10 Reasons Every Business Needs a CFO

Big Business, Small Business, CFO’s Provide Answers

No matter what size your business is, it can benefit from the advice provided by a CFO. Whether you have just started up your company; if you’ve been in business for years, a CFO has experience, knowledge, and insights that he or she can apply to questions and situations that apply specifically to your situation. Here are some reasons why every company needs an outsourced CFO:

1. Raising capital: A CFO helps to lead your management team. He adds credibility to your company and stability to your financial team. He gives your CEO someone to bounce ideas off of when putting together your financial vision.

2. Avoiding mistakes: An experienced CFO is prepared to handle the unexpected. He’s dealt with missed deadlines, budgeting errors and cost overruns many times. He can help the team understand how to handle these issues and more, without the stress and panic that often accompanies them.

3. Optimize cash management: Instead of having cash flow issues popping up at inopportune times, an experienced CFO will be able to show the management team how to plan for the future and stretch each dollar accordingly to prevent cash flow issues.

4. Improve company management: Having been in business for many years, the experienced CFO knows the ins and out of how to run a business properly. He is intimately knowledgeable about each and every part of the business structure and plan. With such knowledge, he can advise the CEO on where to make expansions and cuts as needed for improved growth.

5. Planning & Proposals: A good CFO knows how to constructively challenge a plan, proposal, number, or claim. Having spent many years being a part of both good, bad, and neutral plans he has learned how to improve such things and give helpful advise for improvement.

6. Building credibility: Investors appreciate and value a senior CFO’s contribution. They know that a good CFO can be a trusted advisor and will improve the company’s, and the CEO’s, performance.

7. Gaining investors: Companies that meet or exceed plan, manage cash and headcount well, have a history of delivering accurate, on-time financials, typically get high marks from existing investors. It is far easier to get additional investors when your current investors are happy.

8. Create an aura of confidence: Having access to a CFO reassures employees, creditors, suppliers, banks, service providers, and investors. You will attract better people, get better terms, and operate better as a whole.

9. RoI: A part time CFO more than pays for himself, providing CFO expertise without full-time employee headcount. Many startups use a part-time CFO for as little as five hours per month and can scale his involvement as their needs grow. As affordable as a part-time CFO is, how can you afford not to have one?

10. Gain knowledge: While you have the CFO working with you, your management team has the opportunity of a lifetime to learn from a very experienced businessman with a wealth of knowledge about the business world. Take advantage of it. Ask questions. Learn as much as the CFO is willing to teach you.

If you are interested in finding out more about CFO services the Specialists at Next Level Accounting & Tax would like to direct you to their Accounting Services, which include CFO services, Bookkeeping, and more. Contact Us to learn more.