What is a Chief Financial Officer (“CFO”)?

• A CFO ensures accounting systems are providing accurate information and using financial data to support the CEO in strategic decisions.

• A CFO tests strategic decisions by providing numeric insights on how much value decisions could bring or detract.

• A CFO extrapolates findings from the numbers to allow owners make more informed decisions and influence the outcomes they want.

• A CFO guides the CEO in ensuring decisions support the company’s goals and building enterprise value.

• A CFO works with stakeholders such as the bank and shareholders on determining the right capital structure and meeting obligations.

• A CFO provides counsel around strategic pain points such as: supplier dependency, employee compensation, legal exposure, financial controls, theft, regulatory, and insurance, etc.

How do you know when a CFO makes sense for your business? 

Timing - Is your business is growing yet you still are feeling tight on cash?Are you ready to expand but paralyzed by the options and their potential cost/benefit? Do you hope to sell your business in the future and want to ensure your records are complete and the business is performing at its potential?  

Goals - Is your business pursuing growth? Is your team looking to grow profitability or evaluate expansion options? A CFO can be an invaluable tool in aiming before you shoot.

If you have a book keeper and/or a controller, do you need a CFO?

Book keepers and controllers handle the intake and assembly of historical information for record and compliance purposes. A CFO will ensure this information is correct and use it to provide strategic direction.

Does your team:

• Review this information for the key-insights it provides or if it is matching or exceed the targets you and your team are following?

• Are management and employees know of these targets and working in unison toward them?

• Have the time and competency in evaluating investment opportunities?