What is the difference between a senior finance manager and a CFO? (2024)

What is the difference between a senior finance manager and a CFO?

Finance managers are more transactional, while CFOs are more of strategic. Typical finance manager takes care of day to day finance operations such as accounts, treasury, book keeping, payroll, etc...

Is CFO higher than finance manager?

The CFO is in the highest position, almost the same as the CEO. Even though the CFO reports their job directly to the CEO, they still have the same position as the executive of the company. In the financial field, the finance director is under CFO.

Is a CFO a senior manager?

The CFO is a senior manager with the primary role of overseeing the management of the company's finances and financial activities, including financial risk management, financial planning, financial reporting, record-keeping, signing checks, and analysis of data.

Can a finance manager become a CFO?

Roles such as financial controller or finance manager can help build the necessary skills and expertise needed for a CFO position.

What is higher than a finance manager?

The role of CFO

In a typical large organization, the Chief Financial Officer (CFO) is the highest-ranking finance officer in the company.

What position is right below a CFO?

Right below the CFO you'll usually find the VP of Finance, Head of Finance, or Corporate Controller. They usually oversee the day-to-day management of the finance team and records.

What is the hierarchy of job titles in finance?

Finance Job Titles Hierarchy

The leader of most finance teams is the Chief Financial Officer (CFO) and they report to the CEO. At smaller companies the top finance position might instead be the Vice President of Finance or Treasurer.

What position is higher than CFO?

The COO is second in command to the CEO and works very closely with them. They are also hired by the CEO. The CFO is hired by the CEO and works one-level under them along with the COO and other C-suite positions.

What position comes after CFO?

C-suite gets its name from the titles of top senior executives, which tend to start with the letter C, for "chief," as in chief executive officer (CEO), chief financial officer (CFO), chief operating officer (COO), and chief information officer (CIO).

Who is above the senior manager?

Traditionally, the job description for a director supersedes even that of a senior manager. Directors operate at the highest level, often reporting directly to a company's shareholders on the board of directors. High-level management might interface with directors, but they primarily do so only to receive instructions.

Is CFO and financial manager the same?

Both a Finance Manager and CFO are management professionals, but one of the key differences between the two lies in the scope of their management purview. A CFO is tasked with the strategic management of the organisation's finance department.

Is CFO higher than VP of finance?

The role of a Chief Financial Officer (CFO) is a senior-level position that is responsible for the overall financial strategy and management of a company while the role of a VP of Finance is responsible for the day-to-day financial management and operations of a company.

Can you have a head of finance and CFO?

There may come a point in a company's growth journey and strategy when it will need both a CFO and a VP of Finance. However, there is no reason to hire one over the other if a company is not large enough to justify employing both positions.

Who typically reports to CFO?

Some CFOs have the title CFOO for chief financial and operating officer. In the majority of countries, finance directors (FD) typically report into the CFO, and FD is the level before reaching CFO.

Is finance manager at top level?

Finance Managers are at the heart of mid-level financial roles, responsible for financial reporting, budgeting, and forecasting. They lead teams in analyzing financial data to support business decisions and often report to senior financial executives, contributing to the overall financial strategy.

What is another title for a CFO?

Other senior finance roles

There are other senior finance titles that may overlap CFO responsibilities based on organization size. These include Chief Accounting Officer (CAO), Finance Director, VP Finance and Head of Finance. The CAO is generally responsible for overseeing all accounting operations.

Who is next in line after CFO?

The top of most management teams has at least a Chief Executive Officer (CEO), a Chief Financial Officer (CFO), and a Chief Operations Officer (COO).

Who is second in command to CFO?

The chief operating officer (COO) is the second-in-command of an organization. They are responsible for managing and directing all aspects of operations and depending on the organization this can include Finance, Human Resources, Marketing, Sales, Customer Service, etc.

Does a CFO have a boss?

Role and Responsibilities of Chief Financial Officers (CFOs)

The CFO reports to the CEO but remains one of the key personnel in any company. In the financial industry, it is a high-ranking position, and in other industries, it is usually the third-highest position in a company.

What are the 7 levels of the job title hierarchy?

What is another name for a finance manager?

What is the difference between a VP of finance and a CFO?

Key Takeaway: As a growing business, it can be challenging to determine whether you need a CFO or VP of Finance. A CFO is responsible for managing the overall financial strategy of your company, while a VP of Finance is responsible for managing the day-to-day financial operations.

Who sits below the CFO?

At the top if the CFO. Finance Director/ VP of Finance is essentially the same role, however if you have a VP of Fin, but need a strategic person at the same level (or a little higher) then you have the CFO. Below that is Controller (Chief Accounting Officer).

Can CFO make millions?

To shed light on key CFO compensation trends, this publication analyzes the compensation packages of top finance officers at S&P 500 companies since 2018. The median total reported compensation for CFOs remained stable at $4.7 million across 2021 and 2022.

What level of management is a CFO?

The CFO in a company is someone who is a senior executive who manages all the financial aspects of a company. They mainly focus on financial planning and cash flow. They also look at a company's strengths and weaknesses when it comes to finances, and they try to make action plans where the company can improve.