Mind of Money

September 9, 2017 at 1:00 am

Small Business 101: The Role of the CFO

CFO text on a black blockIt’s fairly common for small business owners not to have their finances completely ironed out. However, it’s extremely vital that owners know how they’re finances are doing at the least. Getting an accountant to help out is great, but having a CFO or chief financial officer would be better. With a CFO, you’ll have someone to focus on your finances, while you concentrate on making your small business successful.

What a CFO Could For You

When you bring a CFO into the fold, his or her job will be focused on strengthening your financials by doing the following:

  • Financial Forecasts – provide financial projections, including detailed budgets by department
  • Business Planning – make suggestions that would fit your budget and goals
  • Pricing – help create economic models for setting prices
  • Monthly Management Reports – these include current and past financial data
  • Rolling Cash Projections – will help you better respond to present and future business conditions
  • Yearly Operating Budgeting – will aid you in keeping track of salaries, operations and maintenance plans, and various expenses
  • Three to Five-Year Financial Planning – provide projections for revenue and expenditures in these periods, as well as establishing corresponding strategic objectives
  • Debt and Equity Negotiations and Management – restructure debts to resolve liquidity issues and create a payment schedule and budget for repaying debts
  • Mergers and Acquisition – this includes business valuation
  • Liquidations – more strategic reallocation of company property and assets

If You Don’t Have the Funds to Employ a CFO

If you lack the budget to hire a CFO outright or feel that you don’t need all the bells and whistles that a full time CFO could offer, you have another option. You could opt for a firm like Consero Global that could help with your business’ day-to-day financials such as bookkeeping and accounting and perform CFO consultant service.

When you outsource these, you’ll have more free time to focus on your business operations and making it grow. Put simply, the firm you’ll hire would be responsible for ensuring that all your financials are on track. Although this would cost you some money now, you’ll find that it’s well worth it as your business expands and become more profitable.

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