What is a CFO—and What Do They Actually Do?

Part 1 of the "CFO Basics" Series

If you’ve ever wondered what a CFO is, you’re not alone. Many business owners are so focused on running day-to-day operations that the idea of having a “Chief Financial Officer” sounds like something only Fortune 500 companies need—or can afford. But here’s the truth: the right CFO can be a game-changer for companies of all sizes.

In this first post of our CFO Basics series, we’ll break it down from the very beginning: what "CFO" stands for, what a CFO actually does, and why understanding this role can help you make better decisions for your business.

What Does “CFO” Stand For?

“CFO” stands for Chief Financial Officer. It’s one of the most senior leadership roles in a company, typically sitting alongside the CEO (Chief Executive Officer) and COO (Chief Operating Officer).

Think of the CFO as the person steering the ship when it comes to anything involving money in your business: past performance, current operations, and future financial strategy.

So… What Does a CFO Do?

At its core, a CFO helps you understand your money so you can run your business with clarity, confidence, and control.

Here are the core responsibilities a CFO typically handles:

1. Financial Strategy

A CFO doesn’t just look at the numbers—they interpret them. They help you set financial goals and develop a roadmap to get there. Whether it’s scaling your business, managing cash flow, or preparing for investment, your CFO is your strategic advisor.

2. Cash Flow and Forecasting

A CFO ensures your business has enough cash to operate—not just today, but next quarter and next year. They build forecasts so you can plan ahead and avoid surprises.

3. Reporting and Analysis

Ever wonder if you’re really making a profit? A CFO turns raw financial data into clear reports that help you understand what’s working, what’s not, and where to focus.

4. Risk Management

A good CFO helps identify financial risks and puts systems in place to protect your business—whether from overspending, fraud, or unexpected downturns.

Do I Need a CFO If I Already Have a Bookkeeper or Accountant?

This is a common question—and a really important one.

• A bookkeeper tracks daily transactions and keeps your records organized.

• An accountant ensures compliance with tax laws and helps you file returns.

• A CFO takes all that information and uses it to help you make smarter business decisions.

If your business is growing—or you want it to grow—it might be time to go beyond tracking numbers and start using them strategically.

Why This Matters for Small and Midsize Businesses

CFO-level support isn’t just for big corporations anymore. CFOadvisory services (like what we offer at You Need A CFO) make it possible for smaller companies to access high-level financial expertise without the full-time cost.

Whether you’re looking to boost profits, manage complexity, or just sleep better at night knowing your finances are under control, understanding the value of a CFO is a powerful first step.

What’s Next in This Series?

In Part 2, we’ll explore when a business typically needs a CFO and what signs to look for that indicate you might be ready.

And in Part 3, we’ll cover how a CFO drives real value, with examples of the impact a CFO can have across different industries and business stages.

Want to learn more about how a CFO could support your business?

Let’s talk—schedule a free consultation and we’ll help you figure out what makes sense for your stage and goals.