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What is CEO?
A CEO is the prominent executive of a corporation, business or non-profit organization. They are the primary decision-makers and run the management of a company. CEOs are chosen based on their leadership abilities and experience. Most corporations have a chief executive, but not all have one.
A CEO’s role is to manage a company’s internal resources and workforce. CEO oversees the daily operations of the company. CEO direct the business’s strategy and plan business growth. A CEO acts as a spokesperson for the company and explains the company’s operations to the public. CEOs oversee everything that goes on inside a business; they have total control over their business.
CEO ensure that all decisions they make are always ethical. A CEO oversees everything inside a business; they must have strong communication skills to communicate their goals to the public effectively.
The CEO is the head of an organization and is responsible for making decisions that will impact the company’s success. They also set the company’s strategy and make sure that all activities are aligned with this strategy. In addition to these responsibilities, the CEO also manages the company’s day-to-day operations and ensures that all employees are working towards the same goal.
What is CFO?
The CFO, or Chief Financial Officer, is an organization’s second highest-ranking corporate officer. They are responsible for the financial well-being of the company and its shareholders. The CFO oversees the financial department and ensures that the company complies with all financial regulations. In addition, the CFO is responsible for preparing the company’s financial statements and overseeing the company’s budget.
Additionally, he is responsible for monitoring spending on inventory and breaking down each account to determine how much money is available for expenditures. Essentially, the CFO knows how to manage and use money effectively.
CEOs need to let their CFOs know everything they need to know about their companies to run them effectively. For example, he needs to know which expenses are necessary and which can be cut or delayed without affecting the business. He also needs to know precisely how much money his company has so he can make wise budget decisions. Furthermore, CFO needs to be aware of any tax laws regarding business income so his company can pay its fair share of taxes. A CFO is essential in any business; without one, a company cannot effectively manage its finances.
A board needs a CFO on staff to make decisions and plan for the company’s future. For example, if the CEO wants to start a new business venture, he will need access to some company funds. A knowledgeable CFO ensures that all financial matters are taken care of appropriately. Plus, it keeps shareholders happy by ensuring the company has enough funds for ongoing operations and new business initiatives. Having a CFO on staff ensures sound business decisions that benefit everyone involved with an organization – both profitably and philanthropically – without bias toward shareholders’ or stockholders’ best interests.
Difference Between CEO and CFO
One of the primary duties of any corporate finance professional is to provide insight into the financial decision-making of the firm. This includes both the short-term and long-term financial planning of the company. The CEO is responsible for the overall management of the company and its strategic direction.
A CEO is the chief executive officer of a company or other organization, and a CFO is the chief financial officer. The CEO is responsible for the company’s overall operations and strategic direction. The CFO is responsible for financial planning and management, including accounting, budgeting, and investment decisions.
Comparison Between CEO and CFO
|Parameter of Comparison||CEO||CFO|
|Responsibility||Head of organization and oversees all departments||Oversees the finance department and reports to CEO|
|Interacts with all parties||Yes||When it comes to finance|
|Risk and Gains||Examines both gain and risks in organizations’ business||Evaluates risk and gains in financial sector|
|Reports||Reports to board of directors||Reports to CEO|
|Background||It can come from any background||Mostly from financial background|