3 Benefits of Hiring a CFO For Your Business – What to Know
Every business needs a chief financial officer (CFO) somewhere down the line, especially when a company experiences rapid growth. A CFO plays a pivotal role in creating sustainable financial success and developing easy-to-follow plans from a complex concept and process, making them a key player in business operations.
What is the Role of a Chief Financial Officer (CFO) in a Business?
The role of a CFO is not an open position that anyone can just grab as they provide a significant contribution to the overall workflow of the company. A CFO is responsible for providing strategic financial plans, including budgeting, forecasting, managing mergers, acquisitions, and compliance issues.
They have an in-depth knowledge of your business, knowing its different facets like the back of their hand, from the business model, banking relationships, down to auditors, the board of directors, and more. They have a direct influence on your financial health, management reports, policies, and even payroll.
What are the Benefits of Hiring the Right CFO for Your Business?
Benefit #1: Manage Growth, Profitability, Cash Flow, and Overall Expenses
If your business sells physical goods or services, this means that your company will experience a higher marginal cost. A CFO plays a pivotal part in accurately projecting the sales revenue of a business, which allows the rest of the sales team to properly identify the right target audience.
Not only does the CFO help you have a full overview of the sales process, but they also keep you in line with the company’s cash flow and ensure you won’t lose track of the numbers. In addition to having better financial reports and marketing strategies, a CFO can also help owners make well-informed decisions based on the company’s financial status.
Benefit #2: Boosts Productivity and Keep You Focused on Core Business Needs
The right CFO can juggle different hats, one of which includes streamlining a company’s resource allocations to boost productivity. This includes optimizing different areas to ensure the resources are given a suitable process and timeframe, which facilitates smooth-running operations.
Not only does it enhance productivity, but it also minimizes the risk of bottlenecks and saves money in the long run as CFO prevents the resources from falling into the wrong hands. With a CFO, you can expect an agile cashflow and more room to focus on core business functions as an owner.
Benefit #3: Enhances Accounting and Provide Valuable Financial Insight
CFOs are responsible for managing the company’s financial health and ensuring that all data are accurate and presented in digestible nuggets. This is because stakeholders, shareholders, strategists, and business owners use the financial reports given by the CFO as a basis for making decisions.
This includes financial forecasting, budgeting, investment analysis, financial projects, and presentation of financial reports. The CFO also handles the capital structure and promotes sound financial forecasting to drive growth for the company’s bottom line.
The Bottom Line: CFO Plays a Starring Role in the Growth of a Business
Hiring the right chief financial officer (CFO) can leave a significant impact on your business as they can make or mar your core functions – from increasing sales, reducing productivity wastes, enhancing process inefficiencies, and boosting sales.
If you’re looking to outsource a CFO for your bookkeeping, get in touch with us to see how we can help.