When would a company need a CFO?
The Chief Financial Officer, or CFO, reports directly to the President/Chief Executive Officer (CEO) and directly assists the Chief Operating Officer (COO) on all strategic and tactical matters as they relate to budget management, cost benefit analysis, forecasting needs, and the securing of new funding.
There are many scenarios that may lead to an organization needing a CFO.
For example, if the leadership of an organization finds it difficult to make good financial decisions, or the business has grown beyond the capabilities of the accounting staff, hiring an outside CFO may be helpful.
Another sign would be if the management of cashflow has become the full-time duty of the owner/founder.
Many start-up and early growth enterprises require the presence of a Chief Financial Officer on a part-time or temporary basis.
What does a fractional or part-time CFO do initially when hired?
Initial duties include:
- Review the accounting system, evaluate the financial reporting as it is
- Make changes to improve efficiency and provide more effective financial reporting
- Review and evaluate cost and profitability reporting
- Create a realistic and intentional cashflow management plan
- Create a revenue & expense budget looking to the future
- Create a strategic pathway to achieve financial goals
- Train the key personnel in the use of new procedures
What ongoing activities do CFO services provide?
Ongoing duties include, but aren’t limited to:
- Host monthly management meeting
- Prepare comprehensive financial statements
- Update forecasts
- Strategic planning
- Support & train staff
I think I might want to hire an outside CFO, what should I do?
Contact us at 866-931-0224 for a consultation.
