What is a CFO? and how can they help your business?
CFO is an abbreviation of Chief Financial Officer, and typically refers to a qualified professional accountant who has been advising businesses as a career. A good CFO can add immense value to any business.
All business owners understand the role of a book-keeper, which is normally an administrative function where the individual is responsible for data entry of receipts and purchases into an accounting system such as Xero (cloud accounting software used by Profits Plus Accountants).
Business owners also understand the role of the Accountant i.e to make sure that the bookkeeping is accurate, that the accounting transactions are reconciled, and the financial reports are prepared on time.
So whose job is it to make sense of the financial reports?
This is where a Chief Financial Officer also called the CFO adds value. The CFO’s primary responsibility is to manage financial risk by analyzing the data, developing proactive strategies and tracking performance outcomes.
But who really needs a CFO? Can only large companies employ a CFO.
Not true at all.
In fact, very few businesses can afford NOT to have a CFO and having a CFO on your team will help you with:
- Creating Your Business Strategy
- Financial Modeling and Analysis
- Performance Monitoring
- Maintaining the Business Dashboard
- Budget Deviation Analysis
- Refining Strategy and Managing Change
Each of these functions must be performed on a routine and timely basis regardless of the size of your business. These functions also require specific skills, knowledge and experience to be effective. For most smaller firms, they are not functions that are performed on a full-time basis.
Securing this level of talent is going to cost a lot – – or is it?
Welcome to the age of the part-time CFO, a talent pool of senior level strategic planning and financial management expertise that is available when you need it, how you need it and where you need it. In addition, because the CFO’s primary contribution results in improved business performance, the cost is often more than covered by the resulting savings and increased profitability.
Did you know?
“…that Profits Plus Accountant offer part-time CFO services to help organizations with financial modeling, performance measurement, expense control, acquiring funding, risk management, mergers, acquisitions, divestitures and business management information systems?
Our firm specializes in working with small and mid-sized firms that will benefit from the finance and strategic planning expertise without the full-time staffing expense. Contact us for more information.”