5 Benefits Of CFO Services
What are the benefits of CFO services? It’s no secret that all companies have a complex financial structure. This economic structure is different for every company, but it’s the backbone of the operation. However, this also means that it must be appropriately managed, or a company can end up financially in dire straits.
As a result, many companies have a CFO (Chief Financial Officer) on their team. For midsize companies, a CFO oversees the financial department. The CFO is responsible for not just financial management but also financial forecasting, planning, and risk management. They also take care of the company budget. While many companies have a CFO, many decide not to hire one because they think their accounting and bookkeeping teams are enough.
If your company only has a bookkeeper, here are 5 benefits of CFO services:
5 Helpful Benefits of Having a CFO (Chief Financial Officer)
#1 – Develops Clear Business Strategies
Every company should have an official business strategy. If a company doesn’t have a plan, they don’t know which direction they are heading in, and its team won’t have the guidance they need. One of the most significant responsibilities of the CFO is to determine this direction.
#2 – Accuracy in Reporting
The CFO has to create financial reports that are accurate, detailed, and honest. These reports include the company’s financial statements, budgets, and other financial documents, including but not limited to an analysis of general and administrative expenses, earnings forecasts, projections, and proformas.
The CFO also has to ensure that the reports are accurate and complete with no errors and are easy to understand. Aside from the financial statements, the CFO will create reports on how the company is doing, performing, and whether or not it’s making a profit.
This is also where a company’s financial health comes in. When the CFO creates these reports, they will compare them to the previous financial statements to see how the company is doing. For example, the CFO might generate a cash flow report that shows how much money the company is bringing in and whether the company has enough cash to cover its financial obligations.
#3 – Lesser Oversight
The CFO tends to be the boss’s, right-hand man. The CFO works closely with the CEO or the president in most companies. This means that the CFO will be tasked with getting information on the company’s performance and preparing reports on it to present to the CEO/President.
Should a company have a board of directors, the CFO will also be responsible for presenting the company’s financial health at the board of director meetings. The president and/or board then will make decisions based on how the company is performing and where the company will be heading financially. The CFO can help reduce the amount of monitoring that the president and their board are doing, as the CFO will do the heavy lifting in most cases.
#4 – Saves Valuable Time and Money
The most significant benefit of having a CFO is that they can save you money, time, and effort. Since a CFO is responsible for the company’s financial health, they’ll look into all financial reports and figures. They also perform monthly and quarterly forecasting tasks to see how the company’s performance is going.
A CFO can also help a company cut costs. Part of the CFO’s responsibility is to analyze costs and find ways to reduce expenses where the company may be overspending.
#5 – Easy Scalability
Scalability is necessary for any company, and having a CFO ensures that it’s covered. A CFO will help to identify the best growth opportunities for the company. One perfect example is helping the company invest its money to increase profits and cash flow. This is better than holding onto the money and not doing anything since it won’t do the company any favors.
There are many more benefits of CFO services. While there are still some companies that don’t have one, it could mean the difference between success and failure. When you hire a CFO, they will help guide your company from a financial perspective.
CFO Strategies provides top-quality CFO services for companies. We understand how essential a company’s operations can be, so our professional CFO experts will develop solutions and work with you to help you reach your goals and objectives. Reach out today and allow us to create your strategy!