How is CFO work in a startup different from work in a corporation?

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The Chief Financial Officer (CFO) plays a key role in the success of a company, whether it is a startup or a corporation. Although the basic functions of a CFO remain the same, the approaches to their implementation and priorities vary significantly depending on the stage of the business development and its scale.

Olga Syrbu, CFO of the educational platform kazakhstan whatsapp phone number Netologiya, spoke about the main differences in the work of CFOs in startups and corporations and shared what features of financial strategy are inherent in companies at different stages.

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Content:

Key Functions of a CFO
Key Differences Between a Startup and a Corporate CFO

Organization of business processes

Key Functions of a CFO
According to a PwC study , the role of the CFO is no longer limited to managing the company's money. Now the CFO is a strategic advisor and the CEO's right hand, who must help the business achieve its goals in the most effective way.

Before we look at the differences between the CFO role in companies of different sizes, it's worth understanding the key functions and responsibilities of a CFO:

Accountancy – This includes bookkeeping, as well as statistical and tax reporting. This is the core function of the CFO, ensuring the accuracy and transparency of the company’s financial data.
Treasury - The CFO is responsible for the effective management of cash flow and liquidity.
IFRS - preparation of financial statements in accordance with international standards.
Management Reporting - The CFO provides key information for management decisions by creating reports that reflect current financial and operational performance.
Financial analysis, planning and budgeting - these functions allow a company to plan its resources and assess its financial health and development prospects.
Financial Controlling - The CFO establishes and maintains internal controls to prevent errors and to ensure compliance with internal and external requirements.
Interaction with shareholders and investors - The CFO plays a key role in raising capital, informing shareholders and other stakeholders.
Cross-functional collaboration – coordinating work with other departments within the company. The CFO must work closely with other functions, such as production , marketing , and sales , to achieve the company's overall goals.

Key Differences Between a CFO's Job at a Startup and a Corporation
In order to understand the main differences in the work of a CFO in a startup and a corporation within the framework of this material, we will define what each of these structures typically represents.

A corporation is typically a large company or part of a group of companies whose shares can be traded on a stock exchange. It typically has a stable core business that generates sustainable revenue, standardized processes, and established practices.

A startup is a company that is at the stage of growth, testing and development of business hypotheses. Startups are often planned to be unprofitable, since they are aimed at growth and innovation, which requires significant investment in the early stages.

Where to get money for business and how to manage finances? Experts from the educational platform for entrepreneurs "Kurs" will tell you .
Now let's look at the main differences in the work of financial directors in corporations and startups:


Focus
Since corporations are often public companies, it is important for the CFO to ensure the transparency of financial reports and compliance with regulatory requirements. In this case, the CFO builds his work based on compliance requirements: ensuring compliance with the requirements of external regulators - shareholders, stock exchanges, currency control requirements, etc.

In a startup, the CFO often plays the role of a “player coach.” He or she helps build business processes and focuses on ensuring growth. The CFO must be prepared to make quick decisions and adapt financial strategies in conditions of uncertainty.