Author: Yuan Guohui
The term chief financial officer is said to be translated by Taiwanese, which is a classic idea of Taiwan compatriots. Literally, the word chief financial officer includes three meanings, first, the chief financial officer of the scope of work, the financial; second, occupation status of Finance Director, general; third, nature of financial director, . In the enterprise, the chief financial officer is to lead the company’s financial work, to perform the functions of the financial supervision of the vice president.
The study of the tax law and the accounting standards must run through the life of a financial officer. On the business knowledge of products, processes, industry, enterprise culture is also a familiar, essential nutrients for financial managers. Western evaluation CFO is a candidate for CEO, which is tantamount to requiring CFO to have a CEO literacy and height. To achieve this realm, willing to learn, eager to learn, good at learning is essential for career.
Many large enterprises finance director of finance is not born, they are even better than most of the mathematical finance director financial do well. This unusual phenomenon tells us that finance is not profound, not a person can do the same financial financial. The one hand shows the position to a certain height, professional skills will become increasingly weakened; on the other hand, the financial restraint frame people will have a better sense of financial. Which shows the essence of management in road and non operation.
Chief financial officer is not only a technical cadre, he is a member of the management team, is a management cadre. In addition to the director of finance as a financial and technical cadres with the professional level, but also has good forward consciousness, overall situation consciousness, global vision and high level of communication. The financial work is only one part of the work, to the chief financial officer of the company’s production, development, sales, procurement has a comprehensive understanding, to control risk should have a unique perspective.
Western corporate CFO and market leaders are often the replacement of CEO. Domestic enterprises CFO can replace CEO? Rarely heard. In the domestic CFO mainly as technical cadres. Do we have a low demand for CFO and look at the chief accountant ordinance. This is the requirement of the general assembly, clearly in the selection of the prime minister. Why can’t the high requirements of CFO CEO, in the system mechanism, process specification of European companies to reduce the requirements of professional managers.
In Europe and the United States, the company’s CFO is a strong candidate to succeed CEO. But in China, whether state-owned or private enterprises, few people will think CFO can do CEO. Is China’s CFO inferior to Europe and the United States CFO, absolutely not. China CFO is not only a financial expert, or half strategists, the comprehensive ability of foreigners than got. The problem in the internal control and internal control procedures, is not perfect or not rigid implementation determines the global CFO can’t handle the Chinese.
CFO said that the need for high EQ, to be able to move between rules and compromise. CFO bad dry, a big reason is the unspoken rules over the rules, the right not to accept constraints. Faced with this situation, the high performance of CFO EQ is to clear their own circumstances to abandon the principle of. It is true that this step, high EQ and how? The real high EQ is that prior choice, they can see the scene of an enterprise and the pattern of CEO, rather than humiliation in making the wrong choice after.
CFO said that if the poor relationship between CFO and CEO, is CEO let CFO embarrassed, CFO can’t let CEO do so, because the opposite situation is not possible. This is a description of the road to make CFO from. Well into the hospital, do not go to court, hold the stand, stand not stand, the plain but rich dialectical color language in the workplace CFO the embarrassing situation of one word. The nature of the work determines the CFO to have high Eq.
If the general manager and financial director of the board of directors must break up, is to replace the chief financial officer, even if the general manager is wrong. Why? Because the company left the general manager will produce vibration, even paralysis; replace the chief financial officer, a much smaller effect on the company. As long as the general manager is not bad enough, the board will accommodate him. So the CFO can only try to avoid conflicts with the general manager, this is perhaps the CFO who think causes the heart tired.
Three, job search
When small and medium enterprises will be appointed chief financial officer? The profit of a large scale, the boss does not want to pay more, but worried about the risk, need expert advice; do not trust the shareholders, the middleman plays the role of notarization; looking for venture capital, need to do a serious loss; the preparation of the new board, the financial needs of the standardized operation; 5. Management loopholes, the need to strengthen internal control; the financial crisis, the chief financial officer of remedial plans.
The financial controller should be extra careful in finding a job. First of all, to understand why recruiters to find financial director, finance director to achieve what purpose; secondly, to understand why former finance director turnover, to see if they fall into the same trap. The new company should be careful to choose, loss making enterprises should give up decisively, personnel change frequency is far away from the wonderful. The space that can be stacked down is small.
