Description of a Finance Officer in an Organization

Financial Officers

Nonprofits of all kinds have to fight in these tough times to earn donations or even some business-related revenues associated with their missions. But many people forget that the fiscal responsibility of these public benefit corporations extends beyond the act of earning their money or gathering donations. They need also to accurately report the revenues they earn and ensure that the dollars are spent in accordance with their promises. Traditional business investments can be lax in the pursuit of profits, but charities have to be very honest as they try to help others.

The job of the Financial Officer is to ensure that the records and actions of the club are as consistent with these nonprofit and social benefit expectations as possible. This person (sometimes with a committee) must be part of the leadership team and must take the steps necessary to help the organization's director and governing board make intelligent financial decisions (CIPFA, 2009).

In smaller clubs and organizations, the Financial Officer is often the Treasurer (Writer, 2012). These responsibilities mostly focus on physically handling the money that comes in, making deposits, writing checks and the like. This responsibility often extends to dealing with cash from normal operations or through special events. The Treasurer also makes sure that invoices are paid and receipts for those payments are maintained. More often than not, the Treasurer also contributes to preparing the annual budget and then verifying that the budget is followed as best as possible. The Treasurer usually prepares corporate and tax documents, too.

In larger or more complex organizations, the Financial Officers seeks to do the same tasks but also with greater responsibilities (CIPFA, 2009). These larger expectations center on the tone and professionalism of the organization and the ways in which it complies with often complex accounting and audit expectations. If a nonprofit business accepts or earns public revenues (government or from corporate agreements, for example), it may be the responsibility of the chief financial person (often Chief Financial Officer, or CFO) to make sure that they organization fully complies with the public expectations associated with completing these agreements. The Chartered Institute of Public Finance & Accountability explains this as:

CFOs everywhere have a responsibility to ensure that their organisations control and manage money well, and that strategic planning and decision making are supported by sound analysis. In the public service context, CFOs must also meet the demands of openness and accountability in decision making, balance competition for limited resources across a range of worthwhile objectives, deliver value for money and safeguard taxpayers' money (CIPFA, 2012:3).