What are the typical Duties of a CFO?

As a small business owner, you’re already be aware of how crucial financial management is. Without sound finances and an awareness of your cash flow, your company will inevitably suffer.

You may already have an individual on your team that takes care of the day-to-day bookkeeping financials. While it’s great to have someone on board who you can trust with the daily financial duties, what about the more complicated aspects of finances like taxation, financial planning, forecasting, and troubleshooting? For these kinds of things, it’s necessary to have someone with the relevant qualifications and experience. Hiring a Chief Finance Officer (CFO) is the best way to ensure you gain the right expertise and take your finances to the next level.

Here’s a closer look at what a CFO can do for you!

What Exactly is a CFO?

A CFO is a top-level executive role, the most senior financial officer in an organization. They are one of the key personnel of a company alongside the Chief Executive Officer (CEO), Chief Information Officer (CIO), and the Chief Operations Officer (COO). The CFO reports to the CEO and is considered the third highest-ranking role. A CFO is in charge of the managing, planning, and running of all of the finances. They are responsible for maintaining the financial health of the company. For an individual to get to CFO level, they require extensive experience and qualifications. Most CFOs will have acquired advanced degrees in finance and economics and will have a background in investment banking, analytics, or accounting. Many also hold a Masters of Business Administration (MBA) as well. CFOs will usually have gained around a decade of senior-level management experience before they get promoted to CFO level. Additionally, they will have gained a diverse range of business knowledge throughout many different departments. In short, when you hire a CFO, you are getting the highest level of expertise possible for your finance department.

What are the Main Responsibilities of a CFO?

The role of the CFO includes the following duties:
  • If you have a financial team, your CFO will head the department and provide leadership and management
  • Prepare financial statements, profit, and loss reports
  • Oversee income and expense reconciliation reports
  • Oversee cash flow, taxation, budgeting, auditing, and financial planning
  • Approve all financial decisions
  • Reviewing and implementing money-saving strategies
  • Identify financial risks to the company and provide solutions
  • Control financial documentation and records
  • Develop and support the planning of short and long-term financial goals
  • Help obtain funding

The CFO will also be heavily involved in any change management. Whether it’s scaling up or down, reorganizing departments, or relocating. The CFO will manage the budgets and expenses of these large-scale projects and ensure everything is manageable financially.

Benefits of Hiring a CFO

All businesses can benefit from having a CFO on their team – even small companies. As a business owner, simply having someone take care of your financial aspects can be a big source of relief. Additionally, if you are looking to take your business to the next level or in a different direction, a CFO will tell you what is achievable and what isn’t. Overall, the main benefits of having a CFO on board are:
  • Increased profitability: a CFO will use industry averages and standards to benchmark profits and financials. This reduces wasteful expenditure by identifying areas of improvement.
  • Risk reduction: By putting strategies in place, your CFO will reduce and manage financial risks as well as safeguard your business from unexpected events.
  • Increase company value: A company with well-managed finances and good forecasting holds more value. Additionally, your CFO will be able to assess what the business is worth should you ever decide to sell.
  • Improved cash flow: Cash flow is the most essential day-to-day aspect of financial management. A CFO will monitor, plan, and oversee all aspects of cash flow as well as identify risks and put improvement measurements in place.
  • Clear budgets and forecasting: Without the right knowledge, how can you put accurate budgets in place or plan for the future? Your CFO will know exactly how to put money aside for when it’s needed, plan budgets for upcoming projects, and make accurate forecasting reports.

Hiring a CFO for a Small Business

Since a CFO is a top-level role, they typically require a top-level salary. As a small business owner, you’re probably wondering how you could afford to hire a CFO full-time.

Most small businesses don’t need a CFO full-time, so the good news is that you don’t have to hire one on a full-time basis. Companies such as Finvisor have recognized the need for part-time CFOs for small businesses and therefore provide them “as needed.”

This means that you can gain access to all the knowledge, expertise, and benefits that come with hiring a CFO but at a fraction of the cost of a full-time hire. As your business grows, your CFO resource can grow with you and provide more support when required.

Working remotely, your Finvisor CFO will use shared software to keep you informed and updated at all times. If you have bookkeepers and/or accountants, your CFO will oversee their daily activity and work with them to make improvements. It’s time to take the stress out of your finances so you can concentrate on growing your business!

To learn more about what we do, or to request a quote, contact us at hello@finvisor.com or 415-416-6682. We’re here to help you navigate deferred revenue journal entries so you can make the most of your assets!

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*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*

  • Last Modified
  • June 19, 2023

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