CEO vs. CFO: What’s the Difference Between a CEO and CFO?

A chief executive officer (CEO) is the highest-ranking executive in a company or nonprofit organization. Often the CEO acts as the face of the company and communicates the company’s vision, business strategy, strategic goals, and shareholder value both internally and outside the organization.

CEO responsibilities vary depending on the size of the company. In a startup or smaller company, the CEO role might be involved in implementing strategic decisions in the day-to-day operations. In larger companies, a CEO might work with top executives—for example, an executive director or managing director to help inform company strategy or a chief operating officer (COO) to implement partnerships. By outsourcing smaller projects to a team of vice presidents or senior executives, the CEO can focus on long-term goals and business decisions.

Additionally, a CEO is a liaison between the board of directors and the entire management team. Representing the highest level of the executive team, the CEO establishes the company culture and is the top decision-maker with ultimate authority. The stakes of the position are usually high since the success of the business relies on their vision and leadership skills.

The chief financial officer (CFO) is responsible for managing a company's cash flow and budgets, financial reporting, financial planning and forecasting, assessment of financial risks and profitability, and any and all other financial data. The CFO communicates closely with the CEO, business partners, and other stakeholders about the financial performance of the company.

Since the CFO position is responsible for all financial decision-making for the company, this person is usually one of the highest-ranking executives. A CFO will usually possess an accounting background or experience as a financial analyst. They might have advanced degrees beyond a bachelor’s degree, such as a master’s degree, in a related field. Additionally, a CFO might have qualifications in strategic planning or financial risk management or be a certified public accountant (CPA).

There are a host of differences between the role of a chief executive officer and a chief financial officer within a company. Here are three areas you can use to differentiate a CEO from a CFO:

1. 1. Communication: The CEO is the primary liaison with all stakeholders and communicates with all of senior management about business strategy and general profitability trends, while the CFO will liaise with stakeholders and each vice president specifically about financial reporting. Like a CEO, a CFO needs to have good communication skills since they will be responsible for communicating the state of all the financial operations to lenders and other management positions; however, in comparison to the role of a CEO, who is the face of the company, a CFO does not communicate as much externally.
2. 2. Scope of duties: A CEO leads all departments in an organization and has a wide range of duties related to public relations, customer acquisition, fundraising, human resources and policy-making. The CEO must find ways to ensure profitability and secure ample cash flow for the company when taking the big picture into consideration. Often the CEO will work closely with the chief operating officer to implement the best business practices across the entire organization. In contrast, a CFO leads and oversees the financial department specifically and, therefore, has a narrow scope of duties. A CFO focuses on financial aspects of the company, including monitoring financial metrics, financial management, and financial planning. The CFO monitors profitability so as to support the day-to-day operations of the business.
3. 3. Strategy: The CEO is responsible for the holistic business strategy of the entire organization and will, therefore, need to have total oversight in the areas of marketing, product development, public relations, customer service, sales, and more. By contrast, the CFO works to support the CEO’s strategies and initiatives through careful financial planning and budgeting.

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