CEO vs CFO

A company CEO is a highest-ranking executive with the primary responsibilities of making major corporate decisions and being a communication medium between corporate working and its board of directors. In addition, he is the company’s public face, elected by shareholders and the board. Whereas CFO is a senior executive responsible for the financial affairs of a company or other institution, which involves planning, making significant decisions relating to investment, making strategies, and managing economic activities.

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

CFO 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 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.

Let us see the top differences between CFO and CEO.

CEO 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.

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 flow
• Developing a structural plan for the budget
• Cash forecasting
• Ensuring cash lasts to the next valuation set-up
• Monitoring and reporting variances
• Budgeting capital expenditure
• Evaluate lease vs. purchase evaluation
• Management 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 origination 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.

Important Skills Requirement for CEO

• Know how to manage people
• Leadership skills
• Communication skills
• Relationship building skills
• Negotiation skills
• Strategic development
• Creative thinking
• Stress management

Important Skills Requirement for CFO

• Business understanding
• Communication skills
• Relationship building skills
• Finance teambuilder
• Strategic development
• Risk identification
• Accounting knowledge
• Business acumen
• Fraud prevention
• Investment and credit risk
• Risk management and forecasting
• Financial and regulatory reporting

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.