profitjets logo

What Does An E-Commerce CFO Do?

What Does An E-Commerce CFO Do
Read Time: 4 min

CFO is the chief financial officer, a C-level executive responsible for managing, monitoring, and regulating an organization’s all financial functions. Traditionally, a CFO does various jobs in an organization, from analyzing the data to forecasting business needs and providing regulatory advisory. These days businesses are getting online, and the success of online business in the corporate world depends on the structured financial back office. 

What Is An eCommerce CFO?

What Is An eCommerce CFO
What Is An eCommerce CFO

In the age of the e-commerce marketplace, an eCommerce CFO has to do a lot, which is why only those looking for a dynamic career should consider this position. An eCommerce CFO plans to create and implement online economic strategies for eCommerce businesses. To do this, they must assess and evaluate large amounts of data, deciding whether a company is going on track to reach its intended targets or diverting from them. If the eCommerce organization struggles to earn revenue, an eCommerce CFO must arrange client meetings with the business owner. Together, they can create a plan of action that can improve outcomes in the future. Let us have a look at the roles of an E-Commerce CFO. 

Traditional Role Of A CFO

Traditional Role Of A CFO
Traditional Role Of A CFO

Before learning the role of an eCommerce CFO, you must know about their traditional role. 

  • Data Analysis

We know the role of the CFO, such as presenting and analyzing the reports timely while providing an accurate financial perspective. The data presented by the CFO is shown to everyone, like employees, shareholders, analysts, creditors, and all other members of the management. Due to this sensitivity, the CFO must provide accurate data. 

  • Executive Advisory

The CFO is solely responsible for the business’s financial health, and they should be aware of the process of investing for the upliftment of the organization, considering the risks associated as well as the liquidity so that they can make decisions accordingly. The CFO manages an organization’s financial structure, finding internal financing, debt proportions, and equity. One of the most valued CFO duties is to take care of these concerns related to the financial structure and find ways to generate more revenue. 

  • Forecasting

Besides, taking care of an organization’s present and historical status is not the only thing a CFO has to worry about. But the most important role they have is building and securing a company’s economic backbone. For this reason, the CFO must have the understanding to analyze real-time data and find areas where the organization needs to make improvements and determine the most effective segments. The review of the current performance and evaluation needed the utilization of financial forecasting and modeling. With the assistance of these two, an organization can make the correct prediction for its policies and procedures. With these sound decisions, a CFO assures that they succeed in the long run. 

  • Financial Risk Assessment

Financial risk means a condition where your eCommerce business could lose revenue. While allocating budgets to various business areas, it is important to determine the associated financial risk. After settling into the role of an eCommerce CFO, one needs to manage and calculate all the possible forms of financial risks.

  • Develop A Budget 

Budgeting is the primary duty of a CFO, and they have to develop budgets for each of the organization’s core areas. Usually, an eCommerce CFO is required to manage the budget of the following areas.

  • Shipping of products
  • Staff and Payroll
  • Marketing & Advertising
  • Costs Of Software
    • Email Marketing Platforms
    • Project Management Tools
    • Website Plugins
    • Web Hosting
    • Editing Programs
  • Managing office Supplies
  • Tech & Equipment
  • Analysis Of Data & Reporting

After implementing the budgets, a CFO has to perform data analysis regularly, examine the new results, and understand what works and is not. Here are the figures that a CFO will study:

  • Inbound & Outbound web traffic
  • Overall data on the sales of a specific product
  • Create a strategy to get more views of the company’s product by focusing on advertising strategy in social media and on other landing pages.
  • Study The demographics of your visitors
  • When are the customers dropping at their buying journey, and why?
  • What are the daily/monthly/yearly purchasing trends of customers?
  • How are the campaigns working?

The Conclusion

An E-Commerce CFO
An E-Commerce CFO

In this digital era, an eCommerce CFO is inevitable. They can change your company’s future. If your eCommerce venture is suffering, it’s time to hire an efficient CFO. Hire Profit Jets for expert financial consulting and also get specialized CFO services at a budget-friendly rate. We have a dedicated team of professionals who work exclusively on specific projects and offer the best solutions to our clients. Connect with us today and let us know your business requirements. We will offer you the best CFO services within your budget.