Which role is responsible for managing cash flow, budgets, and forecasts?

• A. Chief Executive Officer (CEO) - Makes major decisions for the company, oversees operations and resources, comes up with the company's vision, strategies, and mission, and reports to the board of directors
• B. Chief Financial Officer (CFO) - Manages and plans the cash flow, creates budgets, and forecasts whether the company will meet the set budget requirements
• C. Chief Operating Officer (COO) - Oversees the business's day-to-day operational and administrative functions
• D. Founder - The individual that developed or created the company

Answer: (B)

Managing cash flow, budgets, and forecasts is a finance function. The Chief Financial Officer is responsible for the company’s financial strategy and liquidity, overseeing cash management, preparing budgets, and creating forecasts to project future performance and resource needs. This role ensures resources align with strategic goals and helps the organization plan for shortages or surpluses. While the CEO guides overall direction, the COO runs day-to-day operations, and a founder may shape the vision, the specific duties described belong to the CFO.