Business owners can’t do everything alone. At some point, you will need help. If you have dreams of building a business to the 7-figure mark and beyond, you will need to bring in some assistance to help with growth strategy and finance management. Chief Financial Officers (CFOs) are whom you need in your business.
There is much confusion about the role of the CFO versus a controller or accountant. Accountants look at historical data of a business, complete tax returns, and report on what has happened in the company. There is a focus on regulatory reporting and compliance.
CFOs are proactive in the business and are strategists. They align the company’s goals, which is typically growth and profit optimization, through budgeting, forecasting, and tax-saving strategies.
There is no other role in the company that is better positioned than the CFO to create financial success.
A CFO provides key insights to advise the Chief Executive Officer.
Often, CFOs are called upon to serve when a business is undergoing rapid growth, planning an expansion, working on profitability, creating financial models for capital raises, or providing leadership in the finance department.
When you are ready to bring a CFO to your team, you will gain financial benefits such as increased profit margins, cost cutting, increased revenue and capital asset management.
The top benefits to working with a CFO:
1. Forward thinking
Creating financial plans and growth strategies are strengths for CFOs. Understanding the financial goals of the business and mapping out the revenue goals and profit margins for the business with one-year forecasts and five-year-plus planning is giving the company a clear plan and direction to achieve its goals.
CFOs see the big picture and vision for the business. CFOs plan out the strategic growth of that goal and identify any threats or risks that can jeopardize reaching the final goal, all while communicating effectively and getting buy-in from the team.
3. Navigate growth
Forecasting growth plans and strategies and keeping the business accountable to their goals is a vital role. It’s through monitoring the progression of the goals and factoring in what is working and what isn’t allows the business to course correct early and save money, time and effort on things that aren’t working to achieve goals.
4. Financial success
Creating and maintaining profitable businesses is key to business success. CFOs monitor profit margins for the company and other essential key performance indicators to ensure the business is optimizing profit.
The bottom line is that if you are a business owner planning growth for your business in 2022, you will want to consider the services of a CFO. The good news for small to medium-sized businesses (SMBs) who may not have the budget to bring on a full-time CFO is that there are fractional CFOs, also known as part-time CFOs, who work with SMBs and help them achieve their financial goals. It’s an excellent solution where SMBs still have access to a qualified CFO’s skill set and knowledge on a part-time basis.