What A CFO Should Be To You

Nov 04, 2008


Many times I talk to entrepreneurs and the subject naturally comes of the CFO role in an enterprise.  Often I hear that I have a great CFO who does a great job keeping the books.  These people feel proud that they have filled a slot at one-half the cost of other companies.   They also talk in terms of successfully controlling overhead.


In congratulating them on their success, they generally admit that the "CFO" has no formal accounting training and no financial training or experience. It is really a shame that these people do not recognize the profit a trained, experienced CFO brings to their organizations.


Bookkeepers provide an essential role in keeping the day to day books. Relying on this skill alone, however, can cause a company to dramatically misstate their financial position, causing them to lose essential bank financing, bonding and even contracts based on the financial position they represent. 


A Controller is a trained accountant whose job is to maintain internal controls, accurately report operating and financial measures, accurately value inventory, accounts receivable and other assets.  A current study and knowledge of ever changing accounting rules by regulatory agencies is vital to this role.


A Chief Financial Officer, however, is an executive position, a partner in the entrepreneur's success.  A CFO designs strategies to improve the gross profit, finances the business efficiently, confirms accurate financial and operations reporting, and creates cash forecasting.  The CFO has the ability to test out your plans and strategies in financial models before you risk the company in its implementation.  The CFO is a profit builder, not an additional cost.


But what about the cost of a seasoned CFO?  The answer to small and mid sized businesses is the B2B CFO.  As a part-time CFO, we provide the value described above at a truly reasonable cost.  Our slogan that  "Every company regardless of its size needs a CFO" can be achieved.  Please ask me how.


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