Why Every Business Needs a CFO
Most businesses have some means of keeping track of their numbers - a bookkeeper or maybe a CPA or even a shoe box full of receipts. We've seen it all. The truth is you need a team to help you manage your numbers to maximize your business results.
Here are the three positions that most businesses will need:
The Bookkeeper's job is to record the numbers in a consistent format that tells you what the revenues and expenses were for your business, on a monthly basis. Many will also generate a balance sheet and a cash flow report. This can be done in Quickbooks, Quicken, and even in an Excel worksheet, depending on the size of your business. There are also industry specific software programs that will support this reporting.
The CPA's job is to be sure that you are following the tax laws and paying the least amount of taxes possible.
Both the Bookkeeper and the CPA will spend over 90% of their time on what has already happened.
The CFO's job to forecast the future of your business. This is designed to reduce risk and to help you be proactive by looking at the business you want to create. CFOs spend 90% of their time looking at what is coming. A healthy well run business needs all three perspectives. By having good solid actual reports that tell you what has and is happening in a timely manner, and a good forecast of what you want to happen you actually create your business. You move from a position of what happened and being reactive to being very proactive with your business. A good forecast gives you a strong structure which will help you identify potential situations on the horizon, such as cash shortages, or capacity issues, etc, that are coming up which gives you time to address the issue BEFORE it becomes a problem. With A good team of financial experts, you will actually significantly more money, and that will more than cover the cost of your financial services overall. Plus, you will sleep much better at night knowing that you are controlling your business vs it controlling you.