There are four styles of CFO that can have a profound impact to your business operations:
The Financial CFO
Whilst the Financial Controller or Accountant will be tasked with maintaining the accuracy of your Accounts and ensuring compliance with the various rules and regulations, the CFO looks at the information across all parts of the business including sales and operations. From this mass of data the CFO breaks it down into revenue drivers and cost drivers, developing a forward looking model and identifying the levers that can and should be used across the business and by the business to optimise performance and maximise profitability. In the same way that your business doesn’t stand still, neither does your CFO who updates the model monthly, continually identifying insights and areas where further attention is required. The CFO shares these insights with the Managing Director, inspiring the team to achieve them.
The Cash-focused CFO
With the MD and CFO working hand in glove to grow the company, the next challenge is always cash. Your CFO knows that business growth costs cash. As everyone knows “Cash is King”. Revenues, costs, margins, strategies and the funds needed to execute them are all different. So too, the model needed to ensure you are forecasting the cash you require in the future needs to be customised and maintained to take into account the nuances of your business. Once you have a comprehensive understanding of your cash requirement your CFO can maintain the relationships with financial institutions to keep them on-side and where necessary, generate the information to build new relationships aimed at increasing the cash available.
The Strategic CFO
For each part of the business and each growth stage: what are the strategies, how are they being measured and tracked, who is accountable and when do they need to be completed? On top of this how are you do you define the non-organic growth strategies and the funding to achieve them? All of this is combined by the CFO in the Strategic Plan and with regular reporting.
The Advising CFO
It’s all about the grey hairs!
A processes, maximising EBIT multipliers for a possible sale and drivers to increase it, and then there is Due Diligence. There are occasions where experience matters. As Joel Nicholson, the Managing Director of Marketsoft, an agile data solutions provider believes,
Your part-time CFO has typically been there and done it before giving you the confidence to take your business to the next level.
Regardless of your organisation’s stage of growth or current challenges, a part-time CFO is an integral way of bridging the strategic and financial gap and achieving success.
CFO Evolve provides exceptional part-time CFOs, passionately building great businesses through financial and strategic insights.
Contact CFO Evolve if you think that we can assist with your business growth.
CFO Evolve
Exceptional part-time CFO and Virtual CFO Services
Commentaires