How do you answer this question: What is a CFO?

Simply tell them "I control the checkbook." :)

Honestly, I rarely introduce myself as a CFO unless its in a professional situation where I'd expect the person to know what a CFO is.

On a personal level, when someone asks me what I do I tell them I'm an accountant. If they know enough about the industry to realize that we're not all public accountants and ask a followup question, I tell them I'm a CFO and describe it as the person managing the financial side of the business.

Interesting comments. When I am asked "What do you do?" my immediate response is that I am a "Rent a CFO," that usually prompts the question "What does the mean?," to which I explain, which can include anything from minor bookkeeping to IPO, to organizational build out, establishment of international operations, licensing, merger and acquisitions, etc. I have worked for a number of years as a consultant and employed as a CFO, mostly in the life sciences space (medical device and biotech startups), software, clean energy tech, etc.

Not on point to Wayne's question, but I like getting involved very earlier in the process than later. I find having the opportunity to lay down the infrastructure so that I understand and know how much I can rely on the accounting systems and how they may evolve as the company grows so that I have the information I need when I need it. My experience has been that something as simple as establishing a chart of accounts and department (business unite, etc.) structure that fits the specific business is critical to avoiding the need to have to restructure things at a later date. That said it is also challenging for startups to envision what they might be in the future so your system has to be flexible and responsive to change.

Wayne – My experience in Executive Search in the Accounting/Finance arena has taught me that the Title of CFO can mean a variety of things depending on the company. If you are looking for a do-all, kind of blanket response I’d suggest something along the lines of “A CFO manages the accounting and finance side of a business, protects the company’s assets, and partners with the CEO or owner to successfully guide the growth of the company”.

Wayne,

My mom was a CFO as well, and one day she described her role quite succinctly: "I'm the resident b****.", perhaps the only casual use of strong language I have ever heard her utter. I have always liked that nutshell; not because it captures all of the aspects of the role: fund raising, strategy, analytics, and a host of "business partnering" things, get lost in that description.

I like it because it calls out a balance, a role invested on CFOs to be the voice of reason, to be the gate-keeper, to be the final bulwark of fiduciary responsibility. Past a certain scale, the C-staff, CFO included, cannot hope to see the details. The CFO seems particularly invested in ensuring that the owners are protected and is tasked with the implementation of things like "process" and "controls". To be clear, every executive team I've worked with cares about this stuff, but you cannot have it both ways; as the rest of the team necessarily are looking for ways to expand the business, the CFO is the person who needs to step back from the operations and be the person who draws lines.

A heathly C-staff should be a team focused on growth and success, and the tasks that this involve are not easy to define for anyone on the team. Notably, I've been tasked with writing marketing copy, doing plant layouts, speaking at tradeshows...etc. That being said, I don't recall anyone else ever being asked to institute financial controls.

To @Marc's point, the consultant-cum-CFO can be just a book-keeper, or a SOX implementer, or an international legal & ops structure architect...even last week I was editing a press release. However, like Marc I like getting involved early as well because I feel the value of the balance, and in a consulting role it takes longer to develop the trust relationships so that your colleagues look to your balancing role as a resource, not as a constraint...and in a consulting role you often lack the positional authority be that balance.

If this feels like it runs contrary to the NYT article you linked, I would argue that the article is an *and* to this core value prop. As CFO, there is an assumption that you have talent and experience and can offload tons of work from the CEO, as well as lead your own value generation initiatives, and the article describes but a few of the points of value a CFO is able to, in some cases uniquely, bring.

Keith - I frequently use your Mom's line as well.

Keith , Donna, Marc, Brenda, et al,

First off, the NYT article is only one example (I have others as I'm sure you do as well if you are a "Rent a CFO").

And yes, Donna is quite right, in that no one really knows what a CFO does (except maybe Keith's mom :) )

And like several of the comments here, the earlier we get involved in a company (with proviso stated in a second) the better off that company can and will be; all things being equal (a lousy value proposition is a lousy value proposition and nothing will change that). The proviso is that management (the business owner) needs to a) understand the role of the CFO, b) understand their limitations, c) listen to our sage advice and d) be able (want) to pay us, just like they pay their lawyer and CPA (and I'm not necessarily talking same rate, but we can dream).

I also agree with Donna and use Brenda's reply.

When people ask me what I do in a very informal setting, I use the line my first boss (in public) used to say "I'm a big bean counter".

I am a CFO for a small manufacturer ($300MM in sales) and when I am asked by non-professionals that question I usually reply "accountant". However, I know there are some CFOs out there without ANY accounting qualifications whatsoever. That said, I have migrated from accountant to controller to CFO, and there are BIG differences in what the individual IS as opposed to what he/she does on a daily basis. I found there is more pressure/stress at the CFO level, because I'm called upon to translate what operations has done (and propose to do) in financial terms so the financial community can evaluate. I also have to be able to communicate with all levels of the operations side of the business. Is it necessary to be an accountant to be successful as a CFO? Not if you hire a good controller or accountant, depending on the size of the organization.

I often describe the accounting function as financial reporting, looking through the rearview mirror to see where we have been, and the finance function as looking through the windshield, to determine where we are going.

Accounting distills and reconciles vast amounts of individual transactions to summary reports, and the CFO function expands and forecasts those numbers to align with the strategy and goals of the business.

I try to emphasize that they are two very distinct functions, as well as skill- and mind-sets.

I agree with most all of you but I would like to add that not always a CFO is an accountant, could be a Finance Professional (BA Bachelor with MBA in Finance or Finance graduated) I have been working in Finance for more than 20 years and I have been in the CFO possition, not only taking care of the books (is part of it) but looking and thinking in new Financial strategies into the organization for adding value to the shareholders.