Does Your Business Need A CFO
Apr 20, 2011
Has your business struggled in recent years? Has it outgrown your bookkeeper or controller? Have your revenues dropped rapidly in recent months? Are the contracts and negotiations that are a part of your business becoming more complex? Are you uncertain about how to execute your growth strategy? If you answer yes to any of these questions you might need an experienced Chief Financial Officer (CFO). Here are a few things to consider:
- All companies should review their financial performance on a regular basis. As with many businesses, owners are typically too involved with the day-to-day operations that they neglect reviewing their financials. All too frequently they do not discover financial problems until after they occur. Having a CFO who can compile and analyze the numbers and tell you what they mean is a critical element of your success. Today Chief Financial Officers (CFOs) do more than simply crunch numbers and churn out accurate financial statements. They are often tasked with the responsibility of driving dynamic strategy development, orchestrating risk-based assessments of opportunities and identifying ways to boost performance.
- A good CFO will ask questions about your business and provide you with a sounding board of help. Based upon their experience, a CFO will have insight into determining which questions to ask and to even figure out how they should be answered. CFOs are often challenged to assess the cross departmental efforts of operations, sales, marketing, engineering, and information technology to ensure that capital and operating expenses are yielding the intended results. Financial executives do more than just master the technology and the processes that are traditionally included under the finance function. They are often given the responsibility of delivering high-impact business results, as illustrated by the popularity of incentive-based compensation, balanced scorecards and shareholder value-added types of metrics, on pricing, customer selection and sourcing.
- Many business owners have difficulty comparing their business performance against their competitors. This is something that an experienced B2B CFO can do for you so that you have the competitive intelligence and business facts that you need to profitability grow your business. Information is power and today’s CFO has the responsibility and the mandate to rapidly generate and analyze financial information to help the business be more competitive.
All companies, big or small, face many of the same challenges and strategic issues. Consequently, all companies have many of the same needs, including the type of real world economic value that an experienced CFO can provide to your organization.