The Chief Financial Officer (CFO) in a company plays a vital role in growing the business. They’re responsible for overseeing the company’s financial performance, providing strategic advice to the CEO and other executives on financial governance and strategy, and making strategic financial decisions such as whether to invest in new products or markets, raising capital, financing growth, risk management or cutting costs.
CFOs play a key role in developing and implementing the company’s growth strategy from a financial perspective. They will also help ensure the company has the financial resources and support it needs to achieve its growth goals.
So, what exactly is the CFO’s role in driving business growth?
Strategic financial planning
A CFO will use their financial knowledge and expertise to work with the CEO and other executives to develop and implement strategic financial plans. These plans help to ensure that the company is making the best use of its resources and is on track to achieve its financial goals. Strategic financial planning typically includes forecasts for revenue, expenses, and cash flow, as well as strategies for achieving growth goals.
Making evidence-based financial decisions
CFOs are responsible for making a wide range of financial decisions, such as how to allocate resources, how to finance growth, and how to manage risk. A CFO will examine the financial data and make decisions which can have a significant impact on the company’s bottom line and its ability to grow.
Providing strategic advice to the CEO and C-suite
A CFO serves as a trusted advisor to the CEO and other executives, providing them with insights into the company’s financial performance and helping them to make informed decisions. CFOs can also help to identify and mitigate potential risks, implement new growth strategies, and identify opportunities.
Overseeing the company’s financial performance
CFOs are responsible for overseeing the company’s financial performance and ensuring that it is on track to achieve its financial goals. This includes tracking revenue, expenses, and cash flow, as well as identifying and addressing any potential financial problems.
Building and managing a high-performing finance team
CFOs are responsible for building and managing a team of talented and experienced finance professionals. This team is responsible for executing the company’s financial plans, providing financial reporting, managing the company’s financial resources, accounting and bookkeeping.
What if employing a CFO is cost prohibitive?
Employing an in-house CFO can be cost prohibitive for many businesses, especially small and medium-sized businesses. Virtual CFOs and CFO services offer an excellent and affordable alternative to hiring an in-house CFO. Virtual CFOs and CFO services provide businesses with access to the expertise and experience of a CFO without the high cost of hiring a full-time employee.
There are many benefits to using a virtual CFO or CFO service, including:
More cost effective
Virtual CFOs and CFO services are typically much more affordable than hiring an in-house CFO. For a monthly fee, your business gets access to a CFO for a fraction of the cost of employing a CFO in-house.
Greater flexibility
Virtual CFOs and CFO services can be tailored to meet the specific needs of each business. Businesses can choose to engage a virtual CFO or CFO service on a part-time or full-time basis, and scale up and down as needed.
Combined expertise
Virtual CFOs and CFO services have the expertise and experience to help businesses of all sizes to grow and succeed. Usually they are also supported by a team of accountants and other experts, providing clients with the combined expertise of the team for the price of one.
Scalable as the business grows
Virtual CFOs and CFO services can scale with the business as it grows. That enables you to increase your investment only when required so you don’t overcommit on spending.
CFOs play a vital role in business growth, but for many businesses employing a CFO is out of reach. Hiring a virtual CFO or engaging CFO services offer an excellent alternative.
Looking to engage a virtual CFO or CFO services? We can help. Keeping Company is an award-winning accounting firm with extensive experience in CFO services. Contact us today to find out more.
At Keeping Company, we’re not just accountants, we’re business people too. With our counsel, your business can reach its full potential.
We have a team of experts; Cloud Accountants, Business Advisors, Finance Specialists working together and ready to help, contact us today.
For all media enquires please contact Tracy Miller, CMO, Keeping Company 0414 898 452.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.