Why Every Company needs a CFO

Every Company, Regardless of size, needs a chief financial officer. Often when I say this to business owners they give me back that ya right look. Why? This is actually a good question which I will unpack over the next few blog articles.

Let’s start with the difference between a controller and a CFO. Most businesses have a controller or an accountant who processes the day to day transactions. They pay the bills, invoice the customers, reconcile the bank statement and perhaps even produce a financial statement. If the owner wants something accomplished in this arena he goes to his controller. The controller keeps the business moving along from a record keeping standpoint all of which is indispensable to the business owner. A controller by definition is a detailed oriented individual who deals with the historical aspect of the business. Accounting is history.

A CFO, on the other hand, takes this history and says so what. So what is happening to revenue and why? Where do we want revenue to go and how will we get there? The expenses we are incurring, are they accurate? Are they reasonable? Are they what they should be? How do we achieve the profitability we should have? Is the financial statement you receive accurate and relevant to how you need to make decisions?

A CFO takes this history and looks to the future. They move from the detail to the big picture of where the business needs to go. How you can create value in your business and more importantly how you can get there.

B2B CFO® is a national firm engaged in providing part time CFO services, which makes this an affordable option for every business. As a partner with the firm I am well position to help you, the business owner, achieve your goals.