If you’re the CEO or the owner of a company, you’ll want to expand it to a respectable size. If so, you will eventually need to employ a chief financial officer early on in the life of your company (CFO). It doesn’t have to be full time, and having a more adaptable, part-time arrangement at the beginning is probably going to be much better for the firm. The most important thing to remember is that you need a Fractional CFO who has the necessary skills and credentials—this won’t be your accountant or bookkeeper.
Here are the major justifications why you and your company require a CFO:
1. If you don’t have effective financial control, your company will fail.
The biggest cause of business failure is money problems. A competent CFO will start by taking a close look at your company and determining where the money is coming in and going out. They will then create a plan for you to make sure the leaks are sealed and the flows begin to flow. This might be enough to save your company.
2. They’re not just numbers crunchers
You get a knowledgeable and experienced business partner with a CFO. You hire someone who has witnessed both business successes and failures and is aware of what to watch out for. With that experience comes vision and foresight, the capacity to predict what will likely happen to the company in the future and make plans accordingly. Unpreparedness can make a business just as vulnerable to a wonderful economic opportunity as it is to a calamity.
3. A CFO assists you in making the difficult choices you’ve been putting off.
There are difficult decisions that must be taken in every organization, and frequently these include interpersonal connections within the company. A CFO can assist you in outlining the business case for your choices and in comprehending the implications of delaying those choices. As the CEO, this enables you to defend your choice to yourself and proceed in the proper way. Your CFO will also assist you in taking a step back and viewing the company from a fresh perspective. Unless you have someone guiding you, it’s frequently challenging to take that higher level picture while you’re mired in the company.
4. You improve your reputation with clients, vendors, and investors.
When consumers, suppliers, and investors get the opportunity to speak with the CFO of a company, their perception of the enterprise’s size and financial viability improves. Deals and investments are occasionally closed thanks to the credibility a CFO gives.
5. It demonstrates that you take your business seriously.
Do you treat your business as a serious endeavor or merely a hobby? Even on a part-time basis, hiring a Fractional CFO is a commitment, but it is one that demonstrates your confidence in your company and its future. It demonstrates your level of self-assurance by allowing a serious businessperson to join your team to assist in managing and supporting your expanding company. It demonstrates insight and sound judgement. It demonstrates your leadership.