Difference Between CEO and CFO

The CEO has the vision for the business and some perspective on what the company will be at some point down the road.

You are free to use this image on you website, templates, etc., Please provide us with an attribution linkHow to Provide Attribution?Article Link to be HyperlinkedFor eg:Source: CEO vs CFO (wallstreetmojo.com)

CFO CFOThe full form of CFO is Chief Financial Executive, and he or she is a top level executive of the firm who is responsible for the firm’s overall finance functions and has the authority to make financial decisions for the organization. read more is the head accountant of a company and manages anything that has to do with the company’s finances. Their objective is more strategic toward business transformation and prioritizes cost management Cost ManagementCost management is an integral part of business management that works on the basis of estimates, where various activities such as data collection, data analysis and mechanisms, process evaluation, and event reporting are carried out so that the decision-maker can plan and control the organization’s budget requirements, allowing the decision-maker to make informed decisions.read more and balance with an increasing focus on profitable growth. Whereas the CEO is an individual who holds the organization’s highest rank, the primary responsibility includes major corporate decisions.

CFO vs CEO Infographics

Let us see the top differences between CFO and CEO.

Key Differences

CEOCEOChief Executive Officer is the full form of CEO. He is the most senior member of a corporate organization, an executive who oversees the whole administration and operations of the company and reports directly to the board of directors and chairman, with the sole purpose of generating wealth for the company’s stakeholders and shareholders. read more works strategically and play a critical role in the success of an organization and performs the following responsibility: –

  • Work according to the vision and target set by the company.Represent the company and address the management as required.It helps to understand the employees, directors, investors, and customers and what the company does.Address the critical issues associated with day-to-day business.Meeting with other business heads running ideas past, and collaborating for the new business opportunity.Decide on the investment opportunity by taking the view of other board members.Board Members.Board members comprise the individuals whom the shareholders elect as their representatives. They are responsible for taking crucial corporate decisions regarding the company’s policies, dividend payouts, top-level managers’ recruitment or layoff and executive compensation.read more

Whereas CFO works in a separate vertical of an organization and performs the task related to managing finance action of a company which includes: –

  • Managing cash flowDeveloping a structural plan for the budgetCash forecastingEnsuring cash lasts to the next valuation set-upMonitoring and reporting variancesBudgeting capital expenditureEvaluate lease vs. purchase evaluationManagement meetings (monthly and quarterly) to give the company’s track record, i.e., the company’s performance

The Chief Executive Officers and Chief Financial Officers require different skill sets to become more successful. Therefore, the originationOriginationOrigination in finance refers to the borrower applying for a loan or mortgage and getting it approved by the lender.read more looks for the following abilities because hiring people will take the company to a higher level. Below we have mentioned important skills to become more successful at work.

Skill Requirements

Important Skills Requirement for CEO

  • Know how to manage peopleLeadership skillsCommunication skillsRelationship building skillsNegotiation skillsStrategic developmentCreative thinkingStress management

Important Skills Requirement for CFO

  • Business understandingCommunication skillsRelationship building skillsFinance teambuilderStrategic developmentRisk identificationAccounting knowledgeBusiness acumenFraud preventionInvestment and credit riskCredit RiskCredit risk is the probability of a loss owing to the borrower’s failure to repay the loan or meet debt obligations. It refers to the possibility that the lender may not receive the debt’s principal and an interest component, resulting in interrupted cash flow and increased cost of collection.read moreRisk management and forecastingFinancial and regulatory reporting

CEO vs CFO Comparative Table

Conclusion

CEO and CFO are integral to every organization and play an impotent role in running a business. They are responsible for all the activities within an organization and help the directors and investors decide the investment decision like the expansion of business or merger and acquisition. Moreover, they represent an organization and build relationships with the government and co-founders. They also set the road for the company’s growth and business expansion and work together to achieve the company goals within the stipulated period.

This article is a guide to CEO vs. CFO. Here, we discuss the top 8 differences between CEO and CFO, infographics, and a comparative table. You may also have a look at the following articles: –

  • Merger & Acquisition ProcessCEO vs PresidentCFO vs ControllerJob Description of a CFO