Chief financial officer selection work is not easy, the reason is straightforward: if the enterprise has what Shun, why the price for CFO; enterprise is not working, the boss will consider the appointment of chief financial officer. The premise is that the existing financial controller can not do or do not go on, and no one inside the available. Not completely pessimistic, there are indeed some enterprise development bottleneck, the boss really need an assistant in financial management, the opportunity never missed. Please add Equity Research Institute micro signal: guquancn rich stronghold
In many company executives in the youngest is 30 years old as the chief financial officer, this is the most tough There are plenty of people who, vice president of pipe production pipe technology. This gives people an illusion: accounting easy to do. This delusion makes accounting gradually became popular, accounting occupation has become a shortcut to many people chasing fame. In fact, financial supervisor has very strong substitutability, far less than the production status and Technology Engineer stockily.
What is the status of Finance in the enterprise, which is closely related to the development stage and the nature of the enterprise. For example, in multinational enterprises in CFO after the position of CEO, and even the majority of CEO for the market background, a financial background; state-owned enterprises due to not money, the chief accountant in the management team is ranked after the position is very awkward; small and medium-sized enterprises pay more attention to the market and technology, large to fall into the bottleneck after it had considering the importance of financial work.
Want to know how to position the chief financial officer in the enterprise, look at the listed companies on the line, they are more emphasis on financial. The annual report of listed companies will disclose information executives, general manager of the first row of executives, second general deputy general, next is in charge of the business of the deputy chief, then chief financial officer, and finally secretaries. The finance director almost exclusively in all vice general secretaries, behind the front, in the bottom second position in the team.
Subsidiary CFO has two sides, first, on behalf of the group to fulfill its oversight responsibilities, second, to stand in the position to assist the general manager of subsidiary subsidiary of the completion of business objectives. These two dimensions determine the financial director of the subsidiary has the attributes of the double leadership. A lot of the chief financial officer of the company found it difficult to do the job because of the double leadership. If the general manager of a subsidiary is doing something special, the chief financial officer of the subsidiary will be in an awkward position.
Chief accountant, chief financial officer, chief financial officer what is the difference? If the company of its positioning is to assist the general manager in charge of finance executives, these three titles have no real difference. To write an article on the three have different far fetched, no one would say you are wrong. The chief accountant was the introduction of three division name brought the Soviet system, the chief financial officer of U.S. and European companies translation fashionable name, is the financial controller of the ocean Chinese.
If the two shareholders of a company, according to the custom of capital contribution of shareholders sent as general manager, the shareholders invested less and sent to the chief financial officer. This arrangement is a more effective model of right balance. Two if the proportion of capital contribution of shareholders between small shareholders often bargaining power is not enough, then the company shall have the right to send financial director, capital expenditure can only rely on the major shareholder of a pen. If it is not absolute trust, this means without control to avoid investment.
CEO is on the accelerator, CFO is stepping on the brakes, this is the two thinking of the image to express. CEO will have the enterprising spirit, always thinking about money; CFO must have the risk awareness, to think about how to make good use of the money. The thinking of the two will be in discord, uncertainty decision made, money is not sure, but I don’t know. Adventure spirit and risk awareness can be combined, is the best interpretation of the strategic partnership between CEO and CFO.
Help CEO out of the trick to complete the assessment of the CFO is the accounting profession of the refined self-interest. They use professional knowledge to accurately determine the bias of KPI, and then proposed the use of short-term behavior packaging KPI. This type of CFO is often evaluated as high IQ and high EQ, for they are wandering between illegal and violation, good to meet CEO’s mind, good at chasing for their own best interests. When the means of departure from the enterprise value, these are the same as the high malignant tumor.
Enterprises through the initial period into the track, to avoid investment mistakes to catch the fighter. The giant, Changhong, Qinchi, Shuanghui and other well-known enterprises in trouble or even bankruptcy, is caused by excessive throttle. If CFO was a stick, and CEO can therefore turn, the plight of these companies may be able to avoid. But unfortunately, when no risk when presenting CFO as clear as noonday, although the heart is not in favor of the vote, or to CEO.
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