What is a CFO and Why Do You Need One?

1. What is a CFO and Why Do You Need One?

A good Chief Financial Officer (CFO) helps you navigate through several very important aspects of business operations during your company’s life cycle.  A good CFO puts in place the controls and strategies to ensure your business is in the best possible financial situation and that the accounting and back office functions operate effectively and efficiently. 

Your CFO:

  • Ensures that the company’s accounting/bookkeeping is in order.

  • Makes existing accounting/bookkeeping resources more effective (internal staff and external CPAs).

  • Ensures visibility into the company’s balance sheet and cash flow and provides critical metrics to monitor financial health.

  • Frees up the owner’s time to focus on innovation and growth, which leads to value creation.

  • Provides financial leadership by incorporating best practices and creative solutions.

  • Enhances the company’s credibility with banks and potential outside partners.

  • Improves communications and coordination between all critical parties/principals (i.e. banks, co-owners/business partners, investors, bookkeeper and CPA)

  • Increases speed and, therefore, likelihood of success in transactions and/or financing events.

  • Provides a senior-level perspective on strategic business direction as well as tactical priorities and challenges.