Why Hire a CFO for Your Business?
A lot of organizations choose to implement a chief financial officer to aid in crucial financial decision-making, cash flow management, and strategic planning. The CFO has shifted from being strictly a cash flow manager to a higher level of accountability for how that cash is allocated. Basically, the role of a CFO has evolved quite a lot and is even seen as a necessary function in every company today, even small businesses. Let’s look at what a CFO does in a nutshell and why they’re important to any organization.
The Traditional CFO
The traditional CFO is a person who is responsible for the day-to-day finances of the company. This includes accounting, budgeting, financial reporting, internal auditing, and overseeing the finance/accounting department.
The CFO will work very closely with the board of directors (if your organization has one) to give the company a clear financial picture. If the board needs a new building, they’ll work with the CFO to determine if it’s financially viable. When it comes to small businesses, the CFO will work very closely with management to report on how the business is performing financially and projecting forward where the business will be going.
How CFOs Have Evolved Over the Years
Over the last few years, a lot of CFOs have been shifting towards the role of a strategic advisor. This takes the CFO into a more managerial position.
CFOs aren’t just in charge of the accounting department; they’re in charge of the overall cash flow of the company. They might be the one who cuts off funding to a losing project that the rest of the board is crazy about. A lot of companies and boards view this as a good thing. They want the CFO to be decisive and to implement cost cuts that the company can’t afford to carry.
Why Every Business Needs a CFO
The CFO is one of the most important players for any company because they help keep the company focused on maintaining a solid financial footing. They’re the one keeping a keen eye on all the numbers and making sure that the organization is spending money wisely.
Every company needs a CFO because every business has to manage its cash flow. Every dollar that goes out means that there’s less cash to work with in the future. The role of a CFO has evolved over the years because of the growth of technology and globalization.
When Does a Business Need a CFO?
A business almost always needs a CFO. Even a business that’s only a few years old should have a CFO to help manage cash flow. The more complex your company and the more decisions you have to make, the more a CFO can help you grow.
If a company has a lot of complex operations or projects that require a lot of funding, they need someone who is heavily focused on financial management.
Today, it takes a lot more to be a CFO than just being able to crunch numbers. They need to understand the market and how their company is doing in the greater scheme of things. If you’re looking for a high-level position that can be incredibly influential, being a CFO might be the best option for you.
If you’re considering hiring a CFO for your company, why not let a group of finance experts do all the work for you? CFO Strategies is a team of senior professionals with diverse financial experience capable of managing your organization’s day-to-day financial challenges. CFO Strategies not only will provide financial reporting of where your business has been, but they will also provide cash flow forecasting and projections on where your company is going financially. No matter how big or small your company is, CFO Strategies can help. Contact CFO Strategies today for a free business review and experience the benefits of a CFO as a service for your organization.