial director

When drawing up a job description for a financial director, management often does not clearly separate his tasks from the tools with which he must achieve results. For example, budget control, financial accounting, credit management, etc. are often included in the functions of a financial director. The functions of a financial director are what he must accomplish through the use of certain financial instruments to achieve the above stated goal.

There are 5 groups of main functions of the financial director:

1. Providing financial support for business activities. Cash is the driving and nourishing force of any business. When they are not enough to make payments necessary for the activity, it is impossible to conduct business: suppliers will not provide raw materials, workers will not work without wages, there is nothing to repair equipment, etc. Even profit in such a situation is secondary; it is important that the enterprise has the opportunity to ensure your current activities at any time. To achieve this goal, the financial director can use the following tools:
   • forecasting financial flows;
   • credit management;
   • attracting investors, etc.
2. Designing and ensuring relationships between governing structures. Without effectively performing this function, achieving others will be very difficult. It is clear that no one can ensure profit for an enterprise alone. And since the team acts within the framework of one goal, this activity must be coordinated. For these purposes, structural divisions have direct superiors, who must be “matched” with each other in the name of profit by the financial director.
3. Concern for the efficiency of the company. It would be wrong to assume that the CFO should be concerned about increasing profits. This indicator depends on the efficiency of the enterprise, and it must be increased by all means. This refers to the total efficiency in all areas of the company’s activities:
   • market research;
   • carrying out marketing policy;
   • carrying out production;
   • accounting and tax reporting;
   • sales of products, etc.

REFERENCE! Roughly speaking, the financial director increases the profit of the enterprise by ensuring that all employees of the enterprise work well, that is, with maximum efficiency.

4. Transferring the necessary information to the right people. For effective management policy, you need to have an array of up-to-date data. Since all planning at an enterprise is ultimately aimed at increasing profits, it is financial information that coordinates the results of using all other information flows - marketing, production, accounting, etc.
5. Ensuring the financial security of the organization. Any business activity has financial risks. The economic “health” of a company is based on its ability to meet all current financial obligations (see function 1). With the development of the company, additional risks are added related to the market situation, personnel problems, etc. The more developed the organization, the greater the number of risks it can threaten, but also the more resources it has to overcome them. The financial director is not involved in solving these problems, but has complete information and can assign appropriate tasks to competent persons and monitor execution.

CFO Tools

These are the processes that, as a result of their application, can ensure the fulfillment of the 5 designated functions. They are the ones most often written in job descriptions as duties.

1. Cash flow management for the company:
   • cost control;
   • planning the use of resources;
   • optimization of tax policy.
2. Strategic management of financial activities: the entire array of financial instruments is used for this.
3. Economic security:
   • financial risk analysis;
   • setting goals to reduce them;
   • control of the activities of authorized persons.
4. Financial and economic analysis of contracts concluded by the company.
5. Preparation and control of the status of financial statements.
6. Management of financial departments of the organization.
7. Interaction with HR department.
8. Representation of the company before contractors.
9. Public activity, including in the media.

Where do financial directors work?

All commercial enterprises, especially large ones, where coordination and planning of departments responsible for cash flows are necessary, are unlikely to be able to do without the position of a financial director. Most often this specialist is needed:

• in banking organizations;
• at manufacturing enterprises;
• on stock exchanges;
• in insurance, trust, investment companies;
• in various commercial organizations;
• in certain government agencies, etc.

If the organization did not previously have such a specialist, he is needed if:

• the manager is not fully aware of the direction of the financial activities of his enterprise (the business is “staggering”);
• the owner prefers to see the process of business activity and influence it, and not just record the results in reports;
• the activities undertaken to increase profits for a long time do not show profitability;
• additional control is needed from the economic planning department, accounting department, IT department and others directly related to finance;
• There are often late payments and debts;
• the profit received from the documents and funds in the account does not match, etc.

What is required from a potential CFO

As we see, small organizations and small companies cannot always afford to have a financial director on staff; sometimes an accountant or the general director himself can handle his functions. But a growing and large company needs this specialist, so the requirements for him are quite high, as is the proposed payment for his work.

To qualify for the position of CFO in any organization, a candidate must meet the primary minimum requirements:

• higher economic education in the specialty “Finance and Credit”, “Enterprise Economics”, “Accounting and Audit”, “Financial Management” or “Banking”;
• Advanced computer skills, knowledge of basic programs, especially 1C;
• knowledge in the field of tax, accounting and auditing;
• knowledge of basic legislative and regulatory documentation;
• oratorical and diplomatic skills;
• skills in preparing reports, presentations, public speaking;
• at least three years of work experience in a related specialty.

The responsibilities of the manager responsible for the company’s finances include solving a fairly wide range of problems. Strategic financial management should facilitate the effective use of funds in accordance with the strategic goals and current needs of the enterprise. The specialist must also develop ways to improve the efficiency of using financial resources. The main tasks include:

• ensuring the formation of a volume of funds sufficient to cover current needs;
• optimization of cash flow;
• ensuring efficient use of invested capital,
• improvement of the enterprise's settlement policy,
• maximizing profit with an acceptable level of risk,
• ensuring the economic stability of the company.

Figure 1. Management reporting using the example of the software product “WA: Financier”.

Tools and tools for automating the functions of the CFO

The responsibilities of the financial director of an enterprise involve creating all the necessary conditions at the enterprise for the implementation of the company's investment and dividend policy, effective management of sources of funds, income and expenses. In addition, he must provide senior management with prompt and reliable information reflecting the company's performance.

Automation tools make it possible to increase the efficiency of the financial director. A set of solutions from WiseAdvice helps improve the quality of the functions assigned to the head of economic services of enterprises in Moscow and other regions of Russia. Depending on the complexity of the tasks, the financial director can use various delivery options for “WA: FINANCEIST”.

1. "WA: FINANCEIST: Cash Management" allows you to automate treasury management.
2. "WA: FINANCEIST: Budgeting" promotes the implementation of budget models of any level of complexity.
3. “WA: FINANCEIST: Management Accounting/IFRS” is an excellent tool for organizing a management accounting system and generating reporting in accordance with IFRS standards.

All solution options offered by the Financier system allow you to solve a wide range of problems and efficiently perform the direct responsibilities of an economic manager, which depend on the company’s accounting policy. The list may include the following functional responsibilities of the financial director:

• organization of cash flow management;
• regulation of relationships between economic entities;
• ensuring efficient use of resources;
• development of measures to increase profits;
• budget process management;
• ensuring the capitalization of the company;
• participation in the formation and improvement of the economic policy of a commercial enterprise;
• analysis and optimal selection of sources of financing in relation to the conditions and specifics of the company’s activities;
• analysis of the efficiency of invested capital and search for new investment directions;
• general analysis of the company’s economic activities and development of effective methods that help optimize turnover and cash flows, increase profitability and other aspects aimed at improving performance indicators;
• organization of financial accounting at the enterprise, monitoring the compliance of actual indicators with planned ones and analysis of deviations, reporting, providing objective and reliable information to top-level managers, coordinating information exchange between all departments;
• general management of personnel of subordinate services.

Figure 2. Analysis of cash flow in the “WA: Financier” system.

The system from WiseAdvice has been successfully implemented and used at many enterprises in Moscow and other large metropolitan areas of Russia.

The job description of the financial director must include an expanded list of functional responsibilities and powers of the financial director of the enterprise. The head of economic structures manages the company's assets, and therefore belongs to the category of personnel with an increased area of ​​responsibility. A well-written instruction will help the financial director to correctly perform his duties in accordance with the company’s requirements. It may contain the following sections:

Figure 3. Example of a Treasury Regulation.

1. General provisions.
This section may indicate requirements for certain types of knowledge and categories of education that the financial director must have, indicate his status as a manager, describe who can appoint him to the position, the subordination structure and other parameters. Special requirements may also apply. For example, for the applicant to work for a certain time as a deputy in a financial company.

2. Job responsibilities of the financial director.
This section of the instructions is of particular importance, therefore it should be presented as completely as possible and reflect all the functional tasks of the financial director.

3. Criteria for assessing the quality of performance of official duties.
Describes the qualitative indicators of the criteria on the basis of which it is possible to monitor and determine the success of the performance of the official functions of the financial director.

4. Rights of a specialist.
The responsibilities of the enterprise to the specialist are described, such as payment of wages, payment of travel expenses, organization of the workplace, benefits, provision of information and technical means, creation of safe working conditions, etc.

5. Manager's rights.

This paragraph of the instructions defines the powers of the financial director as a manager and the list of responsibilities within his competence. The provisions describe the specialist’s right to:

• representing the company's interests in third parties,
• interaction with heads of other structural divisions,
• the ability to give orders to personnel in subordinate structures (in some cases, the financial director can control the activities of the chief accountant),
• participate in the preparation of draft orders,
• make proposals for the appointment, rotation, dismissal of personnel;
• other rights.

6. Responsibility of the specialist.
A clause covering the employee’s responsibility for improper performance of duties, for offenses, causing material damage and other actions contrary to the interests of the company.

To understand how to become a financial director, it is logical to familiarize yourself with the job description of a specialist in this profile. Below is an example of a job description developed for a CFO. It can only be a sample, since in the conditions of a particular enterprise all points must be adapted to the specifics of the company’s activities and its development strategy.

Job description and functions of the financial director

I APPROVED

General manager

1. General provisions

1. The instructions describe the job duties, rights and responsibilities of the financial director.

1.1. The subject acting as financial director belongs to the category of managers.

1.2. A person who meets the following criteria is appointed to the position:

Higher financial or economic education;

Professional work experience of at least 5 years.

1.3. The financial director must know:

Legislative acts in the field of financial and economic activities of the enterprise;

State of markets and prospects for their development;

Principles of organizing the activities of an enterprise;

Procedure for drawing up budgets;

System of financial instruments;

Principles of capital management;

Methods for assessing assets, profitability, risks;

The procedure for lending and attracting investments for the company,

Resource allocation methodologies;

Rules for controlling cash flows, income and expenses;

Forms of settlements between counterparties,

Tax legislation requirements,

Accounting,

Financial Accounting Standards,

Reporting forms.

1.4 The financial director is appointed to the position by Order of the General Director.

1.3. Reports directly to the General Director.

1.4. During the absence of the financial director, functional responsibilities are performed by a person appointed in accordance with the procedure established by the enterprise.

1.6. Managers, analysts, and economists from the relevant structural divisions report to the financial director.

2. Job responsibilities of the financial director

2.1. Organizing the management of company resources, redistributing cash flows in order to improve the efficiency of the enterprise, optimizing costs, maximizing profits, searching and identifying sources of financing.

2.2. Conducting negotiations, accompanied by the necessary paperwork, with credit and investment institutions and other external organizations.

2.3. Coordinating the work of structural divisions in order to conduct an economic analysis and determine the current state of the company and prospects for its development.

2.4. Ensuring the development of the company's accounting policies, identifying effective methodologies, introducing automation tools.

2.5. Enterprise asset management.

2.6. Organization of analysis of all types of enterprise expenses for the purpose of further cost optimization.

2.7. Participation in the development of business plans together with other company managers.

2.8. Organization of the budget planning process.

2.6. Monitoring the implementation of financial plans, adjusting the budget to increase profitability,

2.7. Development of measures that reduce the influence of factors leading to higher prices for products.

2.8. Controlling the expenditure of borrowed funds and the efficiency of capital investments.

2.9. Analysis of the company's main performance indicators that influence the results.

2.10. Control of cash flows, ensuring timely payments and wages.

2.11. Development of proposals aimed at ensuring the solvency and liquidity of the company.

2.12. Organization of document flow at the enterprise in the field of financial and accounting.

2.13. Control over the formation of objective reporting documentation.

3. Rights of the financial director

The financial director has the right:

3.1. Require senior management to provide the conditions necessary for the quality performance of official duties.

3.2. Make proposals aimed at improving the organization of work at the enterprise.

3.3. Participate in the preparation of projects, plans, budgets, contracts, instructions and other documents related to the economic aspects of the company's activities.

3.4. Sign financial documents.

3.5. Give instructions to subordinates in order to organize proper work.

3.6. Interact with the heads of all structural divisions on issues related to the financial and economic activities of the company.

3.7. Make proposals for improving document flow within the limits of official competence.

3.8. Identify bottlenecks in the activities of the enterprise, propose methods and ways to eliminate them.

3.9. Receive in a timely manner the documents necessary for the quality performance of the duties of the financial director.

3.10. Submit for consideration by management proposals on the promotion or disciplinary action of employees, appointment, rotation, dismissal, and prepare the appropriate order.

3.11. Participate in the development of job descriptions for subordinate employees.

4. Responsibility of the CFO

The financial director is responsible for:

4.1. For disclosure of trade secrets and transfer of information to third parties, if such actions resulted in material damage to the enterprise, and also contributed to the deterioration of the company’s image in the business community and among consumers.

4.2. For failure to perform or improper performance of official duties, inaction when identifying an irresponsible attitude towards official functions on the part of subordinates.

4.3. For causing material damage to the company within the framework of current legislation.

4.4. For violation of the laws of the Russian Federation during the performance of official duties.

4.5. For intentionally causing harm to the company in the form of distortion of objective information, concealment of income, uncoordinated withdrawal of funds from the company’s accounts.

4.6. For non-compliance with the rules:

Labor protection;

Labor regulations and discipline;

Industrial hygiene and sanitation;

Fire safety;

Industrial safety precautions.

AGREED:

Head of the Legal Department.