Starting a business is always difficult. You can have the best products or the best services but without proper management, the business will have a difficult time taking the next step and reaching higher levels of success.
As the CEO of the business, it is your responsibility to make sure that you are going to properly manage your business. You will have many responsibilities one of which will be to complete the tasks of a Chief Financial Officer (CFO).
The smaller the business, the fewer tasks you will have to complete. But the goal is to increase the revenue of your business which can only be achieved by increasing production, providing better services and building your brand.
Assuming that you have done all that, you now see that there is a growing need to hiring more staff members to speed up processes. All the departments within your business will need additions but the management department will need to receive more focus.
Starting off, as your business grows, you will need to hire a senior executive that will be responsible for the managing of the financial sector of the company. That person is the Chief Financial Officer aka the CFO.
The duties of a CFO are the following:
- Tracking cash flow
- Financial planning of the company
- Analyzing a company’s financial strengths and weaknesses
- Proposing corrective actions
The CFO is the person responsible to manage the financial as well as the accounting division of a company. The aim is to ensure that all of the company’s financial reports are going to be accurate and complete within specific timeframes and one time to meet special deadlines.
Another very important responsibility of the CFO is managing the company’s investments. Although the CFO reports directly to the Chief Executive Officer (CEO) they do have significant input on the company’s actions for potential investments. Based on the company’s capital structure, income and expenses data the CFO is responsible to plan all investments that are to be made by the company to promote the overall success in the long run.
The company bases many important decisions on the data provided by the CFO. As a result, a CFO must adhere to generally accepted accounting principals and regulatory entities
Having a CFO in your business has many benefits. It is a role focusing on compliance and quality control all the way to business planning and process changes. The CFO is one of the most important strategic partners to the CEO and is one of the managers that play a very important role in the business structure and can greatly influence all company strategies.
For many companies, the CFO has the highest-ranking financial position with a plethora of responsibilities and a vital role in decision making for the future of the business.
As your business grows you will need a capable CFO. Financial matters occur often. Solving them requires specialized knowledge and expertise. In other words, a Chief Financial Officer!