04 Feb The Role of the CFO in Small Business
Whose job is it to make sense of all of the business numbers?
It isn’t the bookkeeper’s job. This is a clerical function. It isn’t the accountant’s job. That is to make sure that the bookkeeping is accurate, that records reconcile, and financial reports are completed on time. I like to use a baseball analogy…I go to a baseball game and see a lot of people in the stands keeping score, none are ready to manage. A CFO acts as your bench coach. The Chief Financial Officer’s (CFO), whose primary responsibility is to manage financial risk by analyzing the data, developing proactive strategies and tracking performance outcomes.
But who really needs a CFO? Everyone knows that only large companies have CFOs.
Actually, this perception is not true. In fact, there are few businesses of any size that can afford NOT to have a CFO! We have yet to meet a business owner or see a business we could not add value to. As a small business, EVERY decision seems strategic, the margin of error of poor decisions is often razor thin.
Having a CFO on your team will help you with:
o Creating Your Business Strategy
o Financial Modeling and Analysis
o Cash Flow Management
o Performance Monitoring
o Maintaining the Business Dashboard
o Budget Deviation Analysis
o Refining Strategy and Managing Change
Each of these functions must be performed on a routine and timely basis regardless of what size your business is. 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 Fractional 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.
Contact A Fractional CFO today to see how we can help you.