“Should I hire a CFO?” All small business owners ask themselves this question at some point, most probably multiple times from when they started out. Business owners most often do not know much about finances and would love to have someone take over the money aspect like a CFO or small business accountant, but on the downside is the cost- hiring a CFO can be quite expensive. What happens eventually is that you ask yourself the question on and off, but never really take a decision because CFOs are expensive, or at best hire a small business accountant. Because honestly what matters more than saving money when you have a small business going. So, is hiring a CFO necessary? Let’s find out.
What Do CFOs Do?
A CFO is the number man like your small business accountant or bookkeeper; he watches the cash flow, sales and expenses. He can read budget reports, balance sheets, income statements and all the other accounting and bookkeeping reports with ease. Aside from this, a CFO can provide business planning, financial projections, cash forecasts, annual budgets, monthly management reports, manage debts, mergers and acquisitions and more. A CFO is a valuable asset to any company; he can help you develop and maintain strong financials.
How Can CFOs Help You?
- A CFO Understands Money and Its Workings– You can finally hand over the finances to someone who understands it and can manage it better than you, other than your small business accountant. Your CFO will take over financial analysis, accounting, budgets, insurance, banking, AR, AP and legal issues, all of which means you can focus on your business and growing it.
- A CFO Can Ensure Compliance to Tax and Payroll Laws– All businesses have to follow countless tax and payroll taxes irrespective of the size of the business. And as your business grows, there are more rules that you have to follow; now isn’t that a lot to do. A CFO can take care of all this while you, yes, focus on the business.
- A CFO can deal with Investors– Dealing with investors can be difficult and time consuming; a CFO is the person to deal with investors. He can interact with the investors and keep them updated on the company’s performance.
Hiring a CFO is definitely not easy or cost effective, but it is worth it. Our advice to you: hire a CFO as soon as you can afford one; you and your business need it.