Chief Financial Officers are the highest-level financial officers in an organization. They report directly to the CEO and work closely with the board of directors. In short, the best practice, and clearly the most common, is for the CFO to report directly to the CEO. The main reason why a CFO should serve on a board of directors is directly related to his role as the chief executive responsible for the organization's financial statements.
When the board approves the financial statements presented by the CFO position, it becomes responsible for those decisions. In addition, including the CFO on the board of directors creates stronger financial oversight and transparency. The role of the CFO must play an important role in business strategy and help make decisions, especially when it comes to mergers and acquisitions. The CFO is one of the highest-ranking executives in a company.
Most hierarchical diagrams place chief financial officers on an equal footing with other directors (for example, as a chief financial officer, managing the relationship between the CEO and the board of directors is key to the success of the company's management). To continue your professional growth in the position of CFO, we have compiled some key concepts that you should consider when managing the relationship between the CEO and the board of directors. In a typical business structure, the CFO reports to the CEO, although it is common for both positions to serve on the board of directors.