It’s hard enough running a business as it is, let alone trying to decipher complex financial statements and making sense of profit and loss sheets. Hiring a CFO might be just the thing your business needs to maximise its earnings potential. CFO means Chief Financial Officer, and this is the individual who is delegated of managing the financial side of a company. CFO’s usually have obtained degrees in accounting, finance or business management and many cases may have an MBA. A CFO plays a critical role within a company and has a lot of input in regards to a company’s strategic planning. Many CFO’s have excellent leadership skills since they often manage professionals and in some cases even teams. The CFO often works very closely with the CEO, and as a result, it is imperative that these key individuals have a good rapport.
The Chief Financial Officer is at the head of the accounting department and oversees the accountant and controller. A CFO’s duties may include developing and analysing the yearly budget, implementing complex accounting and financial systems, drafting business plans, determining the optimal capital structure, developing cash flow forecasts and balance sheets. He/she is also responsible for analysing financial data in-depth, building relationships with funding sources such as banks, identifying of equity for business expansion, exit planning consulting and giving advice to the Chief Executive Officer.
The majority of new and small businesses do not have a CFO on staff. General bookkeeping duties are usually dealt with by the owner or a clerical worker. As the firm advances, there may be financial questions and accounting issues which will require the expertise of a CFO. A CFO can also be very useful if a company is offering an IPO or is involved in mergers and acquisitions and can also assist with complicated audits.
Small business does not have the capital funds to shell out a salary for a full-time CFO and will instead choose to a virtual chief financial officer. It allows entrepreneurs to utilise the skills and services of an experienced financial executive on a part-time or hourly basis without having to shell out a hefty salary. Outsourcing this position to the right individual can help take a business to the next level.
The CFO has the capability and knowledge to make sense of complex financial data to maximise profits and to make the necessary strategic and critical decisions to take a company to the next level. A good virtual chief financial officer can optimise your cash flow and accelerate your business’ expansion. It makes sense business wise to hire a financial expert to concentrate on these matters while you focus on negotiating new deals, landing bigger clients and overseeing the business. Having a knowledgeable and seasoned team of experts behind you is essential in ensuring success for your business in today’s competitive market.