What Does a CFO Do?
In this discussion, the term Chief Financial Officer (CFO) is used to describe senior level executives, typically with 20+ years of experience, who are fluent in strategy, capital markets and banking, acquisitions, budgeting, forecasting, and forward planning.
They have insights based on their experience in sales, marketing, engineering, and operations. A CFO’s focus is on overseeing a company’s financial activities and operations. This includes helping your business address short-term needs and day-to-day analysis — think establishing performance measures and understanding the drivers of cash flow — in addition to long-term ones, such as assessing financial risks and opportunities. As a strategic partner and advisor, the role of a CFO is to keep a company on solid footing and moving forward. Most of their time is spent working with you to improve operations, increase revenue and increase cash flow.
Most companies under $50M in sales do not employ a Chief Financial Officer (some will have a controller with that title) due to the relatively high expense of a CFO. Engaging a professional firm that delivers CFO services can particularly benefit small and mid-sized businesses, which often see their financial situations become more complex as they grow. Many of these companies don’t have room on their payroll to hire a full-time CFO and lack the in-house financial experience they need to make informed strategic, long-term and day-to-day decisions.
Outsourcing the CFO function is a way to bring on much-needed financial expertise on a flexible and affordable basis.
For more information contact Darren Cherry at [email protected